What to consider
Pilot, pilot, pilot. It’s tempting to direct your compliance team to just “plug in” a RegTech solution. Don’t. Instead, explore a few spots where you think RegTech will pay off, can be deployed quickly, and where new risks are unlikely. Choose a specific use case to address. One area to consider? Technology that improves workflow in regulatory reporting.
Know the roadblocks. Many issues can derail a RegTech integration, whether it’s outdated technology, uncertainty over alignment with existing regulations, or passive resistance from staff. Your team working on a corrective action plan with a tight deadline, for example, won’t be open to conversations about process enhancements. Be aware of the resistance and obstacles you’ll face, create an open dialogue, and work toward a common goal.
Act, don’t react. Financial firms are finally finding room to breathe after a decade of new regulations, but don’t expect the break to last. From the top down, pressure is building to deliver cost savings and reduce risks further by using technology. Executives also expect that insights gathered from compliance will help other areas of the business, and this requires a completely different mindset. Use RegTech strategically. It can address these needs and others.