WHAT ARE THE BENEFITS OF REGTECH ?
CORPORATE FINANCE - REGTECH
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WHAT ARE THE BENEFITS OF REGTECH ?
When it comes to the benefits of RegTech , Ghanem details that , “ banks are struggling to keep up . Between 2009 and 2012 , 50,000 new financial sector regulations were implemented between this period , which doubled further by 2015 . In such a scenario , RegTechs offer multiple benefits .” Such benefits include process improvements , “ RegTechs standardise and automate processes , making them clearer and better defined . As a result they reduce internal operational risks by minimising the possibility of incurring violations related to human error ,” notes Ghanem . Other benefits include cost synergies . With one third of banks looking to expand their compliance teams and two thirds looking to increase their budget , Ghanem highlights the expectation that “ RegTechs will help banks to drive cost optimisation . For instance , utilising RegTech to automate KYC checks could result in US $ 1bn cost savings for banks by 2024 .” In addition to process improvements and cost synergies , “ RegTech solutions can also decrease the processing time , thus helping the banks to
“RegTechs standardise and automate processes , making them clearer and better defined ”
— Elias Ghanem , Head of Market Intelligence , Capgemini Financial Services
OCTOBER 2020