In this blog, we introduce another one of our RegTech Market categories, General Compliance, and shed some light on a few important use cases within this broad cohort of products. We then take a deep dive into the world of Marketing Compliance and Training and Learning solutions and explore how novel vendor technology is being used to automate and revitalise routine but critical tasks.
Since the RegTech industry was largely borne out of the 2008 financial crisis, products that protect institutions against financial crime or manage regulatory data and risk have often received the most attention. Too often we see RegTech coined as a subset of FinTech, an association that can sometimes lead us to believe that these solutions are limited to addressing financial regulation. The reality is, compliance is a challenge for any organisation and we are seeing a growing number of RegTech vendors develop solutions that are ‘regulation agnostic’, meaning these tools can be utilised to support almost any organisation, no matter their specific compliance requirements.
The General Compliance category of our RegTech Taxonomy champions a range of products with broad use cases. Mortgage Compliance software, for example, runs compliance checks and loan audits in real-time to comply with all relevant regulations for residential loan documents. And products in the Compliance Management sub-category can automate entire compliance programmes to enable robust compliance oversight. The General Compliance Market Map (pictured below) illustrates our breakdown of the General Compliance category into six distinct subcategories. Two subcategories where we are seeing some exciting products emerging are Training and Learning Solutions and Marketing Compliance.
Training and Learning Solutions
Employee training is one of the most cost-effective and efficient ways for organisations to reduce their compliance burden and is mandatory for some aspects of regulation, such as anti-money laundering. Yet, effective compliance training is difficult to achieve as the topics can appear somewhat dry and can often end up just being a tick-box exercise. RegTech vendors in the Training and Learning sphere are applying cutting edge technology to approach these challenges in new and innovative ways. E3 are tackling the mundanity of compliance training head-on by using gamification to capitalise on our competitive human nature. Creating interactive mini-games and leaderboards enables organisations to foster healthy office rivalries and encourages employees to participate in training pursuit of boosting their respective ranks.
SkillCast has extended its Learning Management System to cover other areas of staff compliance by integrating it into a broader ethics and compliance platform. This enables organisations to keep all staff training modules and relevant documentation in one centralised, online compliance portal. By doing this, the SkillCast platform offers an end-to-end employee compliance solution, allowing for efficient collaboration, reporting and auditability.
Marketing is an essential part of any business. It drives brand awareness, cultivates credibility and builds trust, but with regulators, competitors and other organisations keeping a close eye on your marketing activities, compliance is becoming just as important as creativity. Marketing regulation is in place to protect the privacy of consumers and to ensure they are not misled by businesses. Advertising, disclosures, websites, email and video marketing can all come under fire and monitoring compliance across these channels can be a time-consuming process.
Vendors in the Marketing Compliance category are leveraging natural language processing and machine learning to automate the marketing compliance process. Law of the Jungle’s marketing compliance platform reviews marketing material against global legislation to identify compliance risks and suggests necessary amendments. The cloud-based platform facilitates seamless document collaboration by enabling multiple employees to make annotations simultaneously, a feature that has become ever more critical in the post-pandemic remote work environment. Overall, platforms such as these enable organisations to speed up the marketing campaign process and reduce the risk of human error, enabling organisations to harness the competitive advantages from a compelling marketing campaign.
There is much more to explore within General Compliance because the solutions are diverse and are tackling many different use cases. To help you understand it better, we’ve created a market assessment that explores product maturity as well as some of the emerging trends.
Download a copy of the market map and market assessment from our Premium Content.