What do the terms efficiency, transparency and respect mean in RegTech? That’s what the latest episode of the RegTech 20:20 podcast, from Encompass, asks.
As solutions disrupt different parts of the RegTech ecosystem, financial institutions have adapted, and varying degrees of digital transformation have started to take place. It is important to understand how RegTech is playing a part in the evolution of businesses, as this month’s guests, Kent Mackenzie and Sean Moore, who work within the risk advisory practice of professional services network Deloitte, and Anastasia Dokuchaeva, Head of Partnerships at ClauseMatch, delve into.
A key topic of conversation is the complexities of change within the regulatory sector, with Kent saying: “it’s an environment that’s ever shifting” and since the pandemic, “several hundred new pieces of regulation have come out to help us navigate through the complex situation”.
Considering the true meaning of 'efficiency, transparency and respect', he adds: “There are ways in which you can drive efficiency, some of it does include elements of AI and machine learning”, before going on to say that regulators are now demanding transparency. In terms of respect, Kent suggests that “when you bring in automation, you have got to do so with respect to the existing structures that already operate in the business.”
Agreeing with Kent, Sean, who gives an insight into the Asia Pacific perspective, mentions that respect is very much about “customers and making sure we meet community expectations” and touches on the connection between some of these new regulation technology and wider issues.
“…assuming that the regulations that we’re trying to manage ultimately are helping protect the economy itself and the banking industry, only in a well-functioning, well-efficient finance sector is the broader economy enabled to be successful”, he adds.
Later in the episode, we hear the experiences and opinions of a RegTech provider, as Anastasia, after sharing the aims of ClauseMatch, gives her thoughts on enabling transparency and efficiency.
She tells host Alex Ford, Encompass’ VP, Product and Marketing: “Efficiency is a big topic of discussion and [you can] really leverage technology in order to streamline processes to remove administrative burdens”. Anastasia discusses how things have changed since the financial crisis, calling out that transparency has become a big point of focus in order for organisations to achieve, which adds to the growing conversation suggesting that, now more than ever, FinTechs need to lead on consumer transparency.
When asked about the general business attitude to RegTech adoption, Anastasia replies: “I think, in the year of 2020, we are globally equivalent - every market is on par and at the same level of adoption and excitement around regulatory technology”.
Just like technology, it is anticipated that RegTech will continue to develop along with innovation, market participants and business needs. This podcast episode provokes an important discussion analysing where we are in that journey and what the future may hold.
You can listen to the full episode at https://www.encompasscorporation.com/regtech2020-podcast/ or on your favourite podcast player.