
How are European CIOs Tackling the Regulatory Overload?
The role of regtech players in Europe is growing in significance as the complexity of regulatory compliance increases rapidly.
By
CIO Applications Europe | Tuesday, October 15, 2019

The role of regtech players in Europe is growing in significance as the complexity of regulatory compliance increases rapidly.
FREMONT, CA: Europe has seen a dynamic regulatory environment in recent years. Responding to the adoption of advanced technologies by various sectors, regulatory authorities have kept introducing new regulations and amended older ones. Many impending regulations are also in the fray. Currently, institutions have to deal with the likes of the General Data Protection Regulation (GDPR), Revised Payments Services Directive (PSD2) and revised Markets in Financial Instruments Directive (MiFID II). Acceding to these regulations is a complex affair that often becomes cost-intensive as well. To endure these changing implications, company CIOs are now looking forward to software solutions from regtech companies. This new breed of companies is putting together disruptive technologies into solutions that enable businesses to achieve compliance targets easily. Some key ways in which European CIOs are leveraging solutions to fulfill regulatory requirements are listed below.
• Regulatory Reporting
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
Regulatory reporting is crucial from the perspective of compliance. To optimize regulatory reporting, CIOs have put their faith in the dedicated reporting solutions that regtech firms are offering. While manual reporting is error-prone and time-intensive, technology lends automation and intelligence that makes the process agile and efficient. Some of the leading regtech companies are offering configurable software solutions which enable companies to conduct reporting in line with frameworks. The challenges of managing diverse information sources and disparate formats of business data within strict timeframes can now be overcome with automation-enabled reporting tools.
• Compliance with KYC and AML
To protect organizations from risks, many regulators have now made KYC and AML mandatory. To comply with these norms, businesses have to introduce several key changes in their systems so as to facilitate quicker verifications. Software solutions from regtech firms can help CIOs secure these aspects with minimum cost and maximum productivity. Powered by artificial intelligence algorithms, regtech solutions automate the accurate assessment of identity documents, streamlining KYC. Similarly, with data intelligence tools, regtech players are enabling CIOs to create responsive systems that can detect anomalies and react quickly to alerts.
• Ensuring Data Privacy
Data privacy is one of the critical issues that regulatory authorities in Europe are looking to address. Data storage, management, and usage by business organizations have to be monitored and safeguarded according to regulatory frameworks. CIOs are ensuring responsible use of customer data by their firms with the help of data privacy solutions. The solutions from regtech companies equip users to make the most of customer data in ethical ways, without compromising on its privacy. Data analytics, which is becoming central to business models, can be effortlessly carried out without risks of violating compliance or exposing sensitive customer data to vulnerable ecosystems.
• Ensuring Cybersecurity
Risk management is at the heart of current compliance frameworks. Cybersecurity threats pose considerable risks in today’s era of advanced connectivity and modern business environments. Internet-based criminals have carried out several attacks on organizations, resulting in extensive losses that directly affect consumers. To mitigate these risks, regulatory authorities have set strict standards of safety for every organization in Europe. CIOs can optimize system and network architecture against cybersecurity risks with AI-backed solutions provided by regtech firms. Several firms offer software suites with tools that assist real-time detection of online threats, and intelligent monitoring and filtering of risk data, empowering organizations to discover attacks before they happen.
The scope for CIOs to enhance their companies’ performance with regard to rapidly changing compliance requirements is increasing, thanks to regtech companies. The regtech sector in Europe has seen a rapid emergence of startups that are making innovative solutions accessible to companies at all levels. According to several reports, currently, there are more than 130 regtech startups in the European region, each catering to diverse domains and clients. CIOs have a chance to leverage the technology-enabled offerings from these startups to bring down costs of compliance handling and management. Regtech players have been instrumental in helping CIOs convert regulatory compliance from being a burden to an accelerated and automated part of regular business operations.
See More:
Top RegTech Companies in APAC
Top RegTech Consulting Companies in APAC
More in News
Weekly Brief
I agree We use cookies on this website to enhance your user experience. By clicking any link on this page you are giving your consent for us to set cookies. More info
Be first to read the latest tech news, Industry Leader's Insights, and CIO interviews of medium and large enterprises exclusively from CIO Applications Europe
THANK YOU FOR SUBSCRIBING


