RegTech and Policy - How to keep pace with innovation?
17 September 2018
Technology is undoubtedly changing the way financial services organisations operate with aging functions being removed or automated to drive efficiency and cost reduction. At the same time new delivery channels are emerging that allow companies to interact with each other and their customers in ways not imagined at the turn of the century.
With an unprecedented pace of change, how do businesses and policymakers keep pace with innovation? And with all this investment in new technology, what are the potential pitfalls for risk and compliance professionals? How can we strategically plan investments in compliance technology not knowing whether regulation will be able to use it?
These are just some of the questions that I am looking to put forward to a number of policymakers at the upcoming GI2 conference in Paris. With regulatory compliance in financial services experiencing one of the most revolutionizing technological transformations, this will be a timely debate.
Last year alone over USD 1 billion was invested globally into RegTech startups 1. In the first quarter of 2018 investment amounted to USD 533 million, indicating that this trend will continue. With increasing regulatory reporting requirements and regulatory enforcement actions resulting from the financial crisis, it is no surprise that financial institutions are driving this trend by turning to the use of data and technology for regulatory compliance (RegTech).
Technology is not only changing industry. Increasingly regulators are turning to the use of data and technology to monitor and learn more about institutions and the financial system. This becomes evident in the shift towards more frequent and granular data reporting requirements set by regulators.
With the steep rise in RegTech investments, and the risks associated with the adoption of new technologies for regulators and industry, it is critical we understand and collaborate around the opportunities of RegTech. Keep an eye out for my upcoming blogs, where I address some of these questions using the insight from regulators and industry participants from the GI2 conference.
