It’s no secret that the banking and financial services industries are under the increasingly watchful eye of regulators. As more digital technologies make their way into these industries in 2023, regulators are gearing up to impose new regulations focused on the digital banking space.

Monitoring for regulatory change in 2023 is essential, as banks must ensure they can keep up with the rapid evolution of compliance requirements in the digital era of finance. Establishing a high-functioning regulatory framework requires both digital resources and human talent alike.

In this article, we discuss key predictions for regulatory change in 2023, as well as three ways banks can better monitor for regulatory changes.

Keep reading to learn how CPQi (an Exadel Company) can help fortify your institution against the challenges of compliance.

Predictions for Regulatory Change in 2023

In terms of what banks can expect from regulators in 2023, it’s a fairly mixed bag. Currently, many national-level regulators are working to determine how to combat economic headwinds caused by rising inflation, ongoing socio-political conflicts, and other factors.

Here are three key predictions for what to expect from regulatory change in 2023:

  • Greater Emphasis on Digital Assets: For cryptocurrencies and other digital assets that have grown in popularity over recent years, that popularity is finally beginning to result in closer attention from regulators. Much of the focus of digital asset regulation is on how to better protect the consumer, ensure market integrity, and reduce systematic risks.
  • Increased Need for Compliance Talent: Creating a compliance system capable of handling rapid regulatory change means a bank needs a more robust compliance team. Winning talent from the pool of compliance talent looking for employment is highly competitive, leading to a need for alternative solutions for gaining access to talent in 2023.
  • Improved Consumer Protections: Banking regulators are not just increasing their focus on digital assets but on the digital evolution of the industry as a whole. Now more than ever, regulators are going to be looking for flaws in the systems that fail to properly protect the consumer, working to mitigate those risks.
Regulatory Changes

3 Ways to Monitor for Regulatory Changes in 2023

Monitoring for regulatory change is essential to any powerful compliance framework.

With the right approach to regulatory monitoring, a bank or other financial institution can ensure they stay ahead of the regulatory curve and keep their compliance systems rapidly up to date.

Here are three ways to monitor for regulatory change in 2023:

1. Implement Automated Solutions

The simplest solution to keeping up with regulatory monitoring is automation — yet implementing and maintaining automated technologies offers a fair amount of complexity.

When utilizing automation, banks need to consider how to make the most efficient use of it. According to a recent report from Deloitte, banks need to focus their use of automated technologies on data systems and activities — such as data extraction, data aggregation, reporting, documentation, and more.

To do so, banks must focus automation efforts on enhancing these systems and helping to standardize key processes, like data aggregation.

2. Leverage Staff & Resource Augmentation

For banks that do not already have robust in-house IT departments dedicated to compliance issues, finding an adequate amount of staff talent and resources can be difficult.

Staff and resource augmentation provide banks with the option to skip the recruiting and onboarding process altogether. Through augmentation services, banks can gain immediate access to talented experts and technological services leveraged for custom-designed solutions made to fit the bank’s exact needs.

With this type of service at a bank’s disposal, it is far easier to not only implement automated technologies but also ensure those technologies are well-maintained and managed.

Speaking of management, let’s jump into our third and final tip for monitoring regulatory change in 2023 — increasing operational flexibility through the support of managed services.

3. Gain Greater Flexibility with Managed Regulatory Services

Managed services are a type of solution that leverages long-term partnerships with FinTech providers.

Through managed services for regulatory systems, banks can enjoy on-demand access to staff and resources available for not just implementations but also ongoing technological support. These types of services are intended to be a crucial support pillar for banks and other financial institutions, allowing the bank’s staff and operational resources to maintain better overall flexibility.

For instance, rather than having to create an entirely new in-house department for compliance technology management, a bank can instead utilize managed services for this purpose. In turn, the staff that would have been sent to this new department can spend more time focused on more front-facing client opportunities.

Final Thoughts

Regulatory change is coming in 2023, whether banks are ready or not.

To monitor for regulatory change with efficiency and accuracy, partner with CPQi (an Exadel Company). Our talented teams are experts in the nuances of compliance and can help ensure that both your digital infrastructure and your business team are supported throughout times of regulatory change.

To learn more about CPQi’s tailor-made solutions, contact the CPQi team today.

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