RegTech is generally defined as the use of technology to enhance risk management, compliance and regulatory reporting by financial institutions.1

Use of innovative technologies by banks to achieve regulatory compliance or better risk management.2

1 MAS – Monetary Authority of Singapore

2 BIS – Bank for International Settlement

Market Dynamics for RegTech

  • In today's industry, banks and other licensed financial institutions are undergoing transformational changes that include changes to regulatory compliance and market dynamics due to tight margin and digital transformation
  • Regulatory compliance requirements are evolving rapidly, constant changes and updates are becoming the new challenge for banks and financial institutions
  • Penalties have been imposed for non-compliance
  • Regulators are more concerned about the safety of the financial ecosystem, and for the bank, compliance and regulatory requirements are becoming an increasingly intricate, cross functional effort
  • Regulatory compliance is no longer the sole domain of CFO, CRO, CCO, or CDO
  • Identifying the most effective areas for transformation and innovation, applying the right solution, and overcoming other factors that hinder effective technology adoption is critical for banks FIs to solve their regulatory compliance challenges

RegTech Verticals:

Data demands continue with the regulatory requirements. It covers the standardization of data requirements, optimization of data extraction, efficient processes, operating model, and governance.
The regulatory guideline requires banks to perform the calculations as a part of:

  • Enterprise Risk Management (Basel III/IV, IFRS9, Credit Risk, Market Risk, Liquidity Risk, Capital, Stress Testing)
  • Performance Management (Asset Liability Management, Profitability)
  • Risk
Regulatory reporting is the submission of required data needed by regulators to evaluate a bank’s operations and health as a part of the regulatory obligation in the form of regulatory reports or granular data blocks. In addition to reporting, the critical areas to consider are reporting controls, governance, ownership.
The velocity of changes to regulatory compliance has dramatically increased. The key task is to tackle the interpretations, compliance changes and track regulatory obligations and impacts.
This deals with helping banks from money launderers, fraudsters, and other parties seeking to exploit the financial system and its stability. This covers Anti Money Laundering and Fraud area.

How Deloitte RegTech Lab can help:

The Deloitte RegTech Lab work with the banks to identify the most effective areas for automation, apply the right solution, and overcome obstacles to the effective adoption of the right technology to solve their evolving regulatory compliance challenges. With our experience across regulations, compliance, and technology solutions along with our proprietary tools & accelerators, Deloitte RegTech Lab is well-positioned to help banks & other financial institutions in the below areas:

RegTech Strategy

  • RegTech Assessment, Prioritization & Adoption Framework
  • Solution Approach & Implementation Roadmap, Recommendations for Compliance Automation
  • Technology Solution Vendor Assessment & Partner Strategy
  • Risk Data and Regulatory Transformation
  • Risk, Finance & Treasury Integration
  • Requirements Management, Use Case Development
  • Regulatory Change Management

Data Management (Framework, Solutions – Design & Implementation)

  • Data Strategy, Gap Assessment
  • Data Risk
  • Data Quality, Data Governance
  • Data Architecture for Risk, Finance and Treasury Integration (FSI DWH)
  • Data Engineering
  • BCBS 239

Risk Management Analytics (Design & Solution Implementation)

  • Regulatory Interpretations
  • Basel III / IV, Credit Risk, Market Risk, IFRS-9 ECL
  • Liquidity, Asset Liability Management
  • Climate Risk
  • Stress Testing
  • Financial Crime (KYC, Customer Screening, Transaction Monitoring, Fraud)

Regulatory Reporting Automation (Design & Solution Implementation)

  • Regulatory Reporting Automation Acceleration
  • Reporting Monitoring, Controls, Governance
  • Regulatory Change Management
  • Reporting Testing and Remediation

Other Supporting Services

  • Business & Technical Requirements
  • Business Validation, User Acceptance Testing
  • Data Insight for Senior Management (Visual Analytics)

Working Model

Technology Considerations

  • Data Management
  • Advanced Analytics
  • Cloud Computing
  • Big Data, AI & ML
  • Process Automation
  • Visualization
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    Key Benefits Observed

    Contact us

    For further details on how our RegTech Lab can help your business, please contact:
    Rahul Patil

    Director, Deloitte SEA

    Nai Seng Wong

    Regulatory Risk Leader, Deloitte SEA