The banking and capital markets sector is being disrupted by ever-changing customer behaviour, technological innovations, new market entrants and over-regulation. But change is not necessarily bad news. To understand how disruptive technologies can represent an opportunity for Australia, let’s take a look at current disruptive regulatory compliance technologies...introducing RegTech.
This blend word of 'regulatory technology' aims to regulate challenges in the financial services sector through forward thinking technology to help organisations comply with regulations in a more affordable and efficient way.
Technology is set to impact competition.
Technology is set to have a significant impact on competition within the industry over the next five years. Banking has the track record of being a complicated business where security is the primary concern with expectations being set that banking systems should also provide the same user-friendly online experience as retailers and tech companies. This presents banks with a major challenge as they have to keep up with technology changes while also meeting customer expectations.
Greater regulation to boost innovation.
Better regulation technology is essential to drive innovation and customer loyalty, while bringing costs down. Banks must start by building their workforce and focus on improving their technological capabilities to set them apart from their peers in future. A better application of technology by regulators is also required to drive a faster moving and more agile financial services market.
Use RegTech as competitive economic power.
According to specialists, the greater Australia becomes at understanding, developing and utilising RegTech products, the more competitive the economy will be.
RegTech represents an important driver of change due to the global demand for regulatory, compliance and governance software. It also provides new systems for automating compliance activity and innovative regulatory models.
It’s predicted that using RegTech to its full potential will drive growth across the financial services sector making Australia a more attractive global marketplace.
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Interested in learning more on how fintech disruption can lead to new career aspirations? Read our latest article here.