September 20199 Prioritize these areas for RegTech solutions. Consider first if automation technology could reduce the risk or whether the regulatory process lends itself to high order technology e.g., machine learning. · Could critical regulatory processes be continuously monitored through the adoption of RegTech? Regulators require continuous improvement in quality standards. Monitoring and remediating critical regulatory processes helps to address this need. Strategic alignmentPwC's 22nd Annual Global CEO survey listed over-regulation as the second top threat to growth, and operational efficiencies as the second internal driver for revenue growth. The adoption of RegTech can address these concerns and should align with your organization's overall business and regulatory strategy. Steps to achieve this include:· Prepare a business case that incorporates how RegTech solutions can close the gap on the regulatory risks or create efficiencies. Factor in costs across evaluation of the technology, proof of concept, pilot, and implementation phases. · Determine the skills requirements for any internal RegTech development or management of external RegTech solutions. Teams may not need to know how to code, but they do need to understand what is coded, how decisions are coded in tech-enabled processes, and how to verify and confirm coding.· Consider whether risk appetites need to be adjusted for the RegTech initiatives.Build trustA number of stakeholders, both internal and external to the company, need to be engaged in the adoption of RegTech. These include:· Varying company stakeholdersRegTech adoption should be owned by the business however a wide range of company stakeholders should be engaged to address risk requirements. These may include C-suite, risk and compliance, strategy and operations, procurement, legal, IT ­ e.g. security and architecture, finance, and internal audit. · Your regulatory and compliance teamsFactor in your employees' future by considering your team's capability and capacity to change. Where do they fit in with the RegTech revolution? When defining a new way of working through RegTech, draw on your employees' expertise to involve them in the change. Consider how digital ways of working will be measured and rewarded to encourage the use of RegTech and the identification of regulatory process that lend themselves to RegTech.· Regulatory bodiesConsider how and when to bring the regulator into the RegTech conversation. Including the regulatory body early in the adoption of RegTech enables feedback and a stronger relationship to be formed. With data captured in a RegTech system, regulators can perform an electronic assessment against their regulatory Act(s) facilitating a faster review. Outside in perspectiveExternal forces are pressuring companies to adapt and improve their regulatory processes. To stay on top of these drivers companies should:· Monitor future regulatory changes and start with a tech-led approach to compliance. · Scan RegTech trials being conducted by regulators. Assess how the digitization of surveillance could impact your business and whether your regulatory process needs to adapt to those changes. While the RegTech industry is evolving, craft or compare your RegTech execution strategy to those of leading companies to take advantage of the RegTech revolution. Recognize that regulators are conducting RegTech trials to explore potential efficiencies in supervision and to provide genuine learning opportunities for their networks and industry. There is an increasing expectation that organizations are exploring RegTech too. Follow the steps above and get started today. At PwC we are creating our own RegTech solutions which support clients in gaining confidence across a range of regulatory requirements. Examples of PwC's RegTech include:· PwC Protect, a technology platform to detect and prevent fraud in lending whilst transforming the customer experience. · Smart Audit Platform, an automated analysis tool for financial statement compliance. · PaidRight, advanced data analytics, and artificial intelligence to restore accuracy to payroll and confidence to organizations. · Comply First Time, PwC's global indirect taxes automated compliance/analytics engine.· Zipline for GST/VAT, leveraging the latest OCR and machine learning technologies with PwC's deep tax content and expertise to fully automate GST/VAT calculation from source documents. To accelerate the ideation of these solutions, we are taking our people on a digital journey. To start with we have created a Digital Fitness Assessment to help our people understand where they sit on the digital curve. Bite-sized learning modules are then available to help improve digital fitness in the areas identified through the assessment.Next is our digital academies, two-day learning workshops to help improve our people's skills in data and automation. While not solely focused on RegTech the digital skills program boosts digital capability. Finally, our digital accelerator program offers participants the opportunity to become a highly-skilled digital specialist.
< Page 8 | Page 10 >