RegTech: A Hot Area in Financial Technology
Second, the number of #regulations, their wondrous mutability, and their variety across jurisdictions, all but require banks and other financial firms to find ways to automate as much of the regulatory compliance as they can. Unlike a talented trader or a skilled deal maker in an investment compliance officers don’t add to revenue - their presence drops straight to the bottom line, but as a debit. Leading regulators, such as the FCA in the UK, recognise that financial firms need to use technology to meet regulatory demands.
Regulatory demands are not going away anytime soon. In a recent report entitled” RegTech Rising”, John PR Dwyer, an analyst at Celent, writes that the “regulatory burden facing financial institutions continues to grow and is unlikely to change for the rest of this decade.” Financial institutions and regulators need to use technology to automate regulatory compliance as much as possible. The areas identified by the FCA, such as big data and visualization are areas that already exist within FinTech, said Dwyer. The FCA’s support could be important, he added. “This is potentially very significant because it means that startups may have an adjacent market for their product in addition to their core market. Such adjacencies are highly attractive from an investor’s perspective as it presents an alternative market opportunity which does not cannibalize the core use case, thus creating another source of value.” Most of the newcomers offer their technology in the cloud and several also offer it on-premise behind an FI’s firewall.
Find out what technology solutions financial services firms are buying, why, what the scope of the solution is and where the technology is being deployed globally. Also, in this new report, find out where compliance practitioners and law partners REALLY rank in terms of their regulatory knowledge. http://www.marketfintech.com/regtech-report