Renowned RegTech firm Ascent recently outlined a successful customer success story for ING and Commerzbank.
The financial industry is continuously adapting to new regulations, which can lead to substantial compliance costs.
These expenses are primarily due to the extensive manual effort involved in analysing regulations and understanding their business impact. This process is not only costly but also subject to human error, increasing regulatory risk.
Two leading global banks, ING and Commonwealth Bank of Australia, faced these challenges head-on. Under the guidance of the UK’s Financial Conduct Authority (FCA), they collaborated with Ascent, a RegTech firm, to navigate two significant European regulations: MiFID-II and MiFIR. This collaboration aimed to streamline and improve the accuracy of identifying their regulatory obligations.
Historically, the process at ING and CommBank for mapping regulatory obligations was arduous and manual, consuming around 1,800 hours of human effort – the equivalent of one full-time employee working for an entire year. Ascent disrupted this norm by completing a comprehensive review and analysis of MiFID-II and MiFIR in an astonishing 2.5 minutes. This breakthrough not only demonstrated Ascent’s efficiency but also its accuracy when compared with the banks’ benchmarking efforts.
The partnership with Ascent marked a significant leap forward for ING and CommBank in the automation of generating regulatory obligations. It has been reported that Ascent’s technology can save up to 49 percent of a compliance officer’s time annually. This time can then be redirected towards more strategic tasks such as implementing compliance and handling exceptions proactively. Luke Scanlon, Head of FinTech Propositions at Pinsent Masons Law Firm, highlighted the long-term benefits of Ascent’s solution, stating, “Ascent assists regulated businesses in making their approach to remediation more efficient and effective. From a legal adviser’s perspective, it means that more time and resources can be spent on helping clients develop regulatory strategy and understand the impact of regulation on their businesses.”
This case study exemplifies how FinTech solutions like Ascent can significantly reduce the time and risk associated with regulatory compliance. It’s a testament to the potential of FinTech to transform traditional banking operations, making them more efficient and forward-thinking in their approach to regulatory challenges.
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