RegTECH Investment, Compliance Spending

In compliance training, the best RegTech products and services remove traditional barriers to training and improve the quality and delivery of content.

RegTECH Investment, Compliance Spending

In compliance training, the best RegTech products and services remove traditional barriers to training and improve the quality and delivery of content.
fintech course By FINTECH Books Contributor, Julian Fenwick Follow: @JFFenwick Over the last decade technology has fundamentally changed most aspects of how we do business. To date, compliance training is one of the exceptions. Most organisations still use the same software and training theory to run it as they did ten years ago. Employees hate mandatory compliance training because it is repetitive, condescending, and time consuming. Some financial institutions deliver more than 40 annual hours of mandatory training per employee, much of it the same as that given in the previous year with no recognition for years of experience or prior learning. In his speech to the G20 in January 2017, Australian Treasurer Scott Morrison said that governments around the world must use emerging regulatory technology, or ‘RegTech’, to reduce compliance costs. The Treasurer noted that global financial institutions spend more than US$70 billion on compliance annually, with costs expected to approach US$120 billion by 2020. The costs of lost productivity due to inefficient training are unlikely to have been included in these metrics. If measured at a conservative opportunity cost of $100 per hour, lost productivity is costing New York’s financial services industry $33 million per hour. With increasing regulation and stronger interest from regulators in corporate culture and conduct risk, the training burden is only likely to increase. It’s time to look at training outcomes over hours! The implicit marriage between regulation and technology in the term ‘RegTech’ not only means that regulation is catching up to the latest advances in technology; it also indicates that technology can significantly enhance the way in which we monitor and mobilise around our various compliance burdens and obligations. Within a relatively short time, it has become clear that online technologies can make our response to these ever-proliferating requirements more agile, economical and scalable. In the world of compliance training, the very best RegTech products and services remove traditional barriers to training and improve the quality and delivery of content. If you would like to learn more about Fintech and Insurtech please look at our video courses at FINTECHCircleInstitute.com