Confluence, a provider of investment data management automation for regulatory, financial and investor reporting, predicts RegTech will make the way for DataTech.
The company has announced a series of predictions for the operations side of the fund management industry in 2018, all driven by SEC modernisation and continually changing regulatory requirements. It predicts that RegTech will make way for a DataTech movement in business operations across the back-office ecosystem.
With asset managers embracing technology and leveraging data across a multitude of regulatory forms, Confluence expects that in 2018 the same impulse will impact the broader fund servicing ecosystem.
This will result in a DataTech movement in the fund servicing back office, with data used to produce a variety of financial, marketing and statutory reports, eliminating process proliferation and redundant data processing.
It also predicts that asset management professionals will take a comprehensive look at the new reality of SEC Modernization and the avalanche of machine-readable data that will be provided for regulatory analysis. As a result, employing data analytics within their own compliance operations will become a necessity, not an option
Furthermore, Confluence suggests that regulatory anxiety will prevail as the future of new regulations remains unresolved.
Todd Moyer,?Confluence COO, said: ?While the implementation of SEC Modernization is the most obvious driver of that change, we believe that back-office professionals will see this as a rare opportunity to transform their operations in a way that goes beyond compliance to harness data in new and powerful ways for their businesses and their clients.p>
Global RegTech investments have tripled over five years from 2012 to 2016 according to the Global RegTech review. ?An increase of 32% CAGR, in terms of capital invested, has seen the level of recorded capital increase from $310.3m to $939.8m. The number of investments peaked in 2015 when 122 deals were recorded compared to 48 in 2012. The total number of deals and the aggregate capital investment remained steady between 2015 and 2016.
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