We are living in times increasingly marked by uncertainty. Even in Europe, where economic and social stability had not been in crisis in decades. Just think of the Covid-19 pandemic, the environmental crisis, the war in Ukraine and its consequences on the energy market. But not only that. Also the protests against regimes erupted around the world - from Iran to China, from Peru to Russia. In this highly unstable context, however, there is at least one certainty about the future: 2023 in finance will be the year of regulation - and compliance. Yes, because the continuous and rapid technological, social and environmental changes require an effort by regulators to ensure that innovation takes place within a regulatory framework that protects all parties involved. Focusing on the financial sector, the regulatory challenges to be faced are many and decisive - as we will see. And, in such a context, an increasing legislation will lead to an increasingly central role for financial compliance. Therefore also to the growing need for RegTech solutions that can automate compliance processes in all those steps where humans do not add value. Just as Daitomic, our RegTech SaaS, does.
As we wrote a few lines ago, the financial sector's regulatory challenges for 2023 are many and crucial. Without aiming to be exhaustive, we wanted to collect the most important ones. Or at least the most recent ones, since they concern the areas that regulators themselves wanted to highlight in the early days of the new year that has just begun.
In short, a real series of regulatory challenges, issued by European and Italian regulators to financial institutions for 2023. Challenges that do not end with this list. But how can this need for accurate and real-time regulatory updates be addressed? How can compliance activities become faster and more reliable? The answer may seem obvious: by introducing automation into financial compliance processes. Sure. But how to do it in a way that truly brings accuracy and efficiency, and not rather confusion? Through a long and careful analysis of the banking industry, at Aptus.AI we have identified the steps in compliance processes that can be automated, namely those of so-called regulatory alerting. This process consists of the collection and analysis of regulatory updates, aimed at assessing their relevance to the individual financial institution and the possible need to proceed with a risk assessment. And our SaaS designed for the RegTech market, Daitomic, is already able to automate all these steps of compliance processes, automatically extracting regulatory obligations and thus preparing a first-impact analysis, which also takes into account internal processes and policies, to answer the needs generated by an ever-changing regulatory framework such as the one just described.
But not only that. The increasingly central role of compliance in banking can and should also be leveraged by financial institutions to gain a competitive advantage from it. Yes, because the proprietary AI technologies underlying Daitomic transform legal documents into a standard machine readable format and analyze them through Artificial Intelligence with a holistic - supporting all regulatory domains - and multilingual approach - supporting all European Union languages. In a cross-regulatory and cross-country context, this technology therefore enables not only the reduction of time and costs for the transposition of financial regulatory updates, but also the analysis of the documents under discussion, offering for the first time the possibility to anticipate regulatory trends, therefore to develop proactive compliance strategies that support business. To try this opportunity firstand, you just need to book a demo of Daitomic by clicking below!