Regtech, already having a resounding impact on regulatory compliance, is a real movement in the financial and regulatory spaces. New-age regtech specialists leverage cutting-edge technologies such as distributed ledger technology, artificial intelligence, machine learning, cryptography, big data, cloud computing, and more to aid regulatory compliance in a more operationally efficient manner. In a time of increased regulatory pressure, regtech consulting experts are offering governance, risk and compliance services to ensure the sustainable performance of activity and business for financial institutions.
With customization being the name of the game, regtech providers are tailoring their services to the specific needs of financial institutions. Their offerings include fintech strategy advice, including IT roadmap planning and technology frameworks to help financial institutions navigate the rapidly-changing regulatory world efficiently. Financial institutions are able to now reach out to regtech consultants for advice on application, maintenance, and adaptation for use in different business and regulatory environments.
Even in asset management, the role of regtech is undeniable with regtech service providers helping fund management companies to get accustomed to the dynamics and diversities within the world of fund management, by taking over their data management duties including structuring their data and checking data quality. Regtech providers are also offering guidance to fund management companies on the use of query tools for extracting data at the required level with the addition of built-in reports and collaborative tools.
When the Market in Financial Instruments Directive I (MiFID I) regime was introduced to increase transparency in financial markets, the number of fines for non-compliance reached record levels. Now with the MiFID II seeking to deliver strict guidelines to prevent a repeat of the past, Regtech consulting companies are helping financial firms adopt procedures that quickly identify issues, have workflows in place to remediate errors, and deliver continuous improvement throughout the transaction reporting process.
A new regulatory challenge for financial firms is the Securities Financing Transactions Regulation (SFTR) that is officially scheduled to kick off in the upcoming year. In order to help financial organizations prepare for trade reporting in advance, RegTech services providers are helping companies understand the aspects of SFTR that require special attention to ensure adequate data quality and timely reporting. For managing complexity and cost, RegTechs are assisting financial firms in incorporating SFTR into existing trade reporting platforms and operations.
After in-depth research on companies operating in regtech and closely examining these facts, a distinguished selection panel comprising CEOs, CIOs, VCs, and the Banking CIO Outlook’s editorial board has selected a list of the top regtech consulting/services companies that leverage innovative technologies and strategies to drive client success. We present to you Banking CIO Outlook's “Top 10 RegTech Consulting/Services Companies - 2019.”