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Regulation Technology (RegTech) is one of the fastest growing sectors of the software and technology industry for good reason. Banks, private equity, hedge funds, and other financial institutions are often able to reduce compliance costs and expense by up to 50 percent with proper implementation of RegTech solutions. The question is, where is the RegTech market headed next, and how will funds, managers, and administrators potentially benefit?
RegTech spending is already generating significant momentum, set to increase from 4.8 percent of regulatory spending in 2017, to 34.4 percent by 2022. A large part of this investment stems from the sheer volume of people, finances, and resources that financial institutions spend on regulatory compliance on an annual basis. Financial institutions like Citi often have upwards of 30,000 people employed in their compliance staff, and that’s just one of the tens of thousands of major financial institutions that deal with regulatory issues on a consistent basis. Just imagine if this staffing level could be reduced by 50 percent, a single large bank could save somewhere around $1.2 billion per year (based on the average wages of regulatory staff).
In an effort to ease much of the cost and complications associated with regulatory compliance, banks, …
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