As a result of COVID-19 outbreak and the consequent lockdown in various countries, many of the firms found their profitability and processes under unprecedented stress. The pandemic has accelerated digital transformation among financial firms.
Digital transformation is compelling central banks and regulators to restructure and rethink their approaches for becoming resilient, adopting various technologies and constructing an agile operating model, all while offering regulatory services.
Regulatory agencies are encouraging financial firms to adopt digitalization for convenience and transparency. Due to the trend of increasingly complex regulatory requirements regulators and financial firms are finding reporting as a complex and time-consuming task. Adopting regulatory reporting solution may lead to various benefits like more transparent regulation, which the top-most priority for financial firms.
Implementation of technologies such as artificial intelligence, blockchain, and application programming interface helps the regulators to supervise financial markets, identify harm and detect financial crime.
Thus, the demand for regulatory reporting solution is estimated to grow around 11.6% to 13.8% Y-o-Y from 2019 to 2021. The market in U.K. is expected to progress at a CAGR of 19.1% through 2031. In India, sales are expected to increase at a CAGR of close to 21% over the next ten years.
Rapid Shift towards Cloud-based Regulatory Reporting Solutions
The world of cloud, SaaS, and subscription-based subscriptions has upended the old model of on premise-based legacy systems. Most company systems today run on cloud-based systems. On-premise solution is seeing a strong shift towards cloud-based regulatory reporting solutions due to huge benefits provided in terms of operational improvements, higher security and easy multi-site management of access to reap the benefits of limitless scalability.
The adoption of cloud-based systems has become an emerging trend due to the ability to manage multiple sites under a single system. Access levels can easily be managed across all sites. Moreover, it’s possible to manage a infrastructure without compromising security or convenience. In fact, security is strengthened and convenience is higher in this environment.
Cloud-based regulatory reporting solutions is intuitive to use and offers the most flexibility for administrators. Another key benefit that has helped fuel the growing popularity of cloud regulatory reporting solutions is scalability. However, the adoption of cloud based regulatory reporting solution is increasing among SMEs and large enterprises.