Whether you’re talking about people or technical terminology, it’s important to get names right these days.
With that in mind, RegTech stands for Regulation Technology; it wasn’t invented by a man named Reginald, so it’s RegTech with a hard ‘g’.
This was how Nirvana Farhadi began her explanation of RegTech at the Governance, Risk and Compliance Seminar at DPWF last week.
As Global Head of Financial Services and RegTech, Risk and Regulatory Compliance Affairs at Hitachi, Nirvana is well-placed to interpret the very real need for RegTech and its role within the broader data protection landscape.
As a concept and sector, RegTech’s importance has soared in recent years as regulation has grown more complex across all industries, not just those with a digital focus.
Bringing in technology of regulation helps compliance departments to automate compliance processes, relieving a huge cost burden, the audience heard.
The necessity of such a sector falls into focus when you consider that the average small-to-medium-sized enterprise has around 160 different regulation requirements to adhere to. If processes are manual, then they soak up a fortune.
In the financial industry, MiFID cost organisations £2billion to implement, but GDPR isn’t specific – all industries are impacted, which will put the price rather higher.
Nirvana focused upon the challenges organisations face as we try to get up to speed with regulation during this, the digital revolution, where so many legacy systems are still in place. There’s also the question of tech giant alignment, as the biggest players are not currently being regulated.
More challenges arise from data lakes – or should that be swamps? – with cross-working purposes taking place.
“Once data is in a healthy state then you can actually start looking at monetising it. Similarly, good data governance and structure mean organisations can begin to start using data to their competitive advantage,” Nirvana said.
The audience heard how financial services are expecting huge growth as a result of emerging technologies, how the Internet of Things (IoT) will accelerate the number of electronic transactions being made.
In response, financial services organisations will need to look at creating new services to meet customer needs, satisfying new requirements and creating better digital management goals.
These issues need a technological solution, Nirvana explained, “skilled resources that can help businesses to deal with changes.”
“RegTech can take the burden away, bring costs down and help to monetise data, through automated compliance.”
European Data Protection Summit will take place on June 3rd in Central London and will play host to 800 DPO’s, Security Professionals and senior business decision makers looking for; information, updates, clarity, advice and solutions. For more information, visit the website.
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