Let’s face it. Two essential departments – legal and marketing – sometimes struggle to find the right balance. While marketing strives for creativity, legal is, of course, focused on risk mitigation. This can, at times, delay and complicate the agreement process.
But thanks to the rapid growth of regtech, that process will become a lot smoother. If you haven’t heard much about regtech, we guarantee you’ll be hearing a lot more about it soon.
Total global spending on regtech is expected to rise from US$50 billion in 2015 (latest figure available) to US$118 billion in 2020, according to a report by Let’s Talk Payments, LLC. It’s also easy to see what’s behind this global rise in regtech, given how costly and cumbersome the job of managing compliance has become. Research firm Opimas found that global spending on compliance by banks reached close to US$100 billion in 2016, growing from 15% to 25% annually over the past four years.
“Global spending on regtech is expected to rise from US$50 billion in 2015 to US$118 billion in 2020.”
How regtech’s answering the call
Regtech solutions may be the answer for financial services firms trying to keep pace with all this change. To help you understand how, here are three key components of regtech and how it’ll improve marketing-compliance and the overall regulatory process for the better.
Automating tasks with AI
Increasingly, regtech solutions will integrate artificial intelligence (AI) that will automatically learn and improve regulatory processes through experience, without having to be re-programmed or maintained by humans.
For instance, automating simple tasks such as real-time tracking of documentation for non-compliance issues will become more and more possible. This work will also be completed quickly and accurately, potentially saving companies a great deal of time and money.
“Global spending on compliance by banks reached close to US$100 billion in 2016, growing from 15% to 25% annually over the past four years.”
Compliance in the cloud
Cloud computing is an integral part of regtech solutions and will eliminate much of the resources needed to keep track of constantly changing regulations. In a nutshell, cloud-based systems provide financial services firms with ubiquitous access to shared pools of information via the internet.
As a result, these solutions can rapidly respond, integrate and interpret new and changing regulations. It also means that, if a third party is holding and securing your regulatory data, you and your business can save on the costs needed for staying abreast of compliance.
Tackling “big data” through advanced analytics
As technology advances, mining vast data sets related to compliance – better known as “big data” – will become an important issue for your business. Regtech uses advanced analytics that can help deal with these big data issues.
For example, a regtech solution could effectively handle risk-data aggregation needed for capital and liquidity reporting. Working beyond the capabilities of human resources, it could predict regulatory risks and challenges in advance, generate valuable reports and unlock other layers of potential.
“Working beyond the capabilities of human resources, it could predict regulatory risks and challenges in advance, generate valuable reports and unlock other layers of potential.”
Regtech holds much potential for financial firms. The prospects of fewer costs and greater efficiencies should interest everyone affected, from the executive team to investors and consumers.
Contact us today to find out how we can help you with your marketing and investment commentary challenges by phone at 416.925.1700 or 1.844.243.1830, or email at firstname.lastname@example.org.