Regulatory Technology (RegTech) has emerged as a hot topic in financial services. While some have defined RegTech as a tool to improve efficiency and effectiveness, others describe RegTech as a phenomenon, a global paradigm shift and a strategic opportunity that will help companies successfully execute their business models in the context of a safe and sound global financial system.
After the global financial crisis (GFC), many financial service companies invested substantially to remediate existing regulatory issues, to keep up with new regulations and regulatory expectations, and to add compliance headcount. While sizable investments have been made, many companies continue to fall short of regulatory expectations by maintaining highly manual regulatory and compliance processes, which lack meaningful data for transparency. These processes are in dire need of digitization, automation, business intelligence, artificial intelligence and predictive capabilities.