Jason Hill and Nikhil Shah, financial services experts at PA Consulting, are quoted in The Economist Intelligence Unit’s article on RegTech and managing regulatory data.
The article notes the advantages of regtech and how in addition to saving time, it can add value by helping to manage risk. For example, regtech can introduce regulatory checks and audit requirements at each step of the investing process to make better risk decisions, Nikhil Shah says. These include monitoring portfolios for early evidence of problems like financial crime and even predict operational losses, all of which support regulatory compliance.
The author goes on to look at the rise of regtech and how it also goes hand-in-hand with the ascent of real-time data that can be used to track compliance within firms and provide early alerts for potential shortcomings.
“Those that stick to traditional industry approaches will struggle in the face of the growing flood of real-time data,” Nikhil adds.
The article goes on to say how employees that know how to work alongside technology are required to identify new opportunities to create value while ensuring that the systems are operating properly.
“There’s still a need for experienced staff to check the outputs and ensure the quality of the inputs,” Jason says.
Jason continues: “People will also be needed to design new rules and understand the data requirements for new and emerging regulatory changes. The real benefit of automation is the way it frees experienced staff from mundane and repetitive tasks to focus on the more complex activities.”