The Thomson Reuters® Regulatory Intelligence survey and report Fintech, RegTech, and the role of compliance in 2023 explores the way in which firms are addressing the deployment and management of technology solutions.
The report points out that digital transformation is a continuum, with many benefits but also some challenges along the way.
There remain huge benefits to be gained from the successful deployment of technology, including the development of better risk management tools, the automation of processing, improved tracking of regulatory change as well as the streamlining of data governance, all of which should free up time for more compliance value-add tasks.
-Fintech, RegTech, and the role of compliance in 2023
The report also states that driven by forces including the COVID-19 pandemic and an active regulatory environment, financial services firms have adopted technological solutions at speed in recent years. The survey found that 50% of respondents said that they have either fully or partially implemented a RegTech solution, up from 38% in 2021. Global Systemically Important Banks (G-SIBs), which the report notes are a leading predictor of future behavior in the industry, have embraced RegTech even further, with nearly 90% having implemented a solution in part or in full.
The top activities surveyed that firms would like RegTech to help with include:
- Facilitate compliance function tasks like horizon scanning and training
- Increase accuracy of regulatory reporting
- Enhance decision making for the risk and compliance function
- Evidence accountability regime compliance
- Improve record keeping
Integrated data is key
According to the report, firms must embrace the fact that data is a vital strategic asset, and from there build a business-wide approach to data governance. A Compliance Officer from the United States surveyed said that “the ability to compare and organize data for the benefit of multiple departments” was the greatest benefit expected for their firm from Fintech over the next year. Other benefits include better visibility of risk in a remote or hybrid working environment and better recordkeeping.
A centralized approach to data provides cohesive and consistent compliance across the organization.
When data and functionality sit in various systems that are cobbled together, the risk of redundancy, or worse, of critical items falling through the cracks for compliance is high. When you have multiple systems there’s “swivel chair” compliance, where users have to log into one system to get information and enter data, and then switch to another system to reenter the data or perform another task. When firms work across data silos, processes become inefficient and driven by the limits of technology instead of the needs of the organization.
Multiple systems – and multiple logins – also are hard for the user. When employees find it too difficult to navigate systems or don’t even know they have a task to complete, the likelihood of staff effectively fulfilling their compliance obligations decreases significantly.
And from a systems maintenance perspective, starting with multiple solutions and then piling additional capabilities on top will just mean more responsibilities and more issues for the IT team. The survey showed that IT infrastructure and attracting and retaining employees with the right skills is a concern for firms of all sizes when implementing Fintech and RegTech solutions. A compliance system that’s thoughtfully and intentionally designed to be deployed with minimal IT involvement can help alleviate these burdens.
With technology, less is more. Download our white paper to learn how integrated compliance technology should be a cornerstone of the compliance program, eliminating redundancy and gaps, and empowering teams to manage risk more effectively.
Is your compliance solution built on a solid foundation?
To maximize the potential of technological innovation, firms must continually reassess their technological needs and then invest in solutions tailored to the activities of their business.
-Fintech, RegTech, and the role of compliance in 2023
Selecting compliance software is not a one and done scenario. As the regulatory environment and the needs of the organization change – and given the volatility of the financial services industry, they will – compliance technology needs to be evolving right alongside.
A one platform and one partner approach simplifies the equation. Beyond looking at the capabilities and usability of the compliance technology to meet immediate needs, consider what’s down the road once the decision is made:
- How easily will the system integrate with other systems like HR, Operations and the firm's CRM?
- How experienced is the team you’re working with and what does the implementation and integration process look like?
- Can the solution be easily customized to meet unique organizational needs? And after implementation, can on-the-fly changes like form and workflow updates be made without IT or provider involvement?
- How is support handled? What are the hours that customer support is available and how can you access help? Is there a team based in your region?
- Is the solution extensible? Does it manage a comprehensive range of compliance activities and can additional capabilities be easily added?
- How has the company and technology scaled? What does their roadmap look like and how do they share that with customers? And how are customers given the opportunity to give feedback on future product developments?
Download the white paper Getting IT Done - Optimize the Software Selection Process for the Best Outcome for guidance on deciding what compliance technology is the best fit from start to finish.
Whether a financial services firm has a handful of employees or is too big to fail, choosing the right compliance technology is more important than ever.
MCO offers Compliance Built Better.™ Our integrated SaaS platform lets compliance professionals efficiently and cost-effectively demonstrate they are proactively managing the regulated activities of the company, employees and third-party relationships and provide proof of regulatory compliance.
Contact us for a demo and see for yourself today.