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ComplianceFinanceJanuary 25, 2021

Wolters Kluwer FRR and Risk.net survey identifies risktech innovation as key to banks’ competitive edge

More than 80% of risk professionals view risk technology (risktech) innovation as imperative to their banks’ competitive edge, with tech spend being directed towards effectiveness rather than cost reduction. That’s according to a new survey and white paper, “Sharpening risktech’s cutting edge: Maximising value from risktech investment”, published by Wolters Kluwer’s Finance, Risk & Regulatory Reporting (FRR) business in association with Risk.net.

Risk.net interviewed more than 80 senior risk and technology professionals at leading banks globally and found respondents to be distinctly lukewarm in their assessment of existing risktech systems.

Around 61% described the overall performance of their systems as fair, poor or very poor, citing a lack of clear business objectives and internal wranglings over project priorities and scope as the two main barriers to effective risktech investment. Notably, 76% of respondents are planning upgrades in the next two years, with cloud infrastructure and artificial intelligence applications being the two most likely directions for developing risktech, while blockchain and big data are seen as longer‑term opportunities. Data analytics and management, however, are also seen as being in need of immediate investment.

There is genuine desire to enhance risktech applications and infrastructure, driven by business evolution and internal perception of emerging technologies’ potential value. In fact, risktech implementation can provide hidden value when aligned with enterprise tech, data transformation and other external initiatives, including those driven by regulatory bodies.
Jeroen Van Doorsselaere, Vice President of Global Product & Platform Management for Wolters Kluwer FRR

Chief Risk Officers (CROs) noted how incorporating risk is top of mind as banking enterprises evolve. Likewise, banks have identified existing areas of deficiency where further optimisation and automation are required. But, just as crucially, according to the CROs interviewed for the survey, costcutting alone won’t do the trick, meaning emerging technology and its implementation must emphasise holistic benefits and durability over short-term gains.

To help with such concerns banks are turning to OneSumX for FRR, Wolters Kluwer FRR’s best-in-class integrated regulatory compliance and reporting solution suite that establishes a single source of data for finance, risk and regulatory reporting that is enriched with value-added content from in-house experts.

Governance, Risk & Compliance is a division of Wolters Kluwer, which provides legal and banking professionals with solutions to help ensure compliance with ever-changing regulatory and legal obligations, manage risk, increase efficiency, and produce better business outcomes.
About Wolters Kluwer

Wolters Kluwer (WKL) is a global leader in professional information, software solutions, and services for the health, tax & accounting, governance, risk & compliance, and legal & regulatory sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services.

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