WHAT IS REGTECH?
Regulation Technology or RegTech encompasses any technological innovation that helps improve efficiency and transparency in regulation. It encompasses 4 Key Characteristics: Speed, Agility, Analytics & Integration.
Reports can be
Cluttered and intertwined data sets can be organised through ETL (Extract, Transform, Load) Technology
It offers short
timeframes to get the
solution up and
Analytic tools intelligently mine existing "big
data" data sets and unlock their true potential
Drving down the cost of compliance through simplification and standardisation of processes
Assist firms to identify risks and issues through scenario analytics and horizon scanning for new regulations
LINK CONTROLS AND FRAMEWORKS
SUSTAINABLE & SCALABLE SOLUTIONS
RISKS & ISSUES
Allow controls and risk framework to be linked seamlessly as RegTech solutions work with
enterprise-wide governance and risk platforms
Develop RegTech strategy and
roadmap and adopt solutions
Understanding of engagement between business and regulators to help develop solutions
Encourage dialogue and gather market views to promote innovation and create common
Responsible for understanding the requirements and solutions in the ecosystem
Utilise solutions to allow flexibility and growth to move away from rigid risk management systems
RegTech Risk Management
$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.