Linked Data in Regtech: Boosting Compliance and Performance

December 9, 2016 4 mins. read Milena Yankova

The Regulatory Reporting and Compliance Challenge_01

Earlier this year, in a report, describing what the ‘RegTech’ buzz is in just one sentence, the Washington-based Institute of International Finance (IIF) said:

Regtech is the use of new technologies to solve regulatory and compliance requirements more effectively and efficiently.

Discover more about our Financial Services Industry Solutions!

 

The Regulatory Compliance and Reporting Challenge

In recent years, financial institutions have been facing constant regulatory changes and updates. As a result, businesses are continuously asked to adopt newer and more complex sets of rules.

The various banking supervisory authorities in Europe alone as well as their constantly changing capital and minimal reserves requirements for banks is just one example of how many different regulations a single financial institution needs to process, adopt, comply with and report regularly to authorities.

The financial markets authorities for listed companies, the competition authorities at both national and supranational level and just about any regulator in any industry have been piling up an ever-growing list of regulatory updates for businesses to digest.

What’s more, companies need to act on these regulations within a set timeframe. They also need to ‘translate’ the new legislation into their own articles of association and the way they run their internal processes, which drives up the costs of compliance and reporting.

Regtech and Linked Data Teaming Up for Seamless Data Integration

RegTech and Linked Data Teaming up for Seamless Data Integration

To address the piling regulatory requirements, a kind of a ‘spin-off’ from FinTech has emerged – regulatory technology or RegTech. Its aim is to help companies deal with the heaps of data demanded by the regulators on the one hand and the huge data they need to go through to understand and implement these requirements, on the other.

RegTech, coupled with Semantic Technology, opens up opportunities for both enterprises and financial institutions to reduce exposure to risk and cut expenses for lengthy and costly compliance and reporting processes.

The use of semantic data integration is a powerful and simple way to consolidate diverse data from disparate sources in various formats. It helps reveal locked knowledge and provides valuable business insights.

rganizations using regtech find value in the resources they save by replacing lengthy and costly regulatory processing with smooth data integration

How Semantic Technology and Linked Data Make Compliance Easier

Put it simply, RegTech combines information from legislation and regulations available to the public with enterprise-specific policies and procedures. Here, the power of Linked Data to provide one-point access to all this information enables companies to see a more structured picture of regulatory concepts and identify relationships between concepts in the legislation and their internal processes and procedures.

Thus, the legislative lingo of regulatory authorities (which even humans struggle to understand) becomes machine-processable information mapping identical concepts in different sources and can be indexed for easier search and discovery. Share on X This enables businesses to adapt to the constant regulatory changes quickly and at a lower cost.

The power of Semantic Technology to make better sense out of complex regulatory data empowers businesses to gain insights from advanced data analytics and can improve every step of the regulatory compliance and reporting process.

Leveling Up on Compliance: Predictive Analytics for Improving Regulations

Leveling up on Compliance: Predictive Analytics for Improving Regulations

The ability to link employee and customer behavior with geospatial data, historical data or social media data can also reveal potential fraud concerns. By flagging fraud attempts, enterprises not only enhance their own compliance with the rules but also contribute to improving the regulatory framework of their industry by reporting valuable insights to authorities.

A better operating regulatory environment, coupled with Semantic Technology able to reduce compliance costs, also works toward leveling the playing field for smaller businesses when they make their way into a given industry. Increased competition leads to more choices for consumers and more satisfied customers mean more opportunities to expand markets.

According to EY’s global governance, risk and compliance survey 2015, 85% of respondents surveyed said that they see an opportunity to additionally improve the linkage between risk and business performance.

Organizations are able to clearly identify the key risks to ‘own’ that not only result in negative consequences but also those that generate value, enabling a direct linkage between risk and business performance, say EY in their survey.

RegTech Takeaways

Organizations using RegTech and SemTech find value in using smarter data to gain deeper insights. By replacing lengthy and costly regulatory processing with smoother data integration of external and proprietary sources, companies also save significant resources.

In a nutshell, semantically-enriched RegTech leads to minimizing risks and maximizing opportunities for boosting business performance and revenue.

Want to learn more about smart data integration with the help of a semantic graph database?

Learn how semantic technology can help you face regulatory challenges!

New call-to-action

Article's content

A bright lady with a PhD in Computer Science, Milena's path started in the role of a developer, passed through project and quickly led her to product management. For her a constant source of miracles is how technology supports and alters our behaviour, engagement and social connections.

Linked Data Solutions for Empowering Analytics in Fintech

Read about how FinTech can use the power of Linked Data to put data into context and expose various links between these concepts.

Semantic Technology: Creating Smarter Content for Publishers

Learn how semantic technology helps publishers create better content publishing workflows and improved content consumption for readers.

The 5 Key Drivers Of Why Graph Databases Are Gaining Popularity

Read about the 5 key characteristics of graph databases – speed, meaning, answers, relationships, and transformation.

GraphDB Migration Service: The 10-Step Pathway from Data to Insights

Welcome to our GraphDB Migration Service that helps you prepare for migrating your data to GraphDB, walks you through the setup and monitors performance.

Fighting Fake News: Ontotext’s Role in EU-Funded Pheme Project

Read about the EU-funded project PHEME aiming to create a computational framework for automatic discovery and verification of information at scale and fast.

Semantic Technology: The Future of Independent Investment Research

Learn how independent research firms use cutting-edge technologies to add value to research pieces and monetize the content they offer.

Top 5 Semantic Technology Trends to Look for in 2017

Read about the top 5 trends in which Semantic Technology enables enterprises to make sense of their data and fine-tune their offerings to customers.

Ontotext’s 2016: Our Top 7 Webinars Of The Year

Data shows that in 2016 we had a total of 22 webinars that attracted over 7 000 people – here are the 7 best webinars!

Ontotext’s 2016: What Did You Liked The Most On The Blog

Nearly 10 000 people read our blog in 2016 and the following 5 posts gathered most interest.

Linked Data in Regtech: Boosting Compliance and Performance

Learn how regulatory technology, coupled with semantic technology, can help enterprises and financial institutions reduce exposure to risk.

How Data Integration Joined the Music Hit Charts

Learn how today it is the Internet, data integration, and tailored recommendations that stage the music scene for the new Bob Dylans.

Open Data Innovation? Open Your Data And See It Happen

Learn how open data trend-setting governments and local authorities are opening up data sets and actively encouraging innovation.

Linked Data Innovation – A Key To Foster Business Growth

Learn how freely available and machine-readable Linked Open Data enriches organizations’ data and helps them discover new links and insights.

Linked Data Approach to Smart Insurance Analytics

Read about how Linked Data and semantic technology can enrich data and pave the way to advanced analytics.

Linked Data Paths To A Smart Tourism Journey

Read about how the tourism industry can benefit from Linked Data and big data analytics for wiser investments and higher profits.

Linked Data Pathways To Wisdom

Learn about the linked data pathways to wisdom through ‘who’, ‘what’, ‘when’, ‘where’, ‘why’, ‘how to’ and, finally, ‘what is best’.

Taking Semantic Web to its Next Level with Cognitive Computing

Learn about the new age of cognitive computing and integrating its concepts into two decades of semantic web growth.

Open Data Play in Sports Journalism And EURO 2016

Read about how open data gives those modern-day Sherlocks the bases of their stories.

Open Data Sources for Empowering Smart Analytics

Learn how Open Data and how more businesses use data analytics to gain insights, predict trends and make data-driven decisions.

Journalism in the Age of Open Data

Learn how governments and authorities can start relying more on journalism to promote the use of open data and its social and economic value.

Building Linked Data Bridges To Fish In Data Lakes

Learn how enterprises can build bridges to extracting more powerful and more relevant insights from their Big Data analytics.

Open Data Use Cases In Five Cities

Learn how London, Chicago, New York, Amsterdam and Sofia deal with open data and extract social and business value from databases.

ODI Summit Take Out: Open Data To Be Considered Infrastructure

Learn about The ODI’s second Summit with prominent speakers such as Sir Tim Berners-Lee, Martha Lane Fox and Sir Nigel Shadbolt.

Highlights from the “Mining Electronic Health Records for Insights” Webinar

Read some of the Q&As from our webinar “Mining Electronic Health Records for Insights”.

Highlights from ISWC 2015 – Day Three

The 14th International SemanticWeb Conference started three days ago and Ontotext has been its most prominent sponsor for 13 years in a row.

Highlights from ISWC 2015 – Day Two

The 14th International SemanticWeb Conference started three days ago and Ontotext has been its most prominent sponsor for 13 years in a row.

Overcoming the Next Hurdle in the Digital Healthcare Revolution: EHR Semantic Interoperability

Learn how NLP techniques can process large volumes of clinical text while automatically encoding clinical information in a structured form.

Highlights from ISWC 2015 – Day One

The 14th International SemanticWeb Conference started three days ago and Ontotext has been its most prominent sponsor for 13 years in a row.

Text Mining to Triplestores – The Full Semantic Circle

Read about the unique blend of technology offered by Ontotext – coupling text mining and RDF triplestores.

Text Mining & Graph Databases – Two Technologies that Work Well Together

Learn how connecting text mining to a graph database like GraphDB can help you improve your decision making.

Semantic Publishing – Relevant Recommendations Create a Unique User Experience

Learn how semantic publishing can personalize user experience by delivering contextual content based on NLP, search history, user profiles and semantically enriched data.

Why are graph databases hot? Because they tell a story…

Learn how graph databases like GraphDB allow you to connect the dots and to tell a story.