REGULATORY TECHNOLOGY (COMPLIANCE)

Regulatory technology (Regtech) has evolved rapidly in the financial industry, especially in large global financial institutions. But a disconnect exists between the uptake of RegTech among industry participants and the uptake among regulators, of which the latter are becoming acutely aware. RegTech provides the foundation for a shift toward a proportionate, risk-based approach.

The regulatory changes and technological developments following the 2008 Global Financial Crisis are fundamentally changing the nature of financial markets, services and institutions. At the juncture of these two phenomena lies regulatory technology (RegTech) the use of technology, particularly information technology, in the context of regulatory monitoring, reporting and compliance.

RegTech to date has focused on the digitization of manual reporting and compliance processes, for example in the context of know-your-customer requirements. This offers tremendous cost savings to the financial services industry and regulators. However, the potential of RegTech is far greater - it could enable a close to real-time and proportionate regulatory regime that identifies and addresses risk while also facilitating more efficient regulatory compliance. Banks and other Financial Institutions (FIs) are just beginning to adopt RegTech. We expect rapid progress in other areas of RegTech, transforming regulatory compliance and wider risk management over the coming years. But this progress won't "just happen". Bringing about this transformation, and realizing the benefits that RegTech offers, will require banks to change their people strategies, augmenting current competencies with the new skills in data and advanced analytics. They will need to become more "agile" in the way they work, and more.

 

 

REGULATORY TECHNOLOGY IN COMPLIANCE

Compliance isn't a new challenge to business. In fact, it is something that organizations have been grappling with for some time, particularly those in highly regulated industries such as insurance and banks. The need for businesses to remain compliant with increasingly stringent industry regulations has once again come into focus. Increased financial sector regulation was always likely to follow from the financial crisis. But few could have estimated the extent of it. Ten years on, the wave of new regulation shows little sign of abating. These new regulations concern not only capital and liquidity requirements - the issues arising directly from the crisis - but consumer protection, money laundering, data access, privacy, cyber-crime and much MORE. Complying with these regulations and adapting to their strategic implications has become the major preoccupation for banks.

The most direct and obvious effect of this growth of regulation has been on the complexity and as a result cost of compliance. While headcount in customer-facing roles has been declining, the number of bank staff working in compliance and control roles, which are usually high-paid, has exploded.With much of their effort devoted to wading through regulation-related paperwork. Since 2008, investment banks' spending on compliance and control has tripled

Applying digital technology to regulatory compliance promises to significantly reduce costs, while simultaneously making compliance processes faster and more reliable. Many of the tasks now performed by slow, error-prone and expensive human beings can instead be done by machines Real-time analytics are being used to improve the speed and accuracy of checks for financial crime and money laundering. And semantic analysis of the communications of staff with high compliance risk, such as those responsible for the Libor scandal, is helping to reduce banks' compliance risk. We expect RegTech to help transform financial sector regulatory compliance in four ways

  • Technology that allows more efficient methods of sharing information.

  • Technology that drives effectiveness by closing the gap between intention and interpretation.

  • Technology that simplifies data allows better decision making and enables cognitive automation.

  • Technology that allows regulation and compliance processes to be looked at differently, proactively.

WHAT WE PROPOSE

The regulatory landscape is continuously evolving. Laws are constantly being introduced, leaving their interpretation and implementation one of organization's constant challenges.

3consulting has developed a software solution that helps enable the compliance process. It creates efficiencies and confidence that sustainable practices are in place and, most importantly, that the company is compliant with applicable laws and regulations.

Whether it is executing risk assessments, identifying and remediating compliance issues, preparing for legal entity management, incorporating feeds on laws/regulations, or generating bespoke reporting.

For example, in order to manage the constant stream of changes in regulations, 3consulting has the ability to link directly to regulatory data such as CBN, SEC, and many others to ensure the organization is kept abreast of current regulatory events. Moreover, 3CONSULTING is content independent, meaning WE can accept information from any relevant regulatory content provider. Risk, legal, and compliance are able to analyze and assess the information and determine whether remediation activities are warranted. This, for example, can help teams quickly identify company policies and business processes directly impacted by each regulation. They can then determine whether to engage policy and/or process owners using targeted compliance assessment campaigns and action plans to address compliance issues.

FEATURES

  • Regulation Repository

  • Time Based Compliance

  • Workflow

  • Automatic Reminders

BENEFITS

  • Alert the changes in regulations

  • Evaluate and measure organizational compliance

  • Perform risk assessment on compliance requirements

  • Reporting

Our solution enables organization to take control and manage regulatory requirements and compliance obligations. The solution will allow users a holistic view on the organizational context in relation to the changing regulatory environment and therefore minimizes the risk of costly, public compliance failures and reputational damage. Role based distribution of regulations, impact assessment, and monitor compliance risk profile. Learn more here...

At 3Consulting, we believe in innovative disruption to bring you the best of financial technology through our certified financial and technology experts to provide you with the next innovative solution to that problem in the financial space.

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