For banks facing a growing regulatory burden and more intense scrutiny, could ‘RegTech’ prove more than just the latest buzzword?
An article by The Chartered Banker Institute featuring David McNair Scott, CEO of Trailight and Callum Grant, Product Director of Trailight
The rapid re-regulation of the financial sector since 2008 has had a profound effect on the industry. And this pressure is only compounded by the fact that regulatory compliance and reporting generates no direct revenue to offset the growing costs it incurs. In fact, financial institutions expect these costs to more than double over the next five years, according to professional services firm Duff & Phelps. By 2022, this would amount to an estimated compliance spend of around 10% of total revenue, compared with up to 4% typically spent today. Meanwhile, the proportion of firms putting their compliance spending at less than 1% is expected to halve.
Re-produced with the kind permission of The Chartered Banker Institute. Article published in the August /September edition of the Chartered Banker magazine, the bi-monthly journal for the banking profession.
For more information: Chartered Banker
Read Full Article: The Rise of RegTech
Listen to the Podcast: