• Rohini Gupta , Director and Lead Regulatory Advisor at FinregE


• 03.11.2022 03:30 am
#RegTech

As digital technologies evolve at a fast pace, organisations are having to work harder than ever to prevent lagging behind in a competitive market – they constantly need to innovate and adopt new ways of operating.

However, this is not always easy to do as businesses must adhere to their changing landscape of regulations as they innovate and enter into new products/markets to ensure they stay compliant as they innovate. It is often a juggling act between meeting regulatory requirements and adopting the latest digital technologies – this is because fintechs need to modernise and stay innovative whilst sticking to the rules.

It’s a race for fintechs as new technologies arise, and the pressure is on to constantly evolve. But this can be a risky game in a heavily regulated industry as companies face fines from regulatory bodies for non-compliance. Furthermore, businesses need to not only innovate all the time but find smart ways to mix them into their current processes and stop the threat of cyber-attacks too – while ensuring every single change in technology is compliant.

So how can fintechs strike the right balance between growing and innovating while staying on the right side of regulatory requirements? Using regulatory advisory services is a great way to ensure you can meet your global regulatory and compliance requirements while successfully meeting your business and innovation objectives.

Business Benefits Of Regulatory Advisory Solutions

Improved Efficiency

Regulatory advisory services can help guide and support fintechs to a sustainable state of compliance as they continue to innovate and grow.  They can deliver efficiencies in helping them keep track of fast-changing regulations, understand the requirements under the regulations, develop an action plan to implement regulations and evidence compliance with them. Regtech-based advisory solutions can also help cut down on financial fraud as the platforms are able to handle huge amounts of data and spot any possible crime as well as assist with compliance procedures like credit checks and underwriting.

This streamlined approach cuts out physical processes and human error, making the business more cost-effective as well as compliant.

Improved Communications

To remain compliant, businesses need to communicate clearly – departments and regulatory teams must work together to ensure coordinated processes. And to be able to maintain an organised audit trail of communications. Lack of accountability, communication and documentation can lead to risks becoming stagnant when it needs to be inventive.

Regulatory advisory systems can automate tasks and make it clear what each department does so they can synchronise plans. They can provide automated workflows making it easy to communicate enterprise-wide within one single platform and manage communicative responses against time constraints. The latest technologies in advisory solutions can also help manage regulatory affairs and communication with external parties such as regulators and supervisors in a more efficient, effective and clear way. This harmony makes the overall operation of the business more efficient and effective.

Improved Monitoring

Greater monitoring leads to better processes and supports superior innovation. The majority of RegTech solutions adopt advanced technologies, using tools like cognitive machine learning to gain an edge against competitors.

These technologies boost monitoring ability, making it easier to spot any risks in compliance management. This reduces the likelihood of being non-compliant by accident and being fined as a result.

How To Balance Innovation & Regulation

Using regulatory advisory solutions helps businesses to achieve the balance between being innovative and being fully compliant. Using new innovative regulatory advisory platforms, fintechs and traditional financial services companies thrive in the face of regulation and change and use it as a means of accelerating their business transformation by not worrying about compliance and being better at it, which in itself presents a competitive advantage.

The majority of RegTech platforms use advanced technology like AI and blockchain to enhance business operations, cutting costs and boosting overall efficiency to make achieving the right balance much more straightforward. Technology is fast becoming a vital part of regulatory procedures, especially as compliance obligations grow ever more multi-faceted.

Director and Lead Regulatory Advisor at FinregE, Rohini Gupta has 15 years of experience in the banking and investment sectors and uses this knowledge to provide businesses with an array of regulatory advisory services for effortless compliance management.