“… banks have shifted from simple report submission tools such as Jack Henry to more robust data aggregation and report generation tools such as Axiom, WKFS and Lombard. Since the financial crisis, EY estimates that at least 35 of the top 50 BHCs and IHCs have implemented a report automation tool for regulatory reporting.”
EY
As regulatory landscape gets more complex, Banks are looking at tech solutions to comply with regulatory requirements better. Tech solutions for regulatory compliance, known as Regulatory Technology (RegTech), are growing rapidly.
RegTech solutions are predominately used in regulatory monitoring, reporting, and compliance functions. They provide operational efficiencies; have better accuracy/data quality in reporting; deliver effective monitoring and control of compliance; support faster and timely decision making. Many of these are software-as-a-service (SaaS) solutions that are cost-effective, easy to integrate, and updated frequently to meet changing regulatory landscape. There are innovative RegTech solutions built taking advantage of new and advanced tech like machine learning, advanced analytics, APIs, edge AI, blockchain, etc.
RegTech solutions provide various capabilities across the regulatory compliance mgmt. lifecycle. Some of these capabilities include – (i) real-time monitoring and auditing of transactions, (ii) identity mgmt., anti-fraud screening and detection, and counter-party due diligence (e.g., KYC and AML), (iii) automation of regulatory reporting tasks, (iv) data handling capabilities, (v) adv. analytics, rich and visual insights, and transparency, (vi) proactive approach to compliance and risk mgmt. by assessing risks based on current regulations and future threats.
Deloitte has compiled a list of RegTech companies along with the technologies and solutions they are offering. See more here.
CforXL 