Over the last few years, risk and compliance function has been a top priority for many banks and financial services organisations, with initiatives spanning across adoption of newer regulatory compliances, stress testing, model risk management, and focus on emerging risks like climate risk, to name a few. Come 2024, as per industry reports, the spend in risk and compliance is expected to grow by 14% in 2024 with the spotlight around heightened regulatory scrutiny, newer regulatory initiatives, and technological adoptions to drive optimisation and efficiencies within the function which will eventually help to meet the business demands and expectations for 2024 and beyond. Continue reading…

Generative Artificial Intelligence or Gen AI as it is popularly called has recently emerged as a technology enabler which is seeing a lot of use cases across the banking industry. Currently, many banks are trying to experiment with this new tool and understand amendable areas that can benefit from this technological intervention. Adoption patterns currently indicate that many banks and financial institutions are starting small with internal use cases to understand and analyse the efficacy of this intervention. Within the banking sector, Gen AI has a lot of applications in the risk and compliance value chain across areas of Risk Identification, Risk Assessment, Risk Monitoring and Risk Reporting. As per industry estimates, market size is expected to grow at a CAGR of 34% (approx.) in risk and compliance management. Given the focus of regulatory scrutiny on the adoption of Gen AI in the risk and compliance function, currently the initial set of use cases are more focused on augmenting the existing functions rather than fully automating them, hence the adoption of Gen AI is slowly but steadily progressing. Integration of Gen AI with the existing RegTech tools can yield a lot of benefits in terms of improved automation and cost savings which will make the current processes more efficient and also enable near real time decision making as well in certain risk and compliance functions. Continue reading…