Interview Day #3 kicked off and it was RegTech Day!
In a world of evolving regulation and even faster evolving technology, we loved seeing the solutions that blend the two worlds to give our people and businesses confidence in action.
This Stream spotlight will give you an inside scoop on all the things we are talking about in Regulation Technology…
RegTech: Keeping Institutions Safe, Resilient, Compliant
The volume of regulation that the financial services industry has been subject to has increased significantly since the financial crisis of 2008/9. Continuing to respond to increased regulatory expectations demands a new approach to Compliance Technology and increased use of Data & AI.
Within the UK, a critical market for financial services, the statistics speak volumes – a substantial 40% reduction in compliance costs has been achieved where RegTech has been adopted.
RegTech can spearhead this change. Projections indicate that the global RegTech market is poised to scale remarkable heights, reaching a staggering $16.2 billion valuation by 2025, exhibiting a compelling CAGR of 20.3%. Within the UK, a critical market for financial services, the statistics speak volumes – a substantial 40% reduction in compliance costs has been achieved where RegTech has been adopted.
We foresee RegTech companies spearheading the resolution of critical challenges entrenched in the global and UK financial services sector.
First and foremost is the critical realm of Regulatory Compliance and Reporting. The financial services industry, though resilient, faces an intensified scrutiny of longstanding supervisory concerns regarding the sustainability of certain banks’ business models. Navigating this intricate landscape, characterised by more than 70 impending regulations, mandates a technological revolution to adeptly steer through varied jurisdictions advancing at diverse paces.
Furthermore, the domain of Anti-Financial Crime beckons attention. For example, RegTech has delivered global reduction of fraudulent activities by a notable 40%. In the UK, where fortifying financial crime prevention stands as a paramount goal, RegTech emerges as a formidable ally.
In the intricate tapestry of Risk Management, the focal point revolves around the consolidation of conduct and data utilisation. The strategic incorporation of RegTech, coupled with data and analytics, is destined to be foundational, fostering compliance by design. This integration not only enhances operational resilience but also introduces operational efficiencies to the tune of 25%, thereby facilitating a more responsive stance towards regulatory changes.
Anticipation brews for the Financial Innovation London (FIL) 2024, where we eagerly look forward to engaging with emerging RegTech vendors. The prospect of exploring how these candidates navigate the challenges confronting the financial services industry, such as swift regulatory transformations, ensuring organisational and customer safety, fortifying resilience against the backdrop of unpredictable geopolitical risks, all while preserving profitability for stakeholders, fills us with excitement and optimism.
Heather Adams, Managing Director, UKI Risk Lead, Global Co-Head Risk and Compliance, Accenture
Vishnu Saraswathi, Risk Senior Manager, Accenture
Keep an eye out for some exciting RegTech offerings as we reveal our FinTech cohort for 2024!