Defining RegTech: Innovation to Enable Compliance


Defining RegTech: Innovation to Enable Compliance


What Is RegTech?

Rapid technological evolution in the financial services industry continues to gain pace. This new environment is challenging traditional financial institutions to meet consumer demand for digital solutions by accelerating innovation in-house and by partnering with financial technology, or fintech, companies.

FinTech companies are applying innovative technology and evolving business concepts to the challenges firms face. Of these challenges, one priority is managing regulatory risk and compliance. RegTech (regulatory technologies) are tools that enable firms to enhance their compliance capabilities while becoming more efficient and cost-effective.

Based on our analysis of the market, regtech is associated with the following key competencies:

What is RegTech?


RegTech as a Game Changer

In this video, Protiviti Managing Directors Tyrone Canaday and Vishal Ranjane discuss how RegTech is redefining the technological creation process to bring the efficiencies and effectiveness that banks really need right now.





Enhancing Regulatory Compliance

Protiviti is continuously exploring avenues to assist our clients to utilise technology and enhance regulatory compliance. We have deep subject-matter expertise in regulatory compliance and are collaborating with technology subject-matter experts both internally and externally to bring RegTech solutions to financial institutions.


Using Robotics in AML Alert Reviews
Protiviti has leveraged Robotic Process Automation to automate several steps in an anti-money laundering (AML) review process. While the initial focus of using robotics has been in AML processes, Protiviti is developing proofs of concept in other areas such as reviews related to customer onboarding, fraud assessments and internal audit processes.
Automating the BSA/AML and Sanctions Risk Assessment
Protiviti has developed a tool to capture, calculate and evaluate large volumes of complex risk data. The calculation is applied in a customised manner to calculate the inherent risks unique to each business line of a financial institution. Control factors can also be quantified to enable production of a residual risk score. This tool helps a financial institution quantify its BSA/AML and sanctions risks, and also obtain information on changes in risks as soon as input data is updated.
AML Case Management System
Protiviti’s compliance and technology experts have significant experience designing and implementing technology that supports the investigative process, which drives operating efficiency and accuracy of results while providing greater reporting and analytical capabilities for large and small-scale engagements. The Protiviti Case Management Solution (CMS) is a rapidly deployable SharePoint-based application that can be supported within the client environment. Its configurable workflow provides investigators and management with the means to effectively assign, execute and review cases.
Enhanced Data Governance Processes
Protiviti has developed a robust data governance methodology utilising its expertise in data analytics and model validation and is able to offer enhanced data mapping and data lineage capabilities.


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