Regtech: "How Compliance Investments Can Improve Business Performance"


Reporting through a true financial performance platform will allow you to accomplish financial, management, external and regulatory reporting all from one source. The time savings, cost savings and risk reduction of doing it this way with the opportunity to use this required spent on Regtech to meet regulatory requirements like IFRS also provides the opportunity to improve the entire reporting process rather than spending on another standalone solution that only addresses IFRS.

Regtech is the use of new technologies to solve regulatory burdens more effectively and efficiently and is a new buzzword in our software space. After regulations like Basel II and III, Solvency II and the upcoming IFRS 4.2, 9, 15 and 16 companies are facing an increasing burden at much higher costs for compliance. Regtech should help companies to automate this and reduce the associated costs for compliance, which is mostly a must have.

How can you turn this burden into a dream come true to use compliance investments to improve business performance?

As a software vendor we need to evolve to a content provider. This means that we provide with the software the contents and maintenance on regulation to unburden our customers. This is not enough by itself, as there is more to it. This needs to be done via a data driven approach. A data driven approach means that the data is collected once to be used in multiple reports in order to avoid reconciliation issues between e.g. a Finrep report with an IFRS report at a bank. The orchestration to collect data, process data for consolidation and report to multiple stakeholders with an audit trail makes a company compliant for accountability to the various stakeholders.

What if, this is the starting point towards improving business performance? Today's technology with more sophisticated integrated software are much better able to support the performance management process from a single financial performance platform, which consist of:

Tagetik as Regtech to meet regulatory requirements


Key steps in a unified performance management process:

  • Modeling - defining high-level goals and objectives and business models.
  • Planning - annual financial and operational plans and budgets, rolling forecasts.
  • Reporting - financial close, consolidation and delivering results to internal and external stakeholders for review.
  • Analytics - comparing actual results to the original plan, across multiple dimensions gaining an understanding of “why” the results vary from the benchmark and decide on actions to improve business performance.


As you can see from this close loop model analytics and forward looking are important as well and both actual data (also required for compliance) can be used to monitor and take action to improve business performance. The magnitude of required and available data can be used for the same purpose to better steer the company. Once this is realized with an integrated platform (in house or cloud) with content solutions, companies in all industries can reduce the burden of compliance and improve business performance.

In the Netherlands we have a number of business cases of companies, who realized that their current legacy systems for compliance (close, consolidation and reporting) from e.g. IBM, Oracle and SAP are not meeting their requirements to be unburden from compliance with the upcoming IFRS regulation. At the same time they see the upcoming regulation as an opportunity to implement an integrated platform to be compliant. And as a next step to add analytics, modelling and planning to have forward looking insight to improve business performance in the longer term to benefit all stakeholders.



Tagetik as Regtech to meet regulatory requirements

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