RegTech Rising: Compliance as a Service
Abstract
Fintech and RegTech
The regulatory burden facing financial institutions continues to grow and presents significant challenges to incumbent financial institutions and regulators, both of whom need to leverage technology to automate the regulatory process as much as possible.
From the vantage point of capital markets Fintech, RegTech will be a key theme due to a number of key traits of the capital markets, including: leverage; opacity; enormous size; speed; and systemic risk.
"There is growing recognition that the regulatory process would benefit from improved use of data and analytics in order to permit improved macroprudential and microprudential risk management. To that end, strong regulatory support for RegTech has already emerged, in particular from the Financial Conduct Authority, which has made innovation and adoption of RegTech a clear policy objective," says John Dwyer, a senior analyst at Celent and author of the report.