TL;DR EBA’s RegTech Outlook

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.