Software provider Confluence predicts the regulatory landscape in 2018 will highlight a burgeoning industry trend. Datatech, a term the company coined, follows closely on the heels of regtech and the original fintech craze, and is the solution for firms to utilize output data from regulatory filings, according to Todd Moyer, chief operating officer at Confluence.
Fund managers have ramped up their regtech processes in response to calls for transparency from regulators and clients alike over the past year. With 2018 set for a number of regulatory implementation dates, including the updated Markets in Financial Instruments Directive (Mifid II) on Jan.3 and the Securities and Exchange Commission’s reporting modernization rule later in the year, asset managers are under increased compliance pressures going into the new year.
“With the flood of new data and the compiling the asset managers need to do to comply with transparent regulations, they need to adopt a new process and procedure to manage their business differently,” Moyer told Fund Technology. “We envision the next movement around now having all of the data and using it effectively to operationalize your business around a lot of new data points.”
Asset managers leveraging technology to provide predictive analysis on data that has been accumulated from regulatory compliance are essentially performing datatech analytics. Moyer expects the trend to go industry-wide in 2018, with large amounts of data being produced daily, following high regulatory demands.
“We’re looking for efficiencies in the back office for fund admins and asset managers alike,” Moyer said. “It’s the ability to digitalize all of this information. I think technology will continue to play a large part in the transformation we see in the back office.”
Moyer predicts 2018 will hold a rise of datatech trends, which he said extend into the back office where regtech has typically fallen short.
“Regtech has implications beyond the back office,” he said.