Over half (55%) of corporates have increased the size of their compliance teams in response to the mounting regulatory pressures that have emerged over the last five years, according to a new study commissioned by Intertrust.
Intertrust is a global leader in providing expert administrative services to clients operating and investing in the international business environment.
It surveyed over 500 executives to identify how firms are responding to increasing regulation and their use of technology. Four-in-ten (38%) said they had invested in new technology solutions, with the same proportion increasing their use of external advisors and consultants. Only 17% of firms said they had taken the step of simplifying their business operations to reduce the regulatory burden, preferring to dedicate extra resources to ensure compliance.
With corporates adopting a range of measures to respond to regulatory obligations, respondents believed that technology will play a pivotal role in maintaining compliance with new regulations, with 87% of firms predicting that demand for RegTech solutions will increase in the next two years.
Here, the leading driver was acquiring off-the-shelf products, cited by 63% of corporates, followed by hiring technology experts (50%), investing in research and development into proprietary technology solutions (33%), and undergoing M&A / JV activity to acquire new solutions (20%).
Jan Willem van Drimmelen, global head of corporate services at Intertrust Group, said, “Disruptive technology is playing an increasingly significant role in the development of corporates across all sectors for both compliance and day-to-day business operations. This presents a number of challenges for corporates that must decide how best to adapt to a changing environment and acquire the necessary technology and skills through M&A, off-the-shelf products, research and development or external support.”