Regtech services
In general, the financial industry has been investing significant resources to provide the data required by regulatory requirements for quite some time, be it by using appropriate IT and software solutions or by applying uniform technical solutions throughout the bank. Against the background of the most recent regulatory requirements, such as BCBS 239, SREP, AnaCredit, IFRS 9 and “Basel IV”, the obstacles for implementation are increasing and require more efficient solutions. At the same time, banks are finding that over time their IT architectures have become too complex and that, consequently, an expansion or modification of the database system requires considerable effort.
The use of standardized regtech approaches
This fact makes the use of innovative technologies particularly attractive when working with regtech companies and their solutions for cloud services, data security, data analysis / screening, etc. Banks do not only expect modernization but also a considerable reduction in cost from this. The use of standardized regtech approaches reduces the implementation effort and enables companies to be better prepared for new complex regulatory requirements. Critics, on the other hand, regard the future development of the regtech market as limited, since standardized IT approaches within the banking industry are difficult to implement due to considerable differences between IT architectures, national regulatory reporting requirements and pan-European regulations.
