How can RegTech transform core regulatory processes? The key difference between a traditional solution and a We expect RegTech solutions to be primarily based on one of RegTech solution is agility. RegTech solutions are more the following four dimensions: nimble, flexible and aren’t built on ‘locked-down’ requirements 1) Efficiency and collaboration as typically seen in more traditional solutions. In addition, 2) Integration, standards and understanding RegTech solutions tend to be flexible and cloud based, which means data is remotely maintained, managed and backed 3) Predict, learn and simplify up, resulting in more scalable and flexible performance with 4) New Avenues reduced costs. As the RegTech phenomena matures, we believe that it will help drive convergence within control functions as many tasks can now be automated thereby reducing operational risks associated with meeting regulatory compliance reporting obligations. This is only the tipping point of efficiencies offered by RegTech. RegTech Phenomena: Various domains of RegTech solutions and how this will transform Financial Services Efficiency and collaboration Integration, standards and Predict, learn and simplify New avenues understanding Semantic tech & data point Alternative reporting methods models Risk & compliance monitoring Blockchain/distributed ledger Create more flexibility Machine-readable Identifying real-time risk/ Blockchain could for firms to provide their regulation allows more fraud through correlating improve system integrity regulatory data and automation and can multiple sources of while increasing reduce the cost and significantly reduce the information and using transparency and could burden of regulatory cost of change, ensuring powerful calculation transform processes reporting greater consistency engines could reduce risk and redefine how data between regulations and and false positives is shared implementation Unified risk assessment Application program interface Machine learning Biometrics Shared platforms among APIs encourage Allows systems to Biometric technology second line of defence integration and automatically reassess measures people’s functions enable interoperability between and refine processes in physical characteristics common approaches systems and help reduce reaction to input from and could allow more and documentation costs, increase efficiency users, replacing firms’ efficient and robust of various risk- and and provide platforms for more complex high- ways to verify identity regulatory-related data innovation volume and repeatable elements regulatory tasks Cloud computing Shared data ontology Big data analytics & modelling Inbuilt compliance Enables more efficient Sharing a common Using big data analytics An automated, system- data sharing and understanding of the across multiple data based rule set that can collaborative, remote structure of regulatory sets could enable new automatically apply access, among others, data improves efficiency, insights and support more regulatory strategies which can assist reduces costs, eases informed decision making, to updated regulations teams in coordinating interactions and helps reducing the burden of can reduce overall risk assessment and remove ambiguity regulatory reporting compliance costs reporting The changing landscape 5 How to use RegTech and make regulatory compliance your strategic advantage