Regtech is increasingly innovative and ‘solution orientated’.
Leading firms have developed regulatory change and regtech strategies with clear target-operating models. Deployment can reduce the cost of compliance by 15%–20%. The benefits are clear.
Effective change frameworks intertwined with a regtech strategy deliver benefits.
Seven areas have more mature solutions for universal banks, applicability, integration with regulated financial services organisations, and more tangible financial benefits.
1 Horizon-scanning optimisation
2 Regulatory interpretation (digitisation)
3 Regulatory reporting (reg2report)
4 Regulations mapped to policies and controls (reg2controls)
5 Governance risk and compliance tools
6 Financial crime (anti-money laundering/know your business/know your customer)
7 Tax reporting
Cost pressures - regulated firms are under increasing cost pressures to lower the CTB (cost of regulatory change), RTB (1LOD and 2LOD), FTE, and manual effort.
Regtech maturity - regtech firms have matured significantly in the last two-three years: with more innovative products and financial services applicability.
Data models - improvement in data models, and inter-operability and access between regulators, regulated firms, and technology firms (FCA DRR).
Regulators - regulatory burden remains, placing greater emphasis on regulatory reporting, regulatory change, and quality of data (Dear CEO letter). Open banking and open finance are indications of growth.
Regtech 2.0 - regtech will become a competitive advantage for technology savvy compliance and risk departments of the future. Significant utilisation of regtech in 2020-2023.
How we help our clients:
We can help design a regtech strategy that accelerates an organisation’s successful adoption of regulatory technology.
The insight we have gained from our own Grant Thornton regtech taxonomy and regtech index places us in the best position to help organisations crystalise their requirements and support them in their selection process of the most suitable technology solution.
We are very well familiar with regulatory expectations and common pitfalls when deploying regtech solutions. Our experience is in supporting firms to deploy regtech’s which result in tangible sustainable benefits. We can help firms navigate through the complexities of customising and integrating regtech solutions.
We develop the target operating model to ensure that the regtech technology software is effectively customised and enabled, optimal user adoption, capability development, governance and underpinning
processes and procedures.
We know when a regtech strategy is working and delivering the desired
outcomes. Our deep experience provides us with the necessary methodology and toolkit to assess the effectiveness of the regtech
solutions that are being implemented.