Regulatory technology, or ‘regtech’ as it has become more widely known, started as a way for the financial services industry to deal effectively with myriad new directives and regulations. Today, it is the catalyst for a host of strategic applications.
In collaboration with Moody’s Analytics, Risk.net conducted a survey of bank compliance, technology, finance, risk, regulation and operations personnel about the various issues around regulatory protocols coming their way.
The results provide a glimpse into a world in which banks have been trying for nearly 10 years to meet the changing needs of the regulatory community through existing technology platforms. Those platforms, however, haven’t always been optimised to produce the most efficient results. While that challenge has put a strain on budgets and personnel along the way, it has also alerted banks to the role regtech can play beyond its original mission of delivering compliance. To accomplish that, banks must first fully understand the vast world of new technology and then make the right decisions on how to marry existing and new technologies. As always, those that act quickly and correctly will benefit the most.