Automation helps provide the required outcome when the input data is clean and unbiased, or else the result will get off-track. Not all data is usable and must be processed to make it use-worthy.
Fremont, CA: Regtech has become a cost-efficient approach for organizations to follow with the changing regulations. According to reports, the main reason driving the RegTech market's growth is the increasing costs of compliance, adoption of a regulatory sandbox, and accessibility to software-as-a-service (SaaS) based offerings.
Here are three issues related to Regtech:
Standardization of Data
Standardization is another issue in Regech. Data is overtaking documents, and even though regulators have subjected documents to audit, it is not the same for data. The Australian governments have made major efforts to provide a list of data fields and taxonomy for reporting to various agencies while working with the software industry to get software built using the data fields. The outcome is automation, saving millions of dollars annually, and a data-centric compliance model.
Data Issues
Although Regtech is a popular solution for compliance challenges, there are issues that need to be sorted. One major problem is data. Automation helps provide the required outcome when the input data is clean and unbiased, or else the result will get off-track. Not all data is usable and must be processed to make it use-worthy.
Human Resource Requirements
Human involvement is needed to optimize data quality, and organizations have employed many human resource professionals for this concern. The human resource requirements will increase, with an increase in the amount of data and the need for compliance. But, skilled professionals with expertise will be difficult to find, and organizations will need to train the workforce.
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