What is the current state of the RegTech ecosystem? We look at the critical themes and immediate priorities to be considered in 2024.
Grant Thornton is pleased to present the annual RegTech and Regulatory Change Report 2024, which aims to provide industry insights on the regulatory technology landscape within the UK financial services sector. The regulatory landscape is constantly evolving, and firms face increasing challenges in meeting their regulatory obligations.
The rise of RegTech solutions has provided firms with innovative technology solutions to help them manage these challenges more efficiently and effectively. This RegTech and Regulatory Change Report 2024 aims to provide deep insights into the current state of the industry and what you can know.
In this complex environment, understanding what good looks like is difficult even for larger firms with well-established and robust processes. The indication is that open and safe communication on how they compare to their peers is a priority across the industry.
Regtech buyers are indicating the need to navigate complex regulations, such as AI (Artificial Intelligence) and Consumer Duty in a way that allows them to understand what's working well for other firms. This type of open-source environment will offer participants the opportunity to reduce regulatory risk and meet requirements in a more efficient and faster manner in the medium to long-term future.
The top five RegTech ecosystem areas all represent a need for collaboration between the three different personas surveyed (RegTech buyers, RegTechs and advisors). The key takeaway is the need to stay up-to-date with the latest developments in RegTech, and the potential benefits that advanced technologies can bring to the regulatory compliance landscape.
These insights can help inform the development of RegTech solutions that meet the needs of firms and improve their ability to manage regulatory change both in the short-term and long-term.
The data-driven approach provides objective insights into how firms are using RegTech solutions and the challenges and opportunities they present. This information can ultimately help to better understand their clients’ needs and to develop solutions that address their most pressing regulatory challenges.
Navigating the complex regulatory environment is a significant challenge for organisations, and the use of technology is becoming increasingly important for meeting regulatory requirements. The majority of organisations recognise the importance of regulatory compliance and have taken steps to equip their employees with the right tools and support.
The results of this survey highlight the complexity of the regulatory environment, with a majority of organisations rating it as moderately complex, and a significant portion rating it as very complex. By investing in the right technology and tools, organisations can improve their ability to meet these requirements, achieve greater efficiency and effectiveness in their operations, and gain a competitive advantage.
|
The main regtech solutions regulated firms are looking to buy over the next 12 months are:
|
Even though other areas of the regulatory taxonomy have been identified as more challenging, the core elements of regtech are still investment priorities.
The results of this survey show that the most significant factors for buyers include RegTech solutions that can be applied to multiple regulatory problems and more competitive pricing. There’s a clear message from the market, supported by the regulators, that key c-suite buy-in from their peers would create a path for them to invest in a clear RegTech strategy.
|
The main RegTech solutions regulated firms are looking to but over the next 12 months are:
|
Even though other areas of the regulatory taxonomy have been identified as more challenging, the core elements of RegTech are still investment priorities.
Harnessing the power of digital, data, and technology for financial services
Grow your firm through leveraging the most innovative technologies in the industry
