Regulatory Technology as a Compass

Understanding the imperative for RegTech

When organisations become more interconnected, the regulatory environment governing them grows increasingly complex. Firms face the challenge of maintaining security while supporting economic development, which requires innovative solutions. Regulatory technology (RegTech) provides the agility needed to adapt, offering tools to streamline compliance processes, enhance data management, and strengthen risk assessment capabilities.

A recent Thomson Reuters survey revealed that 61% of corporate risk and compliance professionals consider staying current on regulatory changes their top priority for the next 12 to 18 months. This urgency is underscored by stringent regulations such as the EU AI Act, which imposes significant fines for violations related to prohibited systems—up to £35 million or 7% of worldwide annual turnover, whichever is higher.

These penalties highlight the critical need for organisations to adopt RegTech solutions as they navigate the increasingly intricate regulatory landscape. By leveraging these technologies, firms can better position themselves to effectively meet compliance challenges while fostering both innovation and growth.

Embracing technological innovation

The accelerating pace of technological change presents both opportunities and challenges for financial institutions. According to industry data, the global RegTech market is projected to reach USD 21 billion by 2027, reflecting a compound annual growth rate (CAGR) of nearly 20%.

By leveraging advanced technologies such as artificial intelligence and machine learning, RegTech solutions can automate routine compliance tasks, freeing up resources to focus on strategic priorities. This technological embrace not only reduces operational costs but also enhances the accuracy and timeliness of compliance reporting.

Risk management is also crucial for regulatory compliance, and RegTech solutions are ideally suited to enhance this capability. Effective risk management relies on robust data aggregation and analysis. As organisations manage vast amounts of data daily, RegTech tools provide sophisticated analytics, enabling firms to identify and mitigate risks more effectively.

This proactive approach to risk management is essential in a landscape where regulatory expectations are continually evolving. By leveraging RegTech, organisations can stay ahead of potential risks while ensuring compliance with dynamic regulatory requirements.
 

Driving Strategic Transformation

The need for organisations to prioritise strategic transformation in response to regulatory changes is evident. A study by Deloitte found that 87% of surveyed financial institutions view RegTech as a significant factor in their strategic initiatives.

As a key enabler of transformation, RegTech provides the necessary tools to integrate compliance into broader strategies, allowing firms to align regulatory goals with business objectives and unlock new growth opportunities.

In today's data-driven landscape, these tools offer robust capabilities for data management and analysis. High-quality data is essential for ensuring compliance and supporting strategic decision-making. RegTech tools facilitate seamless data integration, providing firms with real-time insights vital for informed choices.

Additionally, the incorporation of Generative AI in RegTech solutions enables predictive analytics, allowing organisations to anticipate regulatory changes and adapt their strategies accordingly.

Introducing End-to-End Solutions

In response to these needs, Deloitte presents RegMiner, a cutting-edge solution aimed at simplifying regulatory compliance. RegMiner empowers firms with real-time regulatory updates, advanced analytics, and a comprehensive compliance framework.

It perfectly aligns with the demand for agility and strategic foresight, enabling organisations to navigate the regulatory complexities with confidence. The solution is powered by the strong combination of Deloitte's global network of regulatory experts and cutting-edge technology driven by GenAI.

RegMiner streamlines regulatory change management and seamlessly integrates with existing conventional compliance processes as shown below. Its robust analytics can empower your organisation to assess the implications of changes proactively, ensuring agility and resilience.

Benefits of implementing RegTech:

• Enhanced efficiency and cost reduction - RegTech solutions automate compliance processes, reducing manual intervention and operational costs.
• Improved accuracy and reporting - By standardising data collection, RegTech enhances the accuracy and integrity of regulatory reporting.
• Agility and adaptability - Designed with agile architectures, RegTech allows firms to swiftly adapt to changing regulatory requirements.
• Enhanced risk management - RegTech provides real-time monitoring and predictive analytics for proactive risk identification and mitigation.
• Increased transparency and accountability - With features like audit trails, RegTech ensures transparency and accountability, boosting stakeholder confidence.

The way forward

As the industries continues to evolve, the adoption of RegTech solutions is no longer optional but imperative. Leveraging RegTech enhances compliance, drives strategic transformation, and manages risk effectively.

With RegMiner, firms are equipped to meet these challenges head-on, ensuring that regulatory compliance is not just a requirement but a strategic advantage. By embracing the power of RegTech, you can position yourself at the forefront of innovation and regulatory excellence.

Get in touch with our team to see what we can do for your organisation.