“Highly effective and inexpensive compliance efforts” — is this a pipe dream?
The Digital Age has brought enhancement after enhancement, transforming and driving an abundance of cutting edge technology in every industry from biological sciences to financial services.
Compliance within financial services has felt like the forgotten child of this global update. And in all honesty, the traditional broker-dealer model — supported by low tech and no tech processes — has served the needs and interests of many up until this point, so why adapt now?
The digital transformation of compliance does benefit the securities industry in more ways than just one. Complysci mentions four major impacts including eliminating time consuming manual processes, gaining insight through smarter use of data, keeping current with regulatory changes, and showing value. Over and over we at Finalis hear the genuine complaints of our partners — and we get it. It’s frustrating having to manage multi-million dollar M&A tech transactions with a low-tech infrastructure.
With this said, it is of utmost necessity to recognize compliance’s evolution in developing risk programs that have already begun to meet future technology requirements and needs.
Regtech has taken almost everything except the compliance and regulatory market by storm.
Deloitte captures this change in direction noting digitization and automation as the “first two dimensions of digital transformation”. Deloitte further adds that when used in cohesion they can “help organize the data from legal and compliance processes in a way that is conducive to data exploration.” This indicates the possibility each of these two dimensions hold by paving way for new data to support insights that may not have been possible before.
KPMG is also quick to note the increasing complexity of the regulatory landscape, citing the digitization of compliance services as “crucial cost-effective solutions”. KPMG considers the forefront of importance to be rooted in the increased “quality of efficiency” and “costs saved” — essentially describing the process of digitization as an opportunity and therefore one that should be welcomed with open arms.
So what are you waiting for? RegTech surely isn’t. It’s time to adopt and adapt to a new way of doing compliance, now. Get in touch with our team to learn more.
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