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RegTech on the rise to tackle fraud

RegTech, a game changer in the fight against fraud

RegTech holds the promise to improve the ability, speed, and efficiency of financial services firms in analysing and sharing data for the purpose of detecting and reporting economic crime.

With technologies such as artificial intelligence, machine learning, robotics, distributed ledger technology and biometrics, RegTech can enable regulatory compliance to become both the sword and shield against economic crime. Such a benefit not only reduces the burden of cost and complexity, but also improve capacities of financial services firms by automating compliance processes.

RegTech is a game changer when it comes to addressing economic crime and navigating the ever-changing global regulatory landscape. As industry implements ambitious digital transformation programmes, RegTech is a new tool for all parties to improve processes, detect and prevent fraud.

RegTech, a tool for regulators and compliance

Regulators continue to invest in developing and improving their technological capabilities to support their supervisory activities and to process and analyse large amounts of data quickly and efficiently.

In recent years, regulators have taken a risk-based approach to compliance and made significant investments in their own technology tools and operations. Regulators expect firms to be proactive in detecting, preventing and remediating compliance issues and fraud threats within their own operations. RegTech has a critical role to play as the data management required to meet these expectations is costly and inefficient using manual processes alone.

To meet regulators’ requirements, financial services firms store, access and process data on a measure never previously predicted. Datasets must be deep, accurate, and their contents should be able to be cross-examined and operated with much more flexibility than before, with different potentials and for different purposes. RegTech provides not just solutions to report or monitor for regulated firms to remain compliant but also provides solutions constructed around the data.

Security analysts in large organizations receive thousands of threat alerts and notifications daily. The challenge lies in determining which vulnerabilities pose the highest risk. With RegTech’s advanced risk scoring technology and advanced analytics, each susceptibility can be attributed to a threat score and prioritised, monitored and treated before an attack occurs.

Join the Financial Services Programme

Now more than ever, financial services providers embark on new digital transformation journeys to improve processes, resilience, and services. We bring together and connect firms from across the ecosystem to ensure innovation and technology can be fully harnessed and embraced by industry and regulators.

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Original article link: https://www.techuk.org/resource/regtech-on-the-rise-to-tackle-fraud.html

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