Why RegTech matters
RegTech is a commonly used term to indicate “the use of new technology to meet regulatory requirements”. These requirements are becoming more and more complex due to the fact that it concerns more functionality, available on all platforms, using massive amounts of data.
Consumers assume and demand a frictionless user-experience combined with a high level of security and privacy, so regulators take up their responsibility. Without the use of technology, we would never be able to meet those requirements (and demands).
Our director Financial Services Vincent Guelinckx wrote an article in the #RegTech Blackbook about this exact topic: Why is RegTech so important, and which role do new technologies play in this spectrum? In this blogpost we highlight the storylines, hopefully encouraging you to read both the article and the book, in which the topic of RegTech gets demystified by approaching it from many different angles.
1. Engage in a positive relationship with technology
Every tool, resource, etc. can lead to something negative when in the wrong hands. The potential of technology is not to be measured by the possible misuse, but by the value it can deliver in existing and new business models. Technology has the potential to embark in use cases that are out-of-reach without the current digital progress.
2. Think (customer) value
Technology in itself is not a business case. Pure technology thinking brought us many solutions to non-existing problems. Focusing on existing challenges automatically brings us to real use cases and thus to customer value. The starting point should always be a concrete challenge. Technology will be an enabler, never an end in itself.
3. Consider regulations as customer value
Customer value is often considered as value when only tangible assets are in place. A highly usable functionality, a complete new insight, … are all examples of tangible value. Well guess what, regulatory requirements are also customer value, maybe less tangible but still.
Today, consumers have the joy of digital experiences when banking. Regulation ensures that this experience happens in a secure and private way.
Want to find out more? The #RegTech Blackbook will soon be available.
For deeper interactions or an effective brainstorm on creating value through technology, feel free to get in touch with Vincent himself.