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Top European Regtech Solutions Skyrocketing Compliance Management
Regtech companies are providing European financial firms, with modern solutions to reduce the complexity of compliance management.
FREMONT, CA: Technology has created colossal growth prospects for markets across Europe. In the highly dynamic market ecosystems, financial institutions are also growing by leaps and bounds. Just like every fairytale has a villain, several risks also mar this growth story. To limit the risks and protect the interest of consumers, regulatory bodies from the region have proactively come up with binding legislation. Europe is regulation heavy, and companies need to manage compliance with several policies simultaneously. Regulatory technology companies have taken this opportunity to develop and deliver solutions to businesses and are assisting firms in fulfilling compliance requirements. Thus, regulatory management is a well-defined field where several startups have been securing a high amount of funding. The following are some of the latest and specialised European regulatory compliance software solutions enriching attempts to comply with regulations effectively.
• Anti Money Laundering (AML) Solutions
Financial institutions face the risk of money laundering at varying levels. Complying to AML standards set by authorities is complicated. Modern compliance tools are the saviour for many companies. Technology has enabled the creation of solutions that support real-time insights into financial crime scenarios. With the help of high degrees of automation, regulatory technology providers are streamlining customer verification and reducing the chances of potential onboarding of fraudsters. Access to financial crime related databases keep the systems trained to detect risky behaviour and generate immediate alerts. Thus, companies can easily spot risks and ensure compliance with AML regulations.
• Assessment and Reporting Tools
Evaluating risk mitigation strategies and compliance readiness is critical. Many platforms offer features that allow financial firms to conduct regular audits and generate reports to prove compliance. Reporting can be time-taking and erroneous when handled manually. With software solutions, banks can automate the process of making reports. Automation is driving efficiency and cost-effectiveness into the assessment and analysis. Many startups develop customised solutions based on these reports to help clients achieve full compliance.
• Solutions for Management of Changing Regulations
Regulatory changes will keep coming, and companies in the European market have to be ready to deal with them. Regulatory technology companies offer exclusive change management solutions that equip financial institutions to seamlessly adapt to evolving norms with the help of artificial intelligence and machine learning capabilities at the core. These platforms align company policies with the latest governance requirements and keep compliance consistent.
• Know Your Customer
KYC became one of the most sought-after standards across the world. Even in Europe, it is a key part of many regulations. KYC helps companies keep a tab on their customers and their identity details. Startups in this segment have created innovative approaches that allow financial firms to make KYC process swift and hassle-free. Some companies have developed tools that allow for remote verification of customer credentials. Applications can run checks to verify the authenticity of identity documents submitted by customers and make assessment faster and intelligent.
• Transaction Compliance
There is an increase in the number of channels across which transactions are possible. With open banking getting a push in the European region, it has become imperative for firms to look closely at the safety of various modes of transaction. Digital transaction tools that can incorporate regulatory norms and deliver security to users, as well as institutions, are now available in the market. The offerings come from regulatory technology startups and lend significant control to banks over financial activities.
Using software-as-a-solution-based regulatory technology products and solutions, finance firms are now able to monitor, audit, and fix compliance-related issues comprehensively. The solutions are helping businesses cut down on the growing regulatory expenses. Apart from that, the solutions are reducing the requirement of the workforce in managing the risk landscape, thereby freeing up resources for more productive tasks.