Can corporate governance and the culture of financial services firms keep up with the pace of growth of regulatory technology?
During the past several years, regulators have invested heavily in technology to protect and monitor regulatory reporting data quality. The main challenges for 2021 will focus on new regulations, preparing for those with effective dates this year and those that are going through the legislation, proposal and comment processes. This leaves financial services firms with no option but to address automated reporting as a way of validating all data submitted to regulators, detecting and correcting data issues as they arise, and setting up an overall data governance framework across different regulatory reporting requirements. Thus, Regulatory Technology (RegTech) is crucial for operational management and strategic decision-making for both the risk and compliance functions as it is designed to help firms understand and meet legal requirements more effectively and efficiently.
According to Thomson Reuters Regulatory Intelligence’s 2020 annual survey report “RegTech and the role of compliance in 2021”, despite firms facing several budget challenges during the pandemic, the adoption and implementation of regulatory technology has taken a huge step forward with 70% of the surveyed firms reporting that COVID-19 increased their reliance on technological solutions.
The study, which shares the experiences of more than 400 compliance and risk practitioners, found that this sector’s growth is expected to accelerate in the coming months and years. Firms and their customers are realising the great value of adopting a wide variety of Fintech solutions.
The survey also shows that firms must be careful to deploy solutions on solid foundations. This means getting corporate governance right. A quarter of respondents said that corporate boards and the risk and compliance functions need to be more involved in finding and adopting Fintech solutions for the firm, highlighting the absence of appropriate skill sets as one reason for this lack of involvement.
Moreover, RegTech applications continue to provide popular, embedded solutions for firms in areas such as compliance monitoring, financial crime, AML/CTF, sanctions and regulatory reporting. Budgets are predicted to increase with a mix of in-house and external solutions as the option most frequently selected by respondents.
Interestingly, just 16% of firms reported they had implemented RegTech solutions, with a further 34% stating that RegTech solutions were affecting the management of compliance. Notably, the report identifies a shift from build to buy; firms that employ inhouse solutions fell to 6% in 2020 from 17% in 2019, while 12% reported that all of their RegTech solutions were developed externally.
Why choose MAP FinTech to be your regulatory technology partner?
MAP FinTech is a leading and award-winning regulatory technology provider for the financial services industry, specialising in reporting solutions arising from the requirements of a number of complex and challenging international regulations such as EMIR, MiFID II/MiFIR, SFTR, FATCA, DAC6 and CRS. MAP FinTech also provides innovative and comprehensive solutions for Best Execution Monitoring, RTS 27/28 Reporting, AML Transaction Monitoring and Screening, Trade Surveillance (Market Abuse), and eKYC (Screening, eIDV, Document Authentication).
- Industry Pioneers
MAP FinTech was one of the first providers in Europe to report under the European Market Infrastructure Regulation (EMIR) with 1.5 billion+ transactions successfully submitted since February 2014. The company currently supports over 170 B2B global clients, having been recognised for the Best RegTech Reporting Solution for 2019 by Finance Magnates London and named as one of the 100 most innovative RegTech companies in the world for 2020 and 2021 by RegTech Analyst. LSE-listed brokers, including some of the biggest CFD brokers in the world, currently use MAP FinTech’s innovative solutions.
- RegTech Experts
MAP FinTech is not just a technology company that develops software to help clients report. At the core of its offerings lies compliance. MAP FinTech provides quality assurance that the reporting obligations are correctly covered in terms of data quality. If the need arises, the firm can also directly support businesses before any national competent authority without needing any external third-party advisory or assistance.
MAP FinTech can directly and uninterruptedly report to a number of EU national competent authorities. MAP FinTech’s products have been repeatedly tested and passed several rigorous reviews by EU regulatory authorities, providing full transparency for both clients and EU national competent authorities. Moreover, the company offers financial institutions the unique facility to comply with a firm’s reporting obligations before the regulatory authorities, carry out audit trails, and conduct their own reconciliations.
MAP FinTech has managed to successfully and innovatively combine the compliance and technology functions with both of its teams working in close unison. This allows the company to be flexible, efficient and effective in supporting the many new, demanding and dynamic requirements of the global RegTech world.. The team’s combined expertise underpins the company’s success in providing targeted solutions to its clients and addressing their reporting needs across a diverse regulatory landscape.
- One-Stop RegTech Provider
MAP FinTech’s solutions are all delivered under the Polaris Platform, the company’s single and powerful RegTech tool. Besides transaction reporting, the Polaris platform combines, under a single unit interface, unique solutions such as Market Abuse Surveillance, AML Transaction Monitoring, Best Execution Monitoring, RTS reports and CRS/FATCA reporting, among others. This allows MAP FinTech to package its offerings to its clients by reducing direct and indirect costs, maintain a single point of contact for support and access to the system, and avoid the need of multiple integrations with various vendors, thus saving clients both time and resources.
- Impeccable Support Services
MAP FinTech’s dedicated and experienced support team specialises in regulatory reporting, providing continuous support on what is needed to master transaction reporting requirements. This starts from the onboarding phase and covers the whole process up until the initiation of the live reporting, the handover of the platform to the client, and ongoing day-to-day support.
- Unparalleled Compliance Expertise
MAP FinTech is a member of MAP S.Platis Group, a leading financial services consultancy group in the region that maintains one of the largest and most experienced teams of financial services compliance experts in the EU. This ensures that clients receive the best compliance support and guidance from industry experts in the EU, but also in the UK via Complyport, a leading London-based compliance advisory firm with more than 20 years of experience.
- Switch to MAP FinTech Swiftly, Seamlessly and at No Extra Cost
Integration with MAP FinTech is simple and fast via the company’s unique Switch Service, which requires minimum effort, costs and resources. Additionally, MAP FinTech’s solutions can support multiple trading platforms, execution flows and models, and products, among others.