5 Significant Benefits of Regulatory Change Management Technology

Most organizations implement regulatory change management technology to improve their existing RCM (Regulatory Change Management) practices and processes. However, Regtech (regulatory technology) goes beyond simply speeding up a few processes. It completely reworks the regulatory change management framework and synchronizes it with the risk and compliance management frameworks. This results in many benefits that help banks and financial institutions achieve their corporate objectives.

1 – Advancing Innovation

Regtech can assist banks and financial institutions in innovating at a faster rate. Regulatory changes occur more rapidly in our times not because regulatory organizations are more active than they were before; they occur more rapidly due to the rapid speed of automation. Financial institutions are increasingly adept at developing new and innovative products for their customers, and regulatory authorities respond with regulatory adjustments.

Regtech can assist businesses in innovating while remaining compliant. Modern regulatory change management platforms use risk maps to connect the dots in the risk framework. These maps outline the interactions between all essential components and controls of the regulatory framework. Businesses can readily see the impact of changes and the reverberations that will affect the organization’s processes. This real-time visibility enables more effective risk management when developing new products lines and service delivery channels.

2 – Management of Cross-Functional Compliance

A significant issue associated with regulatory changes and non-compliance is the formation of organizational silos. Some organizations lack a centralized mechanism for compliance and regulatory change management. Each department is accountable for adhering to current regulations. As a result, there is no mechanism for assessing organization-wide compliance. Additionally, it exposes the organization to heightened risks of non-compliance.

Each department within banks and financial institutions must adhere to all applicable legislation governing their operations. When organizational silos are formed, ineffective regulatory change management is the result. Each department considers the impact of regulatory changes and takes steps to assure compliance. This results in a plethora of redundant processes occurring concurrently in many areas. Departments ensure compliance with their own processes, work, and workers, regardless of the organization’s overall compliance.

Regtech unifies all departments under a single system. This has numerous advantages; departments can readily collaborate and assist one another in achieving compliance. Regulatory changes can be addressed organization-wide, ensuring that the actions performed improve the overall organization’s compliance efficiency. Additionally, it enables cross-functional insight and analysis. Upper management may readily assess each department’s regulatory compliance performance and compare departmental efficiency.

3 – Assessment of Regulatory Risks

Organizations employ sophisticated modeling methods to forecast the impact of many factors on their company and investments. However, they are unable to do similar forecasting for regulatory changes. If regulatory changes are managed manually, risk experts must likewise perform risk assessments for regulatory changes manually.

Regtech enables banks and financial institutions to do proper risk assessments in light of regulatory changes. Because regulations and the processes associated with them are stored as data in modern risk and compliance management systems, they can be utilized to assess risk in ways that were previously challnging to accomplish in real-time. Organizations can understand how regulatory changes affect their overall risk vulnerability. Management can quickly determine which departments are most vulnerable. Additionally, businesses might evaluate risks based on a variety of possible outcomes. If a regulatory change is proposed, organizations can assess how their risk portfolio will look if the change is enacted and compare it with how it will look if it is not implemented.

4 – Key Performance Indicators (KPIs)

Regtech products generate data that can be utilized to construct new key performance indicators. Automated regulatory change management solutions enable firms to track the time it takes to resolve compliance concerns, conduct audits, and do other tasks. All labor that was previously performed manually and hence unable to be recorded or measured can now be analyzed and studied. When it comes to regulatory changes and compliance, organizations might establish KPIs for their divisions.

Additionally, it provides management with an excellent benchmark for compliance and regulatory change management. Regtech users understand how long it takes to manage regulatory change. They have access to all this information as data within the GRC (Governance Risk Compliance) system. Organizations that continue to manage regulatory change management manually lack the ability to accurately track task duration.

5 – Enabling Growth

Due to differing state rules, small to medium-sized banks and financial institutions frequently do not grow into new territory. Regtech enables banks and financial institutions to overcome this barrier by automating some of the processes’ most time-consuming steps. Banks and financial institutions that have operated in the same state for decades have developed products and procedures that adhere to state requirements. Expanding into a new state necessitates redesigning each product and policy to ensure compliance with the target state’s requirements.

Regtech technologies capable of automating regulatory change are capable of reading rules and extracting pertinent information. 360factors’ Predict360 product already includes rules for all significant business locations across many nations. Banks and financial institutions need only to select a different state to view all applicable regulations. This enables banks and financial institutions to expand more rapidly than ever before. Additionally, it enables more collaborative approaches to business. Banks and financial institutions can collaborate to service clients in several states while utilizing a single regulatory change management solution.

Interested in seeing how Predict360 can bring these and many other benefits to your organization? Get in touch with our experts for a demonstration of what Predict360 can do for your organization.