Money laundering, cyber risks, financial crises: Events like these have steadily increased regulatory pressure on the financial sector. The supervisory authorities are therefore demanding more and more transparency on the part of financial companies. This has far-reaching consequences for the strategy, business model, organisational structure and workflows, and the cost structure of the companies concerned.

Financial institutions are faced with the challenge of adapting their compliance monitoring to the increasing regulatory requirements, higher cost pressure and rising data volumes.

Automation instead of manual processes

To be able to meet this challenge, financial actors should manage to break away from manual processes as well as outdated and no longer efficient system landscapes.

Demand for RegTech solutions is increasing

RegTech vendors can support this. They help business entities comply with regulatory requirements and manage risks with greater efficiency and lower costs than was possible in the past.

Examples include digital customer onboarding, the use of artificial intelligence to comply with due diligence requirements, and the electronic monitoring of numerous communication channels through intelligent speech recognition. In addition, the solutions of the RegTech providers can process large volumes of data and unstructured data, which they then in turn make available to users in real time in a structured manner by means of clear dashboards.

The right RegTech solution for your business entity

But the choice of providers is large and the selection of the right solution for one's own business entity is therefore not easy. To give financial companies a better orientation in the RegTech market, we have identified segments into which we divide the various providers and solutions.

RegTech DNA

This facilitates the selection of the right technology provider/RegTech for the individual requirements. The chain of requirements for financial service providers and their solutions by RegTechs below forms the basis for the RegTech DNA.

Chart (in German only)

RegTech DNA

The advantages of RegTech for the future viability of financial service providers:

  • The customer experience is improved by a greater focus on interaction with the customer.
  • Costs are reduced by optimising the most expensive resources of financial service providers.
  • Compliance is optimised through data consistency and control quality.

Need to talk about RegTech? Our experts look forward to sharing with you. Write to us.