RegTech is changing the risk ecosystem, but also increasing pressure on compliance teams. To answer their questions on the march of regulatory innovation, we asked our #RefinitivRiskUK30 influencers to join the conversation.
In the race to meet regulations such as MiFID II,the EU’s Fourth Money Laundering Directive, or the U.S. Federal Reserve’s final rule on financial stability, institutions need trusted innovative technology that goes beyond just compliance.
This means having the ability to deliver additional advantages such as greater shareholder value, better visibility, or an enhanced experience for customers in areas such as KYC and regulatory communications.
To help meet these requirements, we are playing host to a Virtual RegTech Summit. The event offers an opportunity for regulators and financial institutions to engage in a dialogue about key challenges affecting the industry and consider potential RegTech solutions.
As part of the build up to this summit, we recently hosted a Twitter Chat involving the UK’s top 30 social influencers in risk, compliance and RegTech.
During the session, we asked for their opinions on issues ranging from RegTech budgets to the best way to assess an entire risk ecosystem.
Collaboration not competition
The need for the development of RegTech solutions has rapidly grown over recent years.
Numerous firms are applying technologies capable of automatically interpreting regulations, but:
How important is co-creation with partners in the development of new RegTech solutions?
Christian McMahon, globally experienced CIO and #8 on the #RefinitivRiskUK30, responded to this question by stating:
“It’s key to bring new RegTech offerings to a larger market and evolve the offering for everyone as long as the larger players don’t force them into exclusive agreements. This stifles innovation.”
Working with RegTech is about collaboration rather than competition.
Firms are still trying to get to grips with the regulatory regimes in their home jurisdictions while the number of extra-territorial regulations continues to rise.
Regulatory change has become the only constant.
Which existing regulatory compliance requirements do you feel would most benefit from RegTech?
Embracing RegTech not only helps shift the regulatory burden off firms, it also helps to drive down costs by consolidating data through single reliable systems.
David Doughty, #1 on the #RefinitivRiskUK30, said: “Using RegTech to automate the regulatory process could be a quick win — helping to reduce the cost but also improve the quality.”
Though the benefits of artificial intelligence have yet to be truly developed, companies are still investing billions in AI products, and entire industries are making it a priority. This led to the following question:
If human beings are at the core of risk challenges, how can you automate what they do?
Toyin Olakanpo, Regulatory & Compliance Expert and #13 #RefinitivRiskUK30, answered: “You cannot fully automate but you can place a value on in-house training to ensure healthy compliance functions.”
What’s your outlook for the future around risk and compliance?
David Doughty said: “Regulation and compliance to date has been tactical and reactive — in the future it should be moving towards being strategic and pro-active — using predictive Big Data analysis and AI to identify new risks before they become a problem.”
Andrew Yuille, Head of Risk Business Solutions, responded: “I have to agree. It is the regulators that own the agenda; we are just the players on their stage.”
Building scalable management solutions is key to many businesses, and targeting those solutions to the size of your business can be vital.
Enhancing awareness, bolstering debate and encouraging conversation can provide real value.
How do you build scalable models that address the changing dynamic of risk and regulation?
David Doughty replied: “That is the fundamental question that RegTech innovators need to address — population growth and the changing demographics in emerging markets will dramatically increase the requirements for scalable solutions for regulation and compliance.”
It’s clear that these are questions that will continue to be asked; on the subjects of changing demographics, new markets, growth, intuitive technology and the future of regulation.
To anticipate and navigate global regulatory compliance confidently, with the most comprehensive and trusted intelligence available, conversations such as these must continue to be had and be heard.
That’s why our Virtual Summit is so important as an immersive learning experience, providing a breadth of knowledge and insight from industry experts across key areas and themes.
This unique event offers access to a range of materials that are interactive and informative, enabling you to participate in live webinars and debates, network with peers or explore and download detailed reports and analysis on key topics within your chosen business area.
Our connected approach to regulatory change provides enhanced content integration and mapping capabilities to ensure you don’t miss a regulatory development.
Regulatory Intelligence allows your business to review and implement regulatory change as it occurs, providing world-class content and advanced technology that cuts through the complexity and the sheer volume of content and developments within the regulatory compliance environment.
If you would like to learn more from our influencers or from us, join the community.