Written by Jason Morris on Thursday March 22, 2018
The ever-growing regulatory demands being placed on firms – GDPR being an example of a huge change that is almost upon us – means that the technological and automated solutions on offer to meet these requirements are becoming more of a necessity. Solutions that are able to combine the complex information held by a firm with data from, say, previous regulatory failures, can help predict potential risk areas for the firm to focus on in the future. This is RegTech in action and has the potential to save a firm time and money, and also reduce risk.
Unsurprisingly, RegTech is now one of the most talked about innovations in the financial services sector. An article recently listed the 100 most innovative RegTech companies illustrating the size to which this sector has grown.
Most of the top 100 RegTech solutions listed are closely linked to the more dominant financial markets. For example, almost half are located in either the UK or the US, but the issue is a global one and the solutions available have, in the main, global reach.
However, it’s the added influx of FinTech that has caused the incumbent population of the financial services industry to sit up and take notice. Disruption is a clear and present threat to this community and the threat centres on innovation born out of the FinTech arena.
Results of a survey involving 1,308 financial services and FinTech executives demonstrate the growing impact of FinTech in the financial services industry.
Customer retention is clearly an essential area for incumbents to address, particularly around payments, banking, insurance and wealth management. What are the most important areas to focus on to address these challenges?
It’s highly likely that the financial services industry will look very different in five years’ time. The influence of FinTech will continue unabated and this will not only provide startups with a significant foothold in the industry; it will also drive incumbents to embrace innovation fully, to embed it in everything they do, and to make it a crucial part of their growth strategy going forward.
Eager to find out more? Join the ICA Webinar Series on 09 April, 13:00 - 14:00 BST and watch The Impact of RegTech and FinTech on the Regulated Sector
Today's operating environment is characterised not only by change but also by the division and instability that both drives and results from such change. For those in the financial sector, the rapid emergence of FinTech and RegTech is attracting increasing attention.
Does this new technology present an opportunity or a threat?
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