To address challenges in regulatory compliance, Regtech involves adopting technologies like big data and AI. Regulatory standards could change overnight due to market conditions. However, big data can help businesses stay compliant by notifying about the regulatory changes for making necessary adjustments. The use of deep learning to read compliance requirements helps businesses stay on track of the ever-evolving regulatory requirements.
In Regtech, automation is the only key. 2020 and the years ahead will witness rapid advancements in regtech, thereby ensuring accessibility of the data. When it comes to security and data automation, the use of big data is of prime importance as it creates transparency, efficiency, and minimizes risks. The entire process of compliance gets automated, which is still error-prone, manual, and biased. Big data enables better decision-making, thereby reducing complexity.
Regtech could be incredibly powerful in eradicating the gap between regulators and businesses by economically auditing their compliance requirements. With such whooping numbers on the rise, Regtech is expected to reach $76 billion by 2022. The most significant trend we have witnessed is the adoption of big data. Now regulators want to be more agile and get data in different forms. They are looking at data from a different perspective- financial, market risk, accountability, etc.
Regulators are now even more conscious. They want more data faster than before. On the other hand, regulators would want to understand how financial institutes secure consumer data. Previously relied processes won’t work in the long run. In the future, the focus is going to be more on the data assemblage and data management. Regtech firms need to understand the end-to-end lifecycle of their customers to make a positive impact.
Do you think Regtech will find a balance between automation and data privacy?
