January 17, 2023
Estimated reading time: 4 minutes
What is RegTech?
RegTech, otherwise known as regulator technology, helps financial services firms close compliance gaps in their regulatory change management process. It has been around for quite some time but when did RegTech become so important, and what can it do for your firm?
Background on RegTech
Even though ‘RegTech’ was first coined as a term by the FCA in 2015, it was actually ‘invented’ long before. Its origins were from the year 2000 when there was a massive onslaught of new regulations. The volume of regulations brought on the creation of regulatory technology (RegTech) solutions for financial institutions.
There are two problems that RegTech helps to solve.
Firstly, the sheer number of guidelines and updates that different global regulators publish can be difficult to keep up with. RegTech helps to identify exactly what’s relevant to your business and can filter out the noise – the regulations that don’t apply to your firm or industry.
Secondly, investing in RegTech can help firms to avoid crippling fines, which were hundreds of millions in 2021. The penalties for regulatory gaps can be costly for companies. Thus, RegTech is here to make firms feel confident with their regulatory change management process.
Which industries leverage RegTech?
In a wider context, RegTech solutions can be used in a multitude of industries. From monitoring, regulatory reporting and compliance, RegTech is currently used in the legal industry, financial services, healthcare and food manufacturing.
In this blog, we will be focusing on how RegTech is used in the financial services industry.
Each RegTech company uses complex machine learning algorithms and artificial intelligence (AI) to reduce the risks associated with financial services by meeting regulatory requirements.
RegTech capabilities could help banks to automate their Know Your Customer (KYC) framework to prevent financial crimes such as money laundering and terrorist financing. Any gaps in the regulatory change management process will be tracked and flagged to the compliance teams so that they can investigate discrepancies.
Some of the key regulations we’ve seen in recent years focus on the likes of:
RegTech programs use real-time verification techniques to track information and flag anomalies with compliance officers.
The overall purpose of RegTech is to minimise the costs associated with regulatory gaps, decrease financial crime and uphold your company’s reputation.
At CUBE, RegTech is our bread and butter. Regulatory change in the financial world is fast and unrelenting – and hard work for businesses to make sense of, especially when they are operating globally.
RegPlatform: regulatory intelligence for Enterprise Banks
CUBE RegPlatform was built with large-scale financial institutions in mind. This consists of companies that have dedicated compliance teams, work in multi-jurisdictions and require a smooth flow of regulatory management.
RegPlatform’s core modules:
- RegProfile: builds a regulatory profile for your business based on your specific regulatory requirements.
- RegBook: get access to all of the data you need at a snap of the fingers.
- RegMap: automates the mapping of regulations and compliance requirements to your policies.
- RegInsight: horizon scanning technology to ensure that you are on top of regulatory updates and new rules.
Firms can include or disclude modules of their choice to build a customised regulatory dashboard. It’s about what’s relevant to your business.
CUBE also offers modules such as RegFlow (to build your own workflows), RegReport (for instant reporting capabilities), RegConnect (to integrate with your other programs) and RegDashboard (to customise your display).
Businesses that need to consider conflicting regulations from different areas of the world can manage their entire enterprise-wide compliance with RegPlatform. Plus, the unique horizon-scanning technology puts your company before its competitors; with a tailored regulatory inventory that’s relevant for your team.
Is the RegPlatform right for you? Get in touch with the team to demo the platform here.
RegAssure: intuitive, flexible regulatory dashboard
Not quite at the world-domination phase yet? That’s okay, RegAssure could be the best fit.
It removes layers upon layers of manual checking to provide a smooth, automated flow within your regulatory management processes. This leads to watertight compliance for your people, who can focus on the regulations that matter most.
RegAssure allows your business to thrive in a highly-regulated environment, gaining visibility over changes and updates so that you can manage the risks. What’s more, you get access to real-time data and information to close the gaps in your knowledge and remove the risk of human error.
Is RegAssure the ideal solution for your business to meet regulatory challenges? Get in touch with the team here.
Keep ahead of emerging hemp regulations and guidance by speaking to CUBE.