Getting to know your data
As regulation and compliance expands, RegTech becomes more encompassing and established than ever before. The evolution of RegTech has resulted in the emergence of an environment where banks must not only know their customers, but they must also know their data. Crucially, they must also know how to use their data appropriately and take care of it.
This is largely a result of Open Banking and GDPR. Open Banking mandates that – with consent – customers’ details can be released to relevant third-party providers. GDPR governs data privacy and mandates how customers’ data should be used and stored. The crux of the issue is whether customers will permit their data to be shared and used, and whether financial institutions can be trusted to keep it safe.
The solution… RegTech
RegTech platforms are designed to automate, decrease the costs and up the efficiency associated with regulatory compliance. This can range from something that provides simple automation to something that has high levels of computational power, providing analytics and monitoring in real time for large and unwieldy data sets across the enterprise. RegTech solutions also have the power to improve customer experience and increase revenue through automating and streamlining processes like AML and KYC. All of this points to a safer market for end consumers, which ultimately results in a heightened levels of customer satisfaction.