Business Chief USA October 2020

CORPORATE FINANCE - REGTECH
54
WHAT ARE THE BENEFITS OF REGTECH?
When it comes to the benefits of
RegTech, Ghanem details that, “banks
are struggling to keep up. Between
2009 and 2012, 50,000 new financial
sector regulations were implemented
between this period, which doubled
further by 2015. In such a scenario,
RegTechs offer multiple benefits.”
Such benefits include process
improvements, “RegTechs standardise
and automate processes, making
them clearer and better defined. As a
result they reduce internal operational
risks by minimising the possibility of
incurring violations related to human
error,” notes Ghanem. Other benefits
include cost synergies. With one third
of banks looking to expand their compliance
teams and two thirds looking
to increase their budget, Ghanem highlights
the expectation that “RegTechs
will help banks to drive cost optimisation.
For instance, utilising RegTech
to automate KYC checks could result
in US$1bn cost savings for banks by
2024.” In addition to process improvements
and cost synergies, “RegTech
solutions can also decrease the processing
time, thus helping the banks to
“RegTechs
standardise
and automate
processes, making
them clearer and
better defined”
—
Elias Ghanem,
Head of Market Intelligence,
Capgemini Financial Services
OCTOBER 2020