This year there has already been a prediction that organisations will be investing more in risk and compliance.
RegTech has also found itself in the media again, but this time with a question mark behind it. Australian Financial Review (AFR) journalist James Eyers wrote last week that the royal commission might actually be making organisations take a risk-averse approach. This means that a Regtech industry that has already been struggling might have more of an uphill battle.
Over the weekend, Regtech Association member and GRC Solutions CEO Julian Fenwick shared Eyers’ article with the comment that “RegTech adoption rising in Australia slowly.”
The question remains, how much of that projected investment that is supposed to go into risk and compliance will find itself tech-solutions?
Fenwick went on to comment that the royal commission hearings have demonstrated that what the financial services have been doing in the in the compliance space has not been working to date.
“It’s time to get serious about embedding compliance into every process rather than retrofitting a compliance program,” he writes.
Founder and CEO MEETIG8 James Lai added his piece to Fenwick ‘s comment writing “Agreed, throwing people at Compliance is not the answer. It’s inefficient, introduces subjectivity and will eventually be “yesterday’s” approach to regulatory compliance management.”
In his own LinkedIn feed Thomson Reuter Regional Bureau Chief for the Asia-Pacific Nathan Lynch also comments on the Eyre’s article:
Great piece from James Eyers on the role that #RegTech will play in the post-Hayne era. It's a sad irony that regulatory complexity has never been greater. Yet still, we have systemic misconduct across the sector (as we'll see in gory detail tomorrow at 4.10pm).
Lynch argues in his post that the RegTech has an ‘essential’ role to play in the Royal Commission with a call to action of his own “Carpe diem, regtechs, and startups.”
For the Regtech community, particularly those that will be catering to the financial services community, all this will make for interesting discussion at the second annual #Accelerate Regtech event to be held in March and probably have an impact in future the RegTech Liaison meetings held at the Australian Securities and Investments Commission (ASIC).
By then there might be a bit more clarity about where all that the risk and compliance spending will be directed.