As the regulatory landscape continues to evolve at a breakneck pace, the RegTech industry finds itself at the epicentre of unprecedented change and disruption. FinTech Global had the chance to catch up with Michael J Stanton, CEO at COMPLY, following May’s Global RegTech Summit to discuss the key headlines which are set to dominate the space as we look ahead to the rest of the year.
From the evolving demands of global regulators, to the increasing pressures on Chief Compliance Officers, and the future of Generative AI in the space, Stanton delved into a host of hot topics that are set to take the industry by storm.
Having only joined COMPLY in April of this year, Stanton spoke to FinTech Global about his newfound challenge of dealing with global regulators.
He said, “Maybe more than any other industry I’ve seen, we’ve got sort of an unprecedented level of of change and disruption going on a lot of that driven by global regulators. So, you know, in the UK, of course, the FCA and sort of evolving and changing requirements and demands. In the US, it would be organisations like the SEC, or FINRA, that are sort of similarly driving, you know, those sorts of same demands. And with all that unprecedented change driven by regulators, I think there’s also a a backdrop of Chief Compliance Officers never having a greater demand and pressure put on them.”
Stanton also spoke on Generative AI, which is emerging as a significant trend in the RegTech industry, revolutionising how regulatory compliance and risk management are approached.
With its ability to analyse vast datasets, generate predictive insights, and automate complex processes, Generative AI offers unparalleled opportunities for enhancing efficiency and accuracy in compliance operations.
While currently only a small percentage of firms have integrated Generative AI into their workflows, a substantial number are planning to adopt this technology in the near future. As these deployments increase, Generative AI is poised to become a cornerstone of RegTech, driving innovation and transforming the regulatory landscape.
On the topic of Generative AI, Stanton described the industry’s fascination with it as the “wild wild west.”
This is due to the mass push to adopt the technology on a wider scale – however there is little actual adoption taking place according to COMPLY’s own experience.
“The impact of AI and generative AI is going to be tremendous. Interestingly, only one in ten of our current customers polled are currently using AI, including generative AI, as part of their operations. So, in terms of footprint, it’s rather small at 10%. From a trending perspective, what stands out is that 54 to 55% of those participants polled—a statistically significant sampling size—are in the process of planning to deploy AI. With that in mind, the question becomes: how do they do it? Which is why events like the Global RegTech Summit are great!”
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