Scalability, in the context of a business strategy, describes an ability to grow said business without being hampered by structure or available resources when faced with the idea of increased production. The concept of scalability has become more and more relevant in recent years as technology has made it easier to reach a broader customer market, expanding reach and customer base. The advancement of technology has also made it easier to scale up a business than it was previously.
Scaling up does not just happen from the growth of your business, it also means scaling up to meet the challenges of your sector, and one of these challenges is regulation. The new era of requirements following the global financial crisis of 2008 and the pandemic of 2020 present many challenges across many industries.
RegTech is Becoming More Important
Regulation and technology are two of the most important trends that have shifted in the modern age of business; with authorities across the globe introducing wave after wave of new regulations that people must keep up with.
To combat this, businesses must either adapt their operations or keep trying to patch together solutions from their existing processes and workflows. The second option means extra costs, training and re-training of employees and an unsettled workforce, not knowing what the procedure is from one week to the next. Things like GDPR, KYC and AML obligations are examples of how quickly and drastically things can change and that is hard to keep up with.
It is for this reason that Regtech has become the solution that many turn to, to keep themselves up to date and compliant with the changing regulatory landscape.
Regtech has the potential to greatly impact a number of industries across the world, and it is now realising that potential. With the financial sector being one of the most regulated in the world, it has already taken hold there and is a breeding ground for emerging and innovative regtech solutions, that are slowly spreading into other industries.
Nowadays companies can be just as likely to fail from not utilising technology effectively to meet the increasing obligations regulation is setting and neglecting the changing landscape around them, as they are from failing to cover costs and move products.
Attempting to meet these obligations with manual processes is time-consuming and makes an enterprise more and more susceptible to human errors and slippage between key functions and departments. Regtech has effectively become the magic ingredient that enables scalability for financial institutions in an environment of increasing regulatory requirements.
The Benefits of RegTech
The three major strengths of RegTech all revolve around its ability to scale up to whatever level is required by the business it is employed in, whether large or small
Regtech can help automate repeatable and time-consuming processes that most people don’t want to do or become lax with as a result of having to repeat over and over again, a human error that can be minimised but very rarely completely avoided.
Regtech can also scale these automated processes to handle higher volumes of transactions, should it become necessary, with very little work input needed.
Along with scalability comes cost efficiency. A scalable product incurs much lower marginal costs than labour and training costs do, as a firm grows in volume.
Another benefit of Regtech is that it can provide a better user experience. As consumers, we have gotten used to – and as a result, expect – great user experiences with our products and our software.
A sleek user experience isn’t something we would often associate when talking about RegTech, or regulation as a whole but a well-designed RegTech product can help increase regulatory compliance by making it easier and more enjoyable for employees to engage with, meaning they spend more time with it and find it easier to follow the right tasks and procedures. This leads to better adoption and a stronger culture of compliance.
The future of regulation and issues like data and format standardisation are important in the adoption and widespread scaling of RegTech too. If regulations, updates and guidelines become machine-readable and more harmonised globally, it will become easier for firms to demonstrate compliance and adhere to rules and guidelines more efficiently through RegTech. It will open a whole range of possibilities for the adoption of RegTech within financial institutions.
When assessing a RegTech provider, you want to make sure that it can meet the demands of your business, not just at present but in the future too. You want a RegTech solution that has the potential to become the market standard offering.
Not only that it must be able to adapt to your needs. Every business is also different and so a one-size-fits-all solution will not work, it must be tailored to your requirements and be able to fit within your framework.
We Can Help
That is why we at Sekuritance have created a secure scalable offering that can handle all compliance needs. From KYC and AML to transaction monitoring and identity management, our solution provides a single platform to satisfy every compliance need within a business.
As compliance rules and regulations continue to grow, so does the need for evolving compliance tools to help your business thrive and not fall foul of legislation.
Our solution is an easily integrable suite of tools that can work within your existing framework and grow as your business, and the compliance landscape does too.
To find out how our offering can help your business visit www.sekuritance.com today.