The weight of regulation and reporting requirements is increasing across various industries. This has resulted in new technologies and solutions entering the market aimed at easing the compliance burden. In the last few years, hundreds of start-ups have begun to apply digital technology – including APIs, artificial intelligence (AI) and robotic process automation (RPA) to numerous and burdensome tasks related to regulation and compliance.
One key digital transformation is achieved through the use of Regulatory Technology. Commonly known as RegTech, it refers to the management of regulatory processes and compliance through the use of digital technology.
Though pioneered by the financial industry, RegTech is increasingly realising its true potential through application to a vast array of sectors, and therefore its use should no longer be seen as limited to banks and financial institutions only. Having successfully introduced RegTech to the UK Energy sector, Gemserv is making three key recommendations for organisations to consider:
- Re-evaluate the traditional approach to regulatory compliance – in light of new use cases consider digital technology to improve operational efficiency and cost savings to manage compliance and reporting.
- Consider RegTech as an enabler rather than a disruptor – technology developments provide an opportunity for an organisation’s compliance function to reposition its role in the service of its customers and firm’s business. RegTech can be a key enabler to this change, though it may not always be the starting point.
- A partnership approach – RegTech firms tend to work in partnership with their clients. Internal solutions and RegTech must complement each other to capitalise on and increase internal expertise through the know-how and innovation that RegTech brings.
The impact of RegTech and the synergies with initiatives that can be carried out internally is an opportunity to be seized. This paper builds the case for the application of RegTech beyond the financial sector and beyond compliance to score efficiency, costs and competitive benefits.
Download our thought leadership paper: The RegTech Advantage
To find out more about the benefits on RegTech and how it is helping companies across sectors manage compliance burdens more efficiently, please download and read our thought leadership paper “The RegTech Advantage”.