The event featured an informative panel discussion that focused on the regulatory challenges facing financial institutions today and looked at how automation can increase efficiency. The panel consisted of Eleni Papanikolaou
, former JP Morgan Asset Management Global Head of Cross-Border, Malcolm Wright
, former Chief Compliance Officer at Revolut, and our own Evgeny Likhoded
, Founder and CEO of ClauseMatch. Here's a look at what was discussed. Regulatory challenges
The starting point for the panel discussion was a look at the challenges that financial institutions face today from a compliance and regulatory perspective. It was noted that the speed of regulatory change has risen significantly in recent years, and that demands on compliance staff have increased exponentially. It came to light that one of the key struggles for financial institutions today is actually understanding what the regulator wants to see. Often, new regulations are open to interpretation, leaving firms uncertain about the new regulatory requirements. Solutions
The panel then looked at how financial institutions are addressing these challenges. It was revealed that, in the past, organisations have often just thrown more people at the problem in order to deal with new regulations and remain compliant. However, the panel agreed that this approach is generally not an effective long-term solution, as it results in significantly higher costs. Automation
Which brings us to the key topic of automation. Is it possible to automate the compliance lifecycle in order to improve efficiency and save considerable time and resources?
The panel agreed that automation is definitely the way forward when it comes to easing the regulatory burden on financial institutions. However, it was also noted that there are challenges associated with implementing automation technology. A firm cannot just simply implement a new piece of technology and expect all compliance and regulatory problems to be solved.
Instead, financial institutions should work closely with RegTech firms to look at what can be automated effectively, and explore opportunities to move human intelligence into other, more productive areas. Implementing new regulatory technology in a logical, structured manner is the key to success.
Overall, last week's networking event was extremely educational and it was an excellent opportunity to discuss the challenges that financial institutions face today. For information on our future RegTech networking events, sign up for our news and events here