As more financial services companies turn to RegTech to ensure they meet their compliance targets, the need for tech professionals to supervise it is skyrocketing.
MirrorWeb, the Manchester-based RegTech company, has released a new infographic that explains why financial services in general and asset management firms in particular need a chief technology officer (CTO).
The research comes at a time when regulators around the world have increased the regulatory pressure on every aspect of the finance industry.
Kicking off, MirrorWeb explained that many asset management companies have realised that the way to cut time and cost when it comes to ensuring compliance with regulations is to invest in technological solutions.
Indeed, across the asset management segment of the industry, the average number of IT staff increased from 3,900 in 2012 to 4,300 in 2017, according to Investment Association research cited by MirrorWeb.
Moreover, 73% of senior financial services decision-makers believe they must soon recruit a CTO. Within private equity that figure jumps to 86% of senior managers who expect the need to hire a CTO at board level by 2023.
Yet, many of these firms struggle to source the right talent with 39% of senior financial service decision makers saying that there is a skills shortage in the RegTech space, according to FSTech research cited by MirrorWeb.
“This area of technology is incredibly new and being created at the same pace as the regulations are being written,” MirrorWeb explained. “Therefore, there is a lack of skilled personnel who know how to use this technology and integrate it into a business model. This has further heightened the need for a CTO throughout the asset management industry.”
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