In today’s fast-paced and rapidly changing environment, the financial services industry is challenged to find innovative ways to reach strategic growth objectives, further reduce compliance cost, and ensure effective management of regulatory change. As the industry transitions from eight years spent focusing on cost containment, remediation, and new regulations in a low interest rate environment, firms are now putting greater emphasis on their growth agenda. This includes acquisitions, new product development, cross-selling products and services, and improving customer service, which have all re-emerged under a digital technology lens as the industry’s highest priority. Regulators and central banks are also seeking ways to leverage new technologies to meet public policy objectives and complex supervisory requirements. For many organizations, leveraging technology is the answer.
While Financial Technology (FinTech) has become a core focus for all financial services players over the past decade and many banks have established their own labs, formed partnerships, and taken FinTech companies into residence programs, the focus is now zooming in on Regulatory Technology (RegTech) solutions.