The influence of regtech will continue to grow as businesses in the finance industry manage the increasing challenges and pressures of remaining compliant. The regulatory environment is growing and becoming more complicated. To remain compliant with continuing evolving laws and the rise of big data RegTech is becoming a focus area. What do this offer to the finance industry and its future?
The finance industry is under pressure to maintain data safety, privacy and to continuously monitor cases of fraud or illegal activity. Regtech incorporates technologically advanced solutions, applying software and data to ensure a company’s journey towards compliance is more effective. According to Deloitte, true regtech includes the following features that make it different from other compliance solutions:
- Agility: Datasets can be arranged and organised via ETL methods
- Analytics: Innovative ways of exploring big data providing detailed analysis for potential risks.
- Integration: The solution enables instant operation
- Speed: Real-time reports and customisation allow effective feedback and the ability to adapt when required.
The Regtech cloud-based solution provides a flexible deployment that can adapt to the needs of a business. The main purpose is to provide a service that eliminates the effort and risk businesses face in remaining compliant.
The finance sector is heavily regulated, requiring compliance with various organisations and even governments. Regtech includes several benefits enabling businesses the flexibility to focus on enhancing customer experiences, creating new services and solutions and implementing long-term planning options.
The long term goal of regtech is to create a transparent financial system capable of adapting to possible disruptions. Some examples of this system in action are within the information-based compliance area, including identity verification and regulatory reporting.
With further support through government funding, private investment and additional research, regtech can have significant impacts. Data continues to grow, and the demands in the finance industry to manage this increased volume of data is becoming more challenging.
The influence of regtech will continue to grow as businesses in the finance industry tackle the growing challenges and pressures of staying compliant. The startup industry is open to new solutions to these regulatory hurdles, and the results could create transparency and trust with the customers.