RegTech ++
As nations grow economically, new challenges and risks emerge, necessitating robust regulatory frameworks to protect public interests. Developed countries, in particular, implement comprehensive regulations across various sectors, including banking, stock markets, legal systems, insurance, auditing, healthcare, food security, environmental protection, natural resources management, radio frequency management, transportation (aviation, maritime, and road), education, consumer affairs, and competition. Despite debates on the extent of regulation, there is a consensus on its necessity for maintaining order and safeguarding interests in high-income nations.
While regulations are essential, they can also impose significant burdens on businesses. Therefore, the optimal regulatory framework should aim to minimize overhead while ensuring necessary transparency, security, risk management, and preventive measures.
At Nastavia, we specialize in helping regulatory bodies enhance and streamline their activities through our expertise in three key areas:
1. Machine-Readable Regulations
Regulatory foundations are typically based on legal requirements, which are often complex and geared towards legal professionals, leading to potential misinterpretations and violations.
Nastavia offers a regulatory model based on our Develometrics framework, enabling machine-readable definitions for most regulatory scenarios. This approach provides regulated entities with clear, machine-processable inputs for their compliance systems, facilitating precise reporting to regulators and maintaining compliance metrics within established limits.
2. Data Collection and Analysis
Accurate and timely data collection from regulated entities is vital for continuous oversight. Regulatory bodies need robust systems to gather, process, and analyze data to ensure compliance and detect issues before they escalate. This demands sophisticated data integration and analytics capabilities to handle diverse data types effectively.
However, many regulators worldwide rely on outdated methods, standards, and file formats, complicating data collection. This "new normal" often forces regulated businesses to invest heavily in outdated practices. Additionally, the modern trend of a "data-centric approach," where regulators collect vast amounts of data with the hope of finding future uses, can lead to inefficiencies.
Nastavia assists regulators in achieving desired outcomes and risk management levels without overcomplicating data collection. We emphasize efficiency and modern, lightweight approaches to meet regulatory needs.
3. Proactive Oversight
Transitioning from reactive to proactive regulatory and supervisory efforts is crucial for preventing issues rather than merely responding to them. Proactive oversight involves continuous monitoring and real-time data analysis to identify trends, detect anomalies, and take preemptive actions. Effective proactive oversight mitigates risks and ensures a more stable regulatory environment.
Nastavia supports this transition by advocating for the "absolutely necessary data" paradigm. Combined with field-verified algorithms and AI features, our approach delivers superior results compared to "collect all" practices.
With extensive experience in banking, finance, energy, and environmental sectors, Nastavia is the ideal partner for fostering effective cooperation between regulators and regulated entities. We exceed required risk management levels and eliminate non-compliance through our innovative solutions. RegTech ++ from Nastavia, is much more then just RegTech, it is a new paradigm for regulation and supervision.
