Financial services firms are increasingly using technology to help them comply with regulations – but regtech comes with challenges and risks of its own
by Peter Taylor-Whiffen
One of the legacies of the global financial crisis of 2007–8 was an avalanche of regulation changes to improve risk management and safety in the sector.
But companies have battled – and often failed – to keep up with the fast-shifting legal landscape. While some players deliberately try to circumvent the law, the ever-evolving regulations have meant that even acts carried out in good faith could fall foul of the regulators. Since 2007, global financial institutions have been fined over US$50bn, according to analysis by Fenergo – and US$10.4bn sanctions were imposed in the year to August 2020 alone.
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