Scott also suggests that institutions should consider the vendor's roadmap to ensure their chosen partner can meet their needs in the long term. She predicts that the RegTech space will continue to evolve as API-driven solutions become available and the costs of ongoing maintenance become better understood. Institutions need to address these key concerns to make the best decision for their organization.
Key takeaways:
- Regulatory technology (RegTech) can help institutions fulfill their regulatory obligations by reducing manual processes, mitigating regulatory risk, saving costs and improving the customer experience.
- Institutions need to consider several factors when deciding between building an in-house RegTech solution or buying one, including speed of implementation, ability to maintain compliance as regulations evolve, costs, customer experience, competitive dynamics, flexibility to adapt to existing processes, and risks of scope creep and unexpected costs.
- There has been a trend towards buying RegTech solutions among traditional financial institutions, while native digital financial institutions have been more inclined to build their own solutions, often with customer experience as the main consideration.
- The future of the RegTech space will likely be influenced by the availability of API-driven solutions and a better understanding of the costs of ongoing maintenance.