Innovate Finance have collaborated with KPMG to develop a new report titled 'A user’s guide to RegTech: Navigating the challenges and what success looks like' providing an explanation of what RegTech is and why it is important. The report contains emerging trends in RegTech, use cases, key applications and adoption success stories.

This user's guide highlights the need to build awareness of many RegTech solutions currently offered in the market and the impact they are having on financial services.

Janine Hirt, CEO of Innovate Finance

UK RegTech is facing multiple barriers to scale. There is already a compelling story to tell, but the support of cross-industry stakeholders such as regulators, government, investors and institutions will be needed to move the needle on the RegTech scaling challenge.

RegTech User cases

The report highlights key benefits of adopting RegTech solutions in the following four main areas from a selection of key domains:

1. Cyber, Identity and Privacy combined with Financial Crime - RegTechs offer a range of technology-enabled identity verification solutions, including customer onboarding, company structure identification, beneficial ownership and document signing to empower organisations from a variety of sectors to not only comply with these regulatory programmes but also keep pace with wider market changes.
2. Regulatory Reporting - Solutions offered by RegTechs in this domain range from secure and encrypted Cloud-based real-time data processing, and local licence-based software deployment on client systems through to secure localised remote data processing.
3. Sustainability and ESG - RegTech solutions not only support ESG disclosure requirements, but they can also support gathering the relevant information for clients to meet ongoing regulatory requirements and increase focus on mitigation and/or remediation activity; streamline processes by combining with other related areas, such as KYC and anti-financial crime; identify ESG reg flags in possible investment assets; allow financial managers to make informed, strategic ESG-related Decisions.
4. Regulatory and compliance management – RegTechs embed various compliance solutions within business processes to allow institutions to demonstrate regulatory compliance and traceability of requirements to policies, processes and controls.

To learn more about this report please visit KPMG's Report Page here.