Financial Crime World

Monaco Regtech Trends Set to Shape Financial Institutions’ Future

As the financial industry navigates the complexities of Covid-19 and Brexit, regulatory technology (RegTech) trends are emerging that will have a profound impact on the way financial institutions operate in 2022 and beyond.

Regtech and Supertech Alignment: The Key to Efficiency

Regulatory bodies and financial institutions can achieve significant cost savings and use resources more efficiently by aligning their technology and software. This closer alignment creates a frictionless relationship between regulators and the regulated, replacing slow, outdated, and expensive processes.

  • Frictionless relationship between regulators and the regulated
  • Cost savings and resource efficiency
  • Replacement of slow, outdated, and expensive processes

Granular Data Breaks Down Barriers

As financial institutions and regulators process increasing volumes of data, conforming to regulatory regimes across different territories is ever more time-consuming. By breaking down data into its finest, most detailed level, known as granular data, teams around the world can understand the same data, regardless of format or receipt.

  • Breakdown of data into its finest, most detailed level
  • Understanding of same data, regardless of format or receipt

APIs and Automation Open Up Data

The use of APIs allows financial institutions to consume machine-readable reporting rules and data models directly from regulators, increasing reporting quality, reducing time and effort required for compliance, and minimizing the risk of reporting errors. Automation provides the foundation for machine-to-machine (M2M) reporting and machine learning.

  • Increased reporting quality
  • Reduced time and effort required for compliance
  • Minimized risk of reporting errors

Machine Learning Adds Value to Regulatory Reporting

Machine learning techniques are already used in regulatory reporting to extract historical data sets from data warehouses and identify previously considered trends. By forecasting future performance, machine learning can help make the industry more stable by identifying potential issues and behaviors that may require a closer investigation.

  • Identification of previously considered trends
  • Forecasting future performance
  • Increased stability in the industry

Advanced Data Analytics Offers Greater Intelligence

The use of advanced analytics is set to become a key trend in 2022 and beyond, providing financial regulators with greater intelligence around trends. RegTech allows for real-time analysis and reporting, enabling informed decisions, market growth, and reduced volatility.

  • Greater intelligence around trends
  • Real-time analysis and reporting
  • Informed decisions, market growth, and reduced volatility

As the pace of digital transformation accelerates, we are paying close attention to emerging trends in RegTech, integrating those that align with our offerings to support financial regulators and institutions.