With several existing regulations in play and new concerns on the horizon, a treasurer can keep up with regtech's assistance.
FREMONT, CA: As regulations continue to evolve, businesses are paying very close attention to compliance efforts enterprise-wide. Financial organizations, especially treasuries, are reviewing procedures across their business units and geographic boundaries to improve visibility into their regulatory compliance and mitigate compliance risks. As businesses expand geographically, treasuries increasingly need to comply with various local and international regulations. That is why regulation technology is important to manage treasuries’ compliance.
Like a winning team that keeps a playbook from which they can draw insights, treasuries can put in place a similar proactive framework for managing compliance. Without a game plan, new regulatory requirements might catch the treasury by surprise. Regulations may be introduced in short notice or some time without notice, but developing a game plan to respond to changes will help treasuries to provide a streamlined process for effectively responding to new requirements. New compliance challenges require modern tools, and these need to be globally dynamic. Regtech can leverage data sets for offering unique and timely insight into regulatory processes, automating compliance, and risk management tasks by pooling and aggregating data from several sources.
Regulatory technology also drives automation across treasury processes, freeing up staff to focus on regulatory compliance and its impact across the organization. Additionally, for treasuries that lack resources, liquidity, and capital, these new technologies are often offered in a cloud model. This can bring down the burden of utilizing internal IT staff, keeping the total cost of ownership down, and helping the treasuries stay on the latest version regulation for better performance all around.
Huge penalties and reputational risks mean that for the majority of treasuries, compliance is not an option but a mandate. Moving to regtech is vital in helping treasurers manage regulatory compliance. Regtech is all set to make tremendous growth, as regulators promise a higher level of control and oversight than ever before.