Finextra, in association with Pegasystems, a provider of strategic applications for sales, marketing, and services, and operations, has published a new white paper entitled Building regtech into your fintech strategy, which advocates for the adoption of regtech to stay competitive in the digital age.
Disruption is changing the banking industry landscape. Innovative new entrants are arriving to the market with exciting new tech-driven and customer-focused propositions. In contrast, the established industry banks are stuck with ever-more isolated legacy technology and legacy business models. In today’s regulation-heavy environment, the banks face escalating compliance challenges and rising costs just to keep the business operating. Not surprisingly, these banks end up significantly hampered in their ability to respond to changing customer needs and new competition.
Regtech has quickly become another favourite fintech buzzword; but what benefits does it actually offer the industry? In short, regtech, or regulation technology, aims to simplify and speed up regulatory compliance requirements related to onboarding new and existing customers. To explore the opportunities within the growing regtech sector, Finextra, one of the World’s foremost sources of fintech news & information, collaborated with Pegasystems to publish a new white paper – Building regtech into your fintech strategy: Innovating to stay competitive in the digital age. The key focus of the paper is the exploration of how, by adopting a coherent approach to the implementation of regtech solutions, banks become better equipped to leverage innovation coherently across lines of business, and in turn, stay competitive in the ever-changing digital landscape.
The report begins with a discussion of regulation, which it describes as a double—edged sword. Next, the topic of customer onboarding is addressed, and common challenges face are reviewed. The report then looks intro fintech new entrants, and when they can be considered a friend or a foe. In the following section, Regtech is endorsed as ‘the missing link.’ The myriad solutions that fall under the regtech frame are briefly described, with special emphasis placed on the potential of blockchain, KYC, and big data tech solutions. Finally, the paper offers advice toward the integration of regtech, highlighting the importance of thinking cross-jurisdiction and end-to-end.
Want to learn more about the innovative world of regtech? You can read the complete Finextra white paper: Building regtech into your fintech strategy: Innovating to stay competitive in the digital age, by clicking here.
