Compliance constitutes a major part of banks’ expenditure and new regulations such as PSD2 and the updated GDPR are adding fuel to the momentum of regtech, that strain of fintech that is coming increasingly to the fore.
How is the regulatory challenge evolving, what problems are regtechs solving and how, what roles do AI and cloud play in regtech and can regtechs meet the financial industry’s need for resilience, scale and security? Download the new paper from Finextra, produced in association with Intel, to find out.
Regulation is an increasingly global challenge, with rules in one region very much affecting other regions. It’s becoming a question of standards on a mass scale, says fintech consultant Ghela Boskovich.
“The open banking mandate – to crack open systems and release data for transactions and general data exchange – requires intensive thinking about the standards,” Boskovich says. “One of the biggest challenges comes in setting the right standard from the get-go,” she adds.
Given that 50% of banks’ spending on technology is directly driven by regulation, according to Dejan Kusalovic, Global Head of FinTech Enabling, Intel Corporation, investing in technology to streamline and automate these processes can bring huge cost, risk and efficiency benefits to the table.
As Joan McGowan, Senior Industry Analyst, Celent, says, “There is a top-down push for operational efficiency rather than continued layering of solutions and the addition of compliance staff.”
Find out how banks are leveraging AI and open API technology to automate compliance, how regtech acts as a catalyst for cloud and how to turn compliance into cash.
The ultimate vision of regtech – the “nirvana” – according to Kusalovic at Intel, is real-time regulatory compliance driven by APIs, which give visibility on solutions before they even arise. “Some of the most exciting regtechs are already taking us closer to that vision,” he says.