Two parallel developments are driving a bank’s agility to banking compliance regulations initiatives. First is, ‘SupTech’ that helps supervisors in managing banking regulations and compliance of the licensed units, prominent among them being Aurep and FCA’s Digital Regulatory Reporting (DRR). The second development is the emergence of ‘RegTech’. This is done by players who focus on various components of the regulation piece-by-piece so that a cluster of them can be stringed to accomplish record processing times by deploying new-age technologies.

The main catalysts driving the adoption of regulatory technologies are:

• Increasing regulatory requirements
• Hefty regulatory fines and the ballooning compliance costs
• Increased digital adoption especially in the aftermath of Covid-19
• Increased funding for RegTech companies
• Unmatched data analytics & technology provided by RegTech solutions.

Steps for regulatory compliance
Increased adoption of online banking, accentuated further by the pandemic, has necessitated the development of new tools and solutions that can digitally handle most of the regulatory validations whether on customer onboarding or for payment transactions. Digital enablement acts as a good counter to the rising cost of regulation and significantly reduces post-event processing.