The financial crisis has resulted in an increase in regulatory requirements on existing processes, data and reporting. In view of how archaic and inefficient banks' operations can be, it is no surprise that these changes have completely overwhelmed the industry. It is time for more effective and innovative end-to-end solutions to manage regulatory change. A regulatory ecosystem is exactly that - an infrastructure where change can be streamlined across the bank with ease.
Are there ecosystems being built in the RegTech space now?
Today, the regulatory technology ("RegTech") industry has a number of talented vendors, offering a wide array of fresh and disruptive solutions - smart horizon scanning, collaborative regulatory interpretation, integrated implementation, effective controls management, automated reporting, and so on. There are valuable opportunities for these vendors to collaborate and build a new kind of a regulatory ecosystem. And that is exactly what we've been doing at ClauseMatch - working with inspiring companies such as JWG, Corlytics, Alyne, Signal and others.
What does a regulatory ecosystem on ClauseMatch look like? The ClauseMatch platform
makes effective enterprise collaboration on documents possible. Managing impact and governing risk becomes much easier when you have a central system capturing all artefacts as well as any internal conversations around regulatory interpretation. ClauseMatch also offers a data framework to integrate other solutions; to streamline impact assessments and implementation processes. For example, integrating regulatory feeds into ClauseMatch lets you see the regulatory impact alongside internal policies, procedures and standards. Additionally, linking ClauseMatch to an internal controls tool helps to further manage gaps and implementation. These integrations make it possible to show a narrative of all of the amendments ever made. Our goal is to make the end-to-end process fully automated, smooth and effortless. This is what the future looks like. We are currently creating this system for Barclays.
What are the main requirements for successful collaboration? Tell us about your experience.
Partnering up with other technology companies always starts with exciting brainstorming sessions about what is possible from a product perspective. When it comes to actually making it happen, things can get tricky. Here is what I would recommend, based on my experience:
First of all, a successful collaboration starts with an honest conversation about what each party wants to achieve from a business point of view. A shared sense of urgency to meet a commercial goal gives a clear sense of direction - and the necessary momentum. In my opinion, this is the most important requirement for working together with other technology companies.
Secondly, you need a strong central product team and solid project management. All parties need to understand the timeframes and resources involved. Smaller companies tend to be more agile which means that priorities can change frequently. You always want to ensure that the external collaboration is integrated into internal planning.
Finally, make certain that end-users validate the integrated solution. The sooner, the better. This one is critical in product development -but somehow it tends to be overlooked when multiple vendors collaborate.
If you are all able to co-operate as one team - that's when the magic happens!