The global financial services industry is seeing an emerging field change the
game of online regulatory processes through the use of information
technology advances. Regtech - the term used for ‘Regulatory Technology’ -
is a new field which is promising to increase the levels of reporting and
analysing of data, offering more efficient and inexpensive solutions to
companies who are investing in Fintech-related operations and require the
need to measure laws and regulations of their technology-based products
and services. In this blog we’ll learn more about Regtech, how it’s affecting
the Financial Services and what recruitment opportunities it’s presenting to
the sectors of Finance and Technology.

How Is Regtech Affecting the Financial Industry?

Regtech offers an increased focus on data analytics and revolves around the
protection of data, compliance monitoring and reporting. Regtech companies
make use of cloud computing, a low-cost technology which creates the ability
to quickly and securely share data with other entities. Technological growth is
allowing Regtech to provide companies with tools which learn from previous
regulatory results to indicate and prevent any potential risk, as well as
methods of complying with rules published by financial authorities.

In a report, Deloitte concluded that “In the short term, RegTech will help firms to automate
the more mundane compliance tasks and reduce operational risks associated
with meeting compliance and reporting obligations.” In short, Regtech is
helping banks comply with regulation in a more agile and efficient way
through the development of technology. Such technology such as that of
Artificial Intelligence, Machine Learning and Blockchain assists the
compliance data management, audit trail capabilities and risk workflows of an
organisation. Regtech also reduces risk to a company’s compliance
department by providing information on money-laundering taking place
online, and gives updates on cyber attacks and data breach.

What Recruitment Opportunities is Regtech creating?

Through the introduction of Cryptocurrency Exchanges moving to Maltese
shores, Regtech promises to become one of the fastest-growing areas within
Fintech-based companies, creating more opportunity for Banking jobs in
Malta. These companies would benefit from Regtech through the way such
technology will facilitate and accelerate compliance processes, therefore
strengthening the monitoring of rapid data in real-time. Financial market
trading requires users to carry out tasks of regulation and margin calculation,
and blockchain technology and smart contracts address these tasks by
automating the processes, increasing efficiency and speed of online trading.
It therefore goes without saying that the call for talent in Finance and
Technology is aimed towards Regtech - professionals in Risk, Compliance
and Auditing would be needed to apply their knowledge and learn more about
how to utilise such powerful technology for the benefit of a company, doing
so by interpreting new regulations and implementing them within their
systems by corresponding with professionals in Technology.

Financial insight from professionals within the Financial Services is therefore essential, with
information on regulations and jurisdictions needing to be properly
understood by financial experts and explained to technology experts, who in
turn would decode and run the necessary procedures to update the Regtech
operations of a company.
Technology-based positions required would consist of Computer Engineering,
Technical Architects, Software Engineers and Developers, IT Experts and
Security Analysts which would all be needed to operate a company’s
Regulatory Technology. Doors will also be opened for the emerging fields in
Artificial Intelligence - experts of AI would be essential to ensure that
technology is up-to-date and work to innovate new solutions for companies.

The Future of Regtech

Regtech is profoundly affecting the way Risk, Compliance and Auditing is
being carried out within companies, with its popularity growing parallel to the
growth of new Blockchain and AI technologies. A recent report issued by
Deloitte stated that there has been over 150 Regtech start-ups worldwide -
such a surge has resulted in a significant demand for regulatory and
compliance software, thus creating an increase in job opportunities across a
wide range of Technology fields in particular.


On a final note, Regtech should be seen as an opportunity to strengthen the
bonds between the sectors of Finance and Technology - a greater level of
collaboration between professionals in Technology and professionals in
Financial Services will lead to innovative solutions for the digitalized
transformation of Banking services and the growing sector of Fintech as a
whole.

Published by Elena Tahora