Why RegTech is the Space to Watch in 2018 for Financial Services
RegTech is the Space to Watch in 2018 for Financial Services as firms look at ways to gain increased cost efficiencies, increased regulatory control, and continued Innovation.
This is due to a growing list of regulatory requirements in an environment with over 750 global regulatory bodies governing businesses, and a long list of regulations which have thousands of pages to review, understand and apply to their businesses. To name just one example, the U.S. House Committee on Financial Services shows the Dodd-Frank Act to be 2,300 pages long. It’s a massive undertaking for financial institutions to ingest that type of regulation and understand how it applies and impacts their businesses, on top of needing to implement these change management programs.
This increased compliance burden is being supported by technology in an emerging area known as RegTech – a market demand is expected to reach $118.7B by 2020. According to Source Media, US Financial institutions spend more than $70B annually on compliance, with global demand expected to reach $118B by 2020. However, despite this, there is still a considerable gap in their compliance reality with a 2018 Aite Group survey showing that only 2% of firms are fully automated, after which 49% are somewhat automated in terms of their Compliance Technology.
Synechron’s RegTech Accelerators launched in April 2018 deliver six solutions to use industry-leading technology approaches to solve complex risk and regulatory use cases. Contact Synechron to learn more at FinLabs@synechron.com.