Transformation of Restrictions into Chances - Reinventing Government Control in Finance Industry
In the ever-evolving landscape of financial services, the topic du jour is RegTech – the convergence of regulation and technology. This transformative approach is set to redefine the industry, with forward-thinking leaders viewing regulation not as an inhibitor but as a strong foundation for innovation and growth.
At the helm of this revolution is Nadish Lad, the Global Head of Product and Strategic Business at Volante Technologies. In a recent discourse, Lad emphasised the importance of a robust approach to compliance, stating that it not only protects customers but also builds trust and helps maintain an equitable environment.
The Bank of England's move to replace the UK's outdated Faster Payments infrastructure serves as a testament to this fact. The real barrier to progress, it seems, is not regulation but legacy technology. With flexible foundations, financial institutions can implement regulatory changes through configuration rather than costly bespoke builds.
This shift in perspective is crucial. Real regulatory blockers are specific legal requirements that directly prevent certain business activities. Self-imposed constraints, however, stem from inflexible systems, overly cautious cultures, or poorly designed processes.
To combat these constraints, choosing modular platforms that can be reconfigured quickly, implementing real-time monitoring and reporting, and treating compliance teams as strategic partners are key. Innovation, after all, starts with infrastructure in the context of financial services and RegTech.
When compliance becomes a barrier, it's usually because the underlying infrastructure was never built to handle regulatory requirements efficiently. Financial institutions need to audit their operational bottlenecks honestly to identify where the real problems lie.
Investment in forward-thinking processes and compliance-ready technology will enable firms to view regulatory requirements as a trigger for innovation, rather than a reason to stall. This proactive approach is gaining traction, with 72% of financial institutions citing the complexity of core legacy systems as their biggest challenge when modernizing payments infrastructure.
Companies such as SAP and their user base are heavily investing in modern, cloud-based architectures and real-time data capabilities, focusing on transitioning ERP systems like S/4HANA into public and private cloud environments to enhance flexibility and adaptability amid regulatory changes.
While 39% of financial institutions identify compliance and regulatory change as a top challenge, it trails behind other barriers such as skills gaps and legacy infrastructure. The key lies in anticipating and accommodating regulatory change, not just reacting to it.
The future of financial services lies in embracing RegTech. As we move towards the scheduled meeting on 15.09.2025 at 10:00 am, the industry stands poised to transform compliance from a hurdle into a catalyst for innovation.
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