Data and analytics are being used to power RegTech solutions and make them more effective . The RegTech industry is even expected to grow 200 % through 2026 . How is technology fuelling its growth and making RegTech more effective ?
Keren Ben Zvi Technology is at the heart of RegTech ’ s rapid growth . Advanced data analytics , AI , and machine learning are enabling RegTech platforms to automate complex compliance processes , making regulatory reporting faster , more accurate , and cost-effective . These technologies allow real-time monitoring of financial transactions , early detection of fraud and predictive modeling for regulatory risks . As regulations become more complex and global , RegTech solutions that leverage powerful data analytics will be essential in helping financial institutions meet compliance requirements while reducing manual overhead , ultimately driving the sector ’ s anticipated 200 % growth by 2026 .
Jamie Hutton Data and analytics technology is essential for addressing existing and emerging risk effectively as well as managing the cost of regulatory compliance . Taking anti-money laundering compliance and investigations as an example , Financial Intelligence Units need data-driven , intelligent tools to quickly and optimally connect the dots across datasets .
One example is Standard Chartered bank for whom we help overcome what they call ‘ chasing the innocent around the system ’. Banks like these need to identify criminals while ensuring seamless banking for their millions of legitimate customers while maintaining compliance with strict regulations . They achieve this by unifying their data with Entity Resolution technology and put it in context with Knowledge Graphs . This gives their investigators the ability to query up to seven years of transactional data in context to uncover a complete , holistic view of customer transaction networks and their counterparties .
Understanding counterparty risk is now essential for FIs to comply with the latest sanctions regulations . In December 2023 , the US Treasury passed a new Executive Order requiring banks to know the risk attached to all their clients ’ counterparties to comply with sanctions regulations .
Until then , banks needed only to screen their direct customers and their customers ’ transactions against watch lists . While the regulation is US-based , because 70-80 % of the world ’ s transactions are made in USD , it ’ s binding around the world . Without the latest Entity resolution technology , organisations will struggle to mitigate this risk and be compliant .
112 December 2024