The Future of Compliance and the Role of RegTech

Written by Mathew Dorrell

Big data, AI and machine learning are common terms used across most industries as businesses look to find ways in which they can become more efficient in their processes by embracing even the most advanced technologies. In the regulatory and compliance space it is no different. Popularly known as ‘RegTech’, the demand in gathering huge amounts of data that can help service clients and their needs to target audiences accurately and efficiently is ever-expanding, as is the volumes of data being analysed. This has had ramifications for confidentiality measures, as businesses are required to ensure they do not lapse on due diligence and that they have processes in place to mitigate risk of data tampering. Technology plays a vital role in safeguarding and regulating data and processes, and in the compliance sector, solutions are emerging at a rapid pace. 

The benefits of adopting RegTech

As cloud-based or software-based solutions harness the power of new technologies, it is now possible to create robust information platforms. Utilising solutions like data science, data automation, blockchain, artificial intelligence and machine learning to ensure minimal manual intervention, businesses can benefit from reduced errors and fewer fraud cases.

Time consuming data intensive processes like Know-Your-Customer (KYC) have also benefited greatly due to the ability of these technological solutions to store and retrieve information almost instantaneously regardless of the location of the end-user. This digitisation has also enabled customers to securely feed their personal information from anywhere in the world thereby reducing the overall processing time. 

What does this mean for the job market? 

This paradigm shift has resulted in changing skill requirements from the regulatory talent pool as employers look for individuals who have the capabilities to understand technological evolutions like AI, machine learning and other common terms. At Aquis Search we have seen client mandates from the regulatory sector that require the incumbent candidate to be proficient in industry standard regulatory software. Traditional skill sets like regulatory reporting are now accompanied with the requirement for proficiency in regulatory reporting software. 

Due to the sensitive nature of data, large financial institutions have full-fledged technology teams that develop proprietary software and systems, supporting the regulatory compliance teams in-house. This has given rise to jobs in RegTech and the business side where the technology is implemented. The volume of investment is a strong indicator of the willingness of our clients to adopt technology solutions in the current projects they are working on. Businesses we work with are now planning for the future in their technology requirements, they are looking for the skills to be embedded in the business now. 

RegTech specialist positions are becoming more commonplace with our clients, as every firm prefers having specialists who can handle the software implementation and smooth the transition phase. 

But despite the demand from employers in the RegTech space, it is still a relatively new market. Education is not geared towards a career in RegTech and formal courses in universities are still very rare. In fact, RegTech is still considered a branch of FinTech. But with growing opportunities and start-ups appearing in this sector there are online courses or modules on RegTech that can help interested candidates take up this subject at an academic level. 

If you are interested in becoming a specialist in this space, there are opportunities out there for people who already have an understanding of technologies like blockchain, AI and machine learning. To stay competitive among the talent pool, we advise you to truly immerse yourself in these technologies to gain a deeper understanding. By being able to demonstrate a knowledge of these technologies, specifically in relation to regulatory and compliance sector, you’ll be in the best position to build a career in RegTech.