Today’s competitive environment and post-crisis regulatory costs are forcing banks to get leaner and more innovative, leading to growing interest in emerging regulatory technologies – commonly referred to as RegTech. More than technology focused on addressing risk and regulatory challenges, RegTech makes banks more cost-efficient by using machine learning, advanced analytics, and natural language processors to gain insights into business lines and customers. In addition, many RegTech solutions leverage machine learning and advanced analytics built in the cloud to quickly analyze large amounts of data, making it easy for banks to efficiently assess potential compliance issues
Although most banks are aware of the benefits of RegTech, they have been reticent to adopt solutions due to the seemingly nascent state of many of the offerings. Forward-thinking banks, however, are working directly with RegTechs to develop solutions specific to their market and organizational needs.
This Regulatory Brief discusses (a) how banks are using RegTechs, (b) the current RegTech landscape, and (c) what banks should do to prepare for RegTech.
A publication of PwC's financial services regulatory practice
Financial Services Leader, PwC US