Regulation is a major cost of doing business in many industries. Within financial services, the pace of regulatory change has accelerated and legislation is increasing in both volume and complexity. Legislative imperatives, such as MiFiD II, GDPR, and SFTR place a huge burden on financial institutions regarding data provenance and data quality. All financial institutions must store and manage an increasing volume of data.
Storing large amounts of data requires a robust infrastructure but firms also need to review the coverage, provenance and cleanliness of their data. This requires rigorous business processes to ensure strong data governance and to facilitate analysis of the data.
Maintaining regulatory compliance is essential to stay in business, but it is also a costly distraction from core activities and is rarely a sustainable source of competitive advantage.
New technologies, including DLT, cloud, artificial intelligence, and big data offer a smarter approach to regulatory compliance. RegTech solutions can increase automation and control across all areas of compliance with full traceability for audit purposes.
