Here’s What a Regtech Solution Can Do for Your Compliance
Regulatory technology, or regtech, includes software tools that can help fintech companies manage regulatory compliance and anticipate regulatory change. Regtech tools can be used to monitor transactions and other activities, generate reports, anticipate regulatory change, and comply with regulatory obligations.
As technology continues to drive change in the financial services sector, and with 69 percent of firms anticipating more regulatory information in the next year, regtech can do a lot to help you stay on top of your regulatory obligations and function better as a company, too. It’ll save you money, make processes more efficient, improve accuracy, encourage accountability, and more.
Save Time and Money
Regtech solutions make the regulatory compliance process smoother and easier, and that means it’ll be executed more quickly and you’ll spend less money on compliance tasks. Real-time data monitoring, robotic process automation (RPA), and intelligent automation can gather data automatically and produce reports and other documentation. You’ll get a better result for a better price and have more money to spend on growing your business.
Generating reports and filling out forms manually invites the possibility that the fallible human being doing the work will make a mistake. By the robotizing data collection and report generation and form filing, you’re substantially reducing the amount of error that can come to play in the process. Regtech software solutions don’t make mistakes the way humans can – they won’t key in the wrong numbers or misunderstand the form. They can’t make mistakes in addition or subtraction.
You needn’t worry about missing compliance deadlines, forgetting about tasks, or missing deadlines. The best regtech solutions should ping you when tasks are coming due and regulatory deadlines are coming up, so that team members don’t miss anything. You’ll know when things are starting to take too long, so you can put escalation plans in place. You can hold every team member accountable for their role in regulatory compliance, and avoid the kinds of missing details that can lead to fines or other sanctions.
Store Your Documentation More Easily
You can’t afford to miss filings or file documentation incorrectly, and that’s why you need strong document management processes to keep your regulatory filings in order. Regulatory agencies use regtech of their own to analyze regulatory filings for telltale irregularities that tell them which organizations to investigate. Using regtech to generate your filings helps ensure that everything is correct and nothing is irregular in your filing so that you can avoid undue scrutiny and the stress that comes with it. Nor should there be any nasty, surprise missing filings or late filings. All of your filings will be available to you in a handy central repository, so you’ll always know exactly what your paperwork says.
Monitor Ad Content
In the United States, there are regulations that govern how financial services companies and banks can advertise their services. Marketing material and messaging should be balanced and not misleading. The rules are complex, but regtech solutions can help you streamline marketing audits. You need a strong auditing program for marketing materials to make sure that you’re not violating any Financial Industry Regulatory Authority (FINRA) rules about advertising for fintech, banks, and other financial services companies. Reviewing and approving all the marketing materials a company puts out is a feat in itself, and the team members who take it on deserve to have the right tools at their disposal.
Grow Your Reputation
A lot of people these days are reluctant to share their personal information with a fintech app unless they know it’s on the up and up. By using regtech to meet your regulatory responsibilities, you show consumers that they can have confidence in your company and your services – because regulations are often about protecting the consumer from abuse by financial institutions. Customers will be more likely to trust your brand if they know you take regulatory compliance seriously and are proactive about using regtech to ensure it. Using regtech will not just reduce your chance of mistakes but will show consumers that their personal and financial data will be safe with you.
If you’re in the fintech space, you need to make sure you’re adhering to the relevant financial regulations. Many fintech must follow many of the same laws and regulations as banks and other financial services providers. Eliminate the risk of missed deadlines, incorrectly filed forms, and suspicious patterns in your data. Use a regtech solution to make sure you’re in control of your company’s regulatory compliance.