Abstract Texture

What is RegTech?

Rock Formations

Regulatory Technology (RegTech) encompasses any technological innovation that helps improve efficiency and transparency in regulation. It encompasses 4 Key Characteristics: Speed, Agility, Analytics & Integration. 

Often regarded as a subcategory of FinTech, RegTech places increased emphasis on regulatory monitoring, reporting and compliance, making it ideal for the Financial Sector. However, despite its primary application in the Financial Industry, RegTech is quickly expanding across market sectors as an ever increasing number of firms begin to realise its merits in achieving and exceeding government mandated compliance standards.

Reports can be configured and generated quickly with no loss of quality

Cluttered and intertwined data sets can be organised through ETL (Extract, Transform, Load) Technology 

It offers short
timeframes to get the
solution up and
running

Analytic tools intelligently mine existing "big data" data sets and unlock their true potential 

SPEED
AGILITY
INTEGRATION
ANALYTICS

A BRIEF HISTORY OF REGULATION

THE REGTECH PROMISE

 

Slashing costs

Driving down the cost of compliance through automation, simplification and standardisation of regulatory processes

Identify risk & issues

Assist firms to identify risks and issues through scenario analytics and horizon scanning for new regulations

Sustainable and scalable solutions

Utilise solutions to allow flexibility and growth to move away from rigid risk management systems

Link controls & frameworks

Allow controls and risk framework to be linked seamlessly as RegTech solutions work with enterprise-wide governance and risk platforms

THE ECOSYSTEM 

Financial Institutions

Develop RegTech

strategy and 

roadmap and adopt solutions

RegTech Firms
Understanding of engagement between business and regulators to help develop solutions

Regulators
Encourage dialogue and gather market views to promote innovation and create common 

standards

Professional Services
Responsible for understanding the requirements and solutions in the ecosystem 

BANKS ON COMPLIANCE COSTS 

Fined $41 m by the Securities and Exchange Commission for insufficient monitoring for AML in 2017 and in 2016, fined $7.2bn by U.S. Department of Justice 

Spending on regulatory programmes and compliance rose 12% to $800m in the first three months of 2017 

Securities division fined $16.5 million for AML faults in 2016 

Fined $8.9 bn for violations in transaction sanctions in 2014

Fined $34.5m for failing to report details of trading in exchange traded derivatives 

$80 billion is currently spent on governance, compliance and risk, with the market expected to grow to $120 billion within five years.

Between 2009 and 2015, the fines and settlements amounted to $204 billion

On average, financial institutions have 15% of their staff dedicated to compliance

Compliance costs represented 3% of total expenses for banks with assets between $1-10 billion and 9% for banks with less than $100 million.  

COMPLIANCE IN NUMBERS

 

Click here to learn about our RegTech 101 Training Programme

An online, certificated training course designed to bring you through all the hoops of Regulatory Technology

80 Robinson Road

#08-01 Singapore 068898

info@regpac.com

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