In order for the financial industry to be more efficient, it must apply technology to regulation because of larger quantities of data being produced, according to John Dwyer, the author of the `RegTech – Not Reg Plus Tech, But Reg to the Power of Tech: FinTech Will Drive Innovation and Automation to Financial Regulation` report issued by research and advisory company Celent.
Moreover, structured and unstructured data is being produced and analysed in order to make financial decisions, and this needs to be taken into consideration as FinTech continues to disrupt the traditional sector. This will make an impact on regulators in a number of ways as crowdfunding and P2P funding is coming to the forefront with a growth in data analytics fuelling the change. Alongside this, an increasing number of financial and non-traditional financial firms merge to create financial hybrids.
Automation of regulation will eliminate the problem that financial institutions face today as they have to comply with many regulations which occasionally state the same thing. If businesses adapt to technology and their strategy to fit innovation, regulations should be easy to deal with. Dwyer says that FinTech is a burgeoning industry and it makes sense to use automation.
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