The debate over whether firms should adopt third-party RegTech solutions instead of building them in-house is presented in an article published in RegTech Analyst. Jonathan Hall, Regulatory Analyst at MAP FinTech, provided his insights on the topic. Jonathan notes that companies should consider a number of key factors before taking the make-or-buy decision for RegTech solutions. First, the decision includes technology and implementation. Start-up costs, hardware, and software are involved, as well as connection fees, hosting, and development team and support.
There is also the critical aspect of regulatory compliance that concerns multi-jurisdictions, tech standards requiring deep-dive analysis and comprehension, monitoring, and reconciliation, and staying up to date with amending regulatory requirements.
Jonathan also pointed out that companies must weigh the higher costs of direct reporting to a TR against the cost savings available through synergies and aggregation offered by a trusted third-party provider.
Finally, he remarks, the factor of human capital should be considered. This includes the cost of employing experienced professionals who require continued training.
Find the full article here.