The European Banking Authority (EBA) published an analysis of the RegTech landscape in the EU highlighting key opportunities and challenges. Below is a quick synopsis of what you need to know.
La Defense, Paris, where EBA is headquartered
Key opportunities of RegTech:
- Increase efficiency through better monitoring and sampling
- Reduce human errors
- Reduce the impact of ongoing regulatory change
- Improve the effectiveness of risk management
Key challenges of RegTech:
- Data (quality, security, privacy)
- Integration with the existing legacy systems
- Lack of API capabilities within financial institutions
- Lengthy procurement processes
- Limited awareness of RegTech solutions
- Regulatory standards across EU Member States
A level playing field
As the RegTech industry continues to evolve, The EBA is committed to technological neutrality to ensure no one vendor has a monopoly in the market. This will require constant monitoring and sharing of information on technological developments.
In Q4 2021, the EBA will organise a public online webinar to discuss the findings of the RegTech market analysis in the EU. Find out more on the EBA website.