The COVID-19 pandemic has affected each industry in a different way, providing numerous new challenges to overcome as well as unique opportunities to further develop. For many financial institutions (especially brokers), the pandemic environment has meant that it is much harder for them to stay on top of things. Although governing authorities have eased some reporting requirements and extended financial reporting deadlines, the case for the importance of RegTech solutions, particularly automation solutions, has never been clearer. But the real question is: has the pandemic led to an actual increase in demand for RegTech solutions? The answer, according to Ronen Kertis (CEO of Cappitech), is surprisingly yes and no.
While many financial firms have discovered major limitations to their current processes due to a combination of reduced staff and staff having to work from home, the sales life cycle becomes much longer in times of crisis as firms face uncertain times and reduced business themselves. In other words, there is definitely a stronger interest in RegTech solutions, but their purchase and implementation are much longer processes for most firms now. As the world slowly emerges from the crisis period however, it is likely that RegTech solutions will be highly sought after as governments reexamine regulations to better address uncovered weaknesses and firms rethink their business continuity plans.