Understanding What RegTech Is and Selecting a Suitable RegTech Vendor.
The evolution of RegTech in recent months has disrupted the regulatory landscape facing organisations by using technology to solve the ever increasing compliance demands within the financial industry. The rise of RegTech has seen a considerable increase in the number of regulatory software providers entering the market. In response to the growing number of regulatory requirements, the move by many new market entrants is to jump on this regulatory “bandwagon” and gain a piece of the market share. This prompts an interesting question, how do these technology companies qualify putting “Reg” and “Tech” together? Do they have enough industry experience to really validate the content behind their technology?
Many companies providing RegTech solutions to the financial industry are experienced technology companies who offer a large range of solutions covering areas such as risk, compliance, cybersecurity, vendor management and many more. The people within these companies are predominantly from a technological background and may cover all the “Tech” bases, questions need to be asked regarding their experience in the “Reg” side of the equation. A common problem with the selection of RegTech providers has been their lack of industry experience. It’s important, when going through the vendor selection process, that clients examine the background of the technology provider, and, the content being provided in their solutions. We at ViClarity, recommend that customers ask some of the following key questions:
- Who creates/validates the content behind the RegTech solution?
- How does the technology provider stay on top of regulatory change?
- How quickly can the solution be updated in line with regulatory changes?
- If I have a question on the regulations behind the solution, who do I go to?
These are just some of the initial basic questions that should be asked of any RegTech supplier during the vendor selection process but depending on your business requirements there are many more to ask. The top RegTech suppliers should be able to build and customise a solution to match the requirements of each and every company and industry.
So, how does a RegTech supplier ensure that they can prove they are competent in both sides of the “Reg” and “Tech”? ViClarity’s main expertise lies in the technology side of the solution. We have developed an innovative platform that can be customised and configured to meet the needs of any business, big or small, in a range of market sectors including financial services and healthcare. So how do we ensure to our clients that we have conquered the “Reg” side of RegTech?
Firstly, we have years of experience dealing with clients in a range of sectors including Healthcare, Banking, Investment, Insurance, Auto Lending and many more, but as already mentioned, this alone is not enough. To ensure we are on top of regulatory changes and to guarantee our clients that our content is up to date and in line with the most recent regulatory changes, we have partnered with a number of industry experts and consultants, who validate all of the content in our solutions before they go to market and throughout the product lifecycle. Taking the Irish Credit Union market for example, we have partnered with industry experts EisnerAmper who have years of industry experience, including working within The Central Bank of Ireland. Our partners validate all content within ViClarity’s large range of solutions meaning our clients can rest assured that their solutions are acceptable for regulatory inspections.
In conclusion, it is important for companies looking to buy a RegTech solution to ask the vendors the difficult questions to ensure that they can provide them with a solution that satisfies both the “Reg” and the “Tech” requirements. The vendor should not only be a technology expert but should also show that they are experts in the regulatory landscape. At ViClarity we are proud to say that we successfully bring both sides together in our leading RegTech solutions which can be tailored to meet the exact needs of every organisation.