May 20199 One of the early layers of regulatory technology that was implemented by large financial institutions, as a response to the Basel II Capital accord, was based on integrated technology underlying ­ or imposed on - their internal processes. The aim was to automate the capital requirement analyses as required, a task so large that it had to be automated to deal with the volume and complexity.Post the global financial crisis, regulators started to enhance their own monitoring systems and required more frequent, more detailed and more volume of data from the financial services industry to be fed into their systems; resulting in a de-facto digital interface with regulators.Nowadays, regulators are looking for greater granularity, precision, and sophistication, both from a transparency perspective, as well as from a technology perspective dealing with data and analysis.We have now working in an environment where each year, hundreds of regulatory changes are implemented and hundreds of billions of fines have been handed out. Meanwhile, the industry is transforming towards digital and a client-centric business models, which will drive innovation of product and client propositions. The emergence of digital business models has led to high profile cyber incidents that increased awareness that cybercrime is one of the main threats to our financial ecosystems and with that perhaps to society. Regulators will require more insight to monitor these innovative products and transactions to catch-up with market manipulation and risks.This is an environment of ever-increasing cost of compliance and exponential growing complexity which makes it reasonable to assume we are only scratching the surface of what the future technology-based solutions will need to deliver in order to support expanding regulations, requirements for transparency and growing awareness and exposure of cybercrime. I am hopeful that we are also only scratching the surface of the transformative power of technology in the regulatory environment. THE AIM WAS TO AUTOMATE THE CAPITAL REQUIREMENT ANALYSES AS REQUIRED, A TASK SO LARGE THAT IT HAD TO BE AUTOMATED TO DEAL WITH THE VOLUME AND COMPLEXITY
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