RegTech: Simplified Compliance, Strengthened Operational Resilience

With the advancement in technology and business landscapes of industries – especially that of financial institutions – are increasingly susceptible to disruptions. The operations of financial institutions are facing growing threats as the cyber landscape transforms, making it the key driving force fuelling European regulators to keep an eye on the topic of Operational Resilience.

Operational Resilience should form an integral part of a firm’s overall strategy and it should extend beyond business continuity and disaster recovery. The rationale is straightforward: Any disruption to the business has the potential to snowball from business downtime to substantial regulatory fines and even irreversible reputational damage.

An effective and reliable Operational Resilience framework benefits the banks and other industries beyond just meeting supervisory regulations. In fact, it will reward the organisation with lasting competitive advantages such as a seamless and effective disaster recovery in face of the ever-increasing complexity of crises – which is extremely crucial as it determines the sustainability of any business.

RegTech revolutionises the way financial organisations meet compliance requirements. The smart technology digitalises traditionally manual processes eliminating tedious spreadsheets and elaborate email chains as they introduce a less expensive method to address compliance requirements.

Banks have been placing a tremendous focus on managing Operational Resilience on the revenue side but to effectively increase their revenue capability, it is important to not neglect the cost side of it. To address the increasing pressure from regulatory compliance, banks typically engage consultants to assist them in meeting the new standard. However, this is often not a sustainable solution due to cost and efficiency factors.  engaging consultants does not allow banks to view information in real time which is a critical competitive advantage that Regtech presents.

Banks engage with many resources to deliver an enormous amount of data. While it is hard to present specific figures as to how much companies spend on compliance efforts, we can safely say that Regtech can help to control these costs through sharper visualisation and analysis. In fact, Alyne’s customers of various organisational structures have achieved cost-savings of 60 to 70 percent.

Regtech simplifies regulatory compliance efforts by automating critical data monitoring processes for banks to quickly adapt to the increasing pressures of regulatory reporting requirements and also to protect themselves from any business meltdowns.

We know that every organisation has a unique structure and that is why there is no one framework that meets the needs of all organisation perfectly. To build a bullet-proof Operational Resilience framework that is catered to your organisation,  it is extremely important to understand operational risk key performance indicators and new regulatory standards in the context of the organisation in order to make a sound and informed decision.

Alyne, a software as a service, automates the evaluation analysis of requirements, standards, laws and regulations quickly and informs organisations the risk level of their assets, services and processes accordingly in real-time, empowering them to quantify the resilience of their company. Risk and compliance used to be a detective in nature but Alyne paints a clearer picture of the internal structure of your organisation so that your employees can make smarter decisions that do not endanger information assets. This places your bank in an advantageous position as risk and compliance moved into a preventive approach.

The beauty of RegTech does not stop right there. It can also assist the banks in many other ways such as assessing the suitability of clients through know-your-customer processes, and preventing your company from being a victim of money laundering and terrorist financing through artificial intelligence. Simply put, it is a strategic investment that puts the Operational Resilience of your organisation a notch above the rest.

Ready to mature your organisation’s Operational Resilience capabilities? Schedule a meeting with one of our experts.