But most would consider that any cost is more than offset by both RegTech’s automated functionality and the continuous updates keeping abreast of impending regulatory changes.
Most RegTech solutions also deliver the ability to leverage on the expertise of the providers’ team of compliance, technology, and cybersecurity professionals.
The efficiencies of RegTech enables the working hours of compliance staff to be devoted to more customer focussed activities or to investigating cases, rather than spending endless hours manually checking, analysing and compiling laborious and mundane statistics and data on an ongoing basis.
It would be interesting to hear if there are many senior executives in financial services organisations that doubt whether the automated reporting and insight analysis functionality generated by RegTech solutions are not a worthwhile solution.
Harnessing state-of-the-art and cost-effective technology demonstrably delivers productivity gains and this, together with containing costs, are key factors in staying competitive in a financial services market where focussing on customer experience, satisfaction, service and retention are essential factors in achieving sustainable long-term success.
RegTech ticks all the boxes: it delivers efficiency gains, reduces costs, reduces risk and can flag regulatory challenges before infringements occur.
Using it reduces the possibility of incurring fines or penalties for compliance errors and the resultant adverse publicity and reputational damage. Those, as cited by Nick Cook, wishing to ignore the benefits of RegTech may be doing so at their own peril.
Patrick Conroy is managing director of ACA Compliance Group