Cutting through competitive chaos in regtech

Cutting through competitive chaos in regtech

Mike O’Keeffe

UK General Manager at Corlytics

Views 199

Cutting through competitive chaos in regtech

13.05.2019 07:45 pm

The global regtech market is exploding because there are big problems to solve. Banks and financial services firms are grappling with an overwhelming volume of complex regulatory change and 2,500+ compliance rule books globally. With the cost of compliance to the banking industry estimated to be $270 billion each year, firms need help to the root causes of regulatory risk as efficiently as possible.

However, the plethora of new tools and technologies to tackle these challenges has become difficult for customers to navigate. Some regtech firms are simply following the money and rushing new solutions to market, without an in-depth understanding of the regulatory landscape – not to mention the intricacies of the industries they are serving. For a very small minority, regtech has been reduced to a trend or a buzzword, when it is in fact a movement. A movement which has the potential to transform the banking sector.

Consolidation will happen in the next 2-3 years, but right now banks and financial services firms aren’t sure which direction they should be looking to drive successful adoption. Here are three ways organisations can cut through the market noise and identify solutions which will work for them:

  1. Get to know the team behind the tools

When considering different vendor propositions, investigate the people as well as the technology. You could have the most seasoned technologists working on a potential solution, however it’s unlikely they will be able to fully solve regulatory challenges without working with legal and regulatory analysts, data scientists and risk practitioners. A 360-degree picture is critical. Also, take note of where the team is based. If you’re running a global business, you will benefit from a global team with feet on the ground in your core markets.

       2. Explore established partnerships

Look for evidence of close collaboration with major regulatory authorities. This is a sign that the regtech business is established, mature, and can be trusted to tackle the biggest risk for the world’s top 20 banks today.

       3. Focus on successful adoption

Conversations with vendors should never just centre around why their technology is the best on the market. It doesn’t matter if it is the best black box if a vendor is not skilled in getting it to work for the customer. The focus needs to be on how adoption can be successful, sustainable, and not disruptive to an organisation. 

This is a dynamic time for the regtech market. There is still huge potential for new and innovative solutions to tackle complex compliance challenges – and competition is, of course, a good thing to drive innovation. Yet until market consolidation happens, banking and financial institutions need to be able to cut through the noise. Reducing overheads and improving stakeholder outcomes means staying focused on the things which matter: team, relationships, global reach and a focus on successful adoption.  

Latest blogs

Reza Rahmani Fard FIME

Beyond PSD2: Being proactive in the age of open banking

Open banking isn’t just a European pursuit. For those under PSD2 - the European regulation mandating banks to open-up their back-end to third-parties – the urgency to deliver these services is clear. But players further afield shouldn’t avoid Read more »

Asavin Wattanajantra Sage

AI & Automation: benefits for business & industry

Are you worried that robots will take over the world? You’re not alone. A world where robots are self-aware and can think for themselves is a favorite theme of filmmakers, writers and sci-fi fans. Characters like See-Threepio from Star Wars, Optimus Read more »

Isaac Palmer Flashpoint

ATM Shimmers Supplanting Skimmers

Automated tellers—literal money machines—cannot help but be a target for crime. Most are filled with money and run on software that contains exploitable security vulnerabilities or hardware that can be tampered with by hackers. Or bad guys can try Read more »

Patrick Bermingham Adflex

APMs for B2B payments – buzzword or next big thing?

To understand why APMs are become increasingly important in B2B payments, let’s first clear up some confusion: What are APMs? APM is a catch-all term to describe any payment method that does not require the use of a credit or debit card. There are Read more »

Thomas Pintelon Capilever

How liquid asset based lending brings benefits to both banks and their customers

Imagine you have a short-term cash need [university fees for your kids] but you do have some long-term bonds in your investments portfolio. Wouldn’t it be great if your bank allows you to temporarily block these assets and get a short term loan Read more »

Related Blogs

Mark Smith Ayming

How FinTech, RegTech and InsureTech Businesses are Continuing to Shape the Financial Services Landscape

Within the last decade there has been a pattern of people quitting their jobs in big financial services firms to launch start-ups, often in partnership with technologists similarly intent on shaking up a niche area with new technology. FinTech start Read more »

Shakir Ladak Alpha Insight

Going With the Flow – How the Surge in RegTech Innovation Will Lift the Burdens of Compliance for the Financial Sector

Until the financial crisis of 2008-09, the financial services industry had enjoyed almost two decades of unprecedented growth and profitability.  It had embraced globalisation with a succession of glittering mega-deals.  Unfortunately, a series of Read more »

Jürg Truniger Appway

Why Deloitte’s New RegTech Solutions Are a Game Changer

Banking operates in an increasingly complex environment. Due to the increased need for compliance, margins are diminishing and costs are rising. To stay competitive, banks are looking at various ways to differentiate themselves, whether by Read more »

Anna Bennett Monitise FINkit

RegTech-Ready (Steady, Go): A Guide To RegTech for Beginners.

RegTech – a buzzword used commonly over the last year in FinTech and Finance - but what is it, who is it for and what does it do? Should you implement it? Do you need it? Just some of the dozens of questions I’ve been asked over the last six months Read more »

Matt Gibbs Linedata

MiFID II and the rise of RegTech in 2017

Matt Gibbs, Product Manager at Linedata, the leading international software and technology provider, comments on the key regulatory challenges facing financial services organisations in 2017, and how a more holistic regulatory technology approach Read more »

Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel