A recent article published in RegTech Analyst discusses how firms can effectively leverage technology in an evolving regulatory environment with various industry experts offering their thoughts on this issue.
The article emphasises the growing importance of technology and regulatory compliance in this rapidly changing landscape, highlighting keyways in which technology supports the regulatory process and addresses compliance requirements related to geopolitical events, such as sanctions resulting from conflicts.
The piece also discusses the role of Regulatory Technology (RegTech) in meeting compliance challenges and stresses the need for banks to identify regulatory requirements, develop policies based on risk profiles, and continuously monitor their technology compliance solutions. Likewise, the importance of trust in third-party solutions and the use of technology to enhance regulatory reporting is mentioned as a paramount issue, while also emphasising the growing digitisation and sophistication of RegTech firms with their ongoing adoption of AI and machine learning in compliance processes.
Christodoulos Mouskos, Head of Operations at MAP FinTech told RegTech Analyst that “collaborating with RegTech providers grants firms access to a diverse pool of specialists who possess the necessary skills to navigate evolving regulatory landscapes efficiently. Hence, this collaboration offers benefits like cost efficiency as RegTech solutions eliminate the need for substantial in-house technology investments, thanks to their scalability.”
Similarly, such solutions can be tailored to meet a company’s specific compliance needs and reduce the opportunity costs of diverting resources to regulatory compliance. Mouskos points out that “trust is particularly crucial when it comes to regulatory reporting, as it involves the submission of data to competent authorities. Leveraging reputable service providers for regulatory reporting offers lower costs, faster integration, and access to industry expertise.”
He concludes: “To further enhance these efficiencies, companies should foster collaboration with service providers, use data analytics and machine learning, and establish clear performance metrics.”
Read the full article here.