This week I was lucky enough to have first sight of the eagerly awaited Burnmark research report on RegTech for Information Governance (view the webinar and get the report free).
Evidently, large global banks and other financial institutions have transformed into a hive of regulatory activity. Chief Data Officers, Records Managers and those responsible for governing information assets at global scale are consumed with heightened focus on privacy, and the pervasive effect this is having on information and data management practises across the enterprise.
But it’s not all bad news. One infographic that especially caught my eye was a chart indicating what would help these firms to achieve their information governance goals, in the short term.
While 70% of respondents state that they require more budget to support their work, I was encouraged to see that top priorities for most financial institutions are to automate processes around governance (80%) and to deploy better technology (60%), rather than simply adding more people to the Compliance team.
This news was somewhat inevitable. Since 2008, many of the largest financial institutions increased their compliance staff ten-fold in the wake of the global financial crisis, yet have still fallen foul of the Regulators and incurred fines running into multiple millions. This is proof positive that manual processes are not only expensive and slow, but they are unable to provide the degree of regulatory intelligence required to tell these organizations which regulations are relevant to their business, and how to avoid compliance gaps. If manual processes were effective, enforcement fines would not have exceeded $321bn in the last five years.
Technology isn’t entirely blameless, either. Researchers also asked respondents to indicate which challenges have greatest impact on their ability to govern data and information assets. Every respondent indicated that legacy systems, which are incapable of handling the regulations, are problematic, with 60% stating that their impact is significant.
My take-away from this important piece of research is that technology – more specifically Regulatory Technology (RegTech) – is the only forward, enabling financial institutions struggling to avoid regulatory breaches to enter a new modern age of efficiency and risk reduction.
Financial institutions know it. Regulators know it. And technology innovators know it too. They have responded with solutions built and delivered in the Cloud for ease of deployment, with open APIs to connect the pipes with pre-existing systems and processes, and with artificial intelligence that is smarter and faster at scale than any human could ever be.
The results of the Burnmark “RegTech for Information Governance” report will be debated in a webinar on 5 December 2018, by report author Devie Mohan, Deutsche Bank’s Global Head of Records Management Lynn Molfetta, Information Management Strategist Matthew Bernstein, and CUBE Founder and CEO, Ben Richmond.