How human expertise and technological efficiency work together for stronger regulatory outcomes and competitive edge.
Originally published in FinanceX Magazine 2025 issue #12
As part of our new strategic partnership with FinanceX Magazine, we’re pleased to share our recent article from their latest issue exploring how financial institutions can balance technological solutions with human expertise in regulatory compliance. This piece highlights the challenges in RegTech implementation and offers practical approaches that align with Contentifai’s human+AI philosophy.
Despite significant investment in regulatory technology solutions, many European financial institutions still struggle with implementation. The often overlooked success factor? The human element in how RegTech is communicated, understood, and integrated into organisational culture.
Table of Contents
- The Communication Gap: Why Great Technology Goes Unused
- Trust Matters: Can We Rely on Algorithms for Compliance?
- How to Foster A Human-Centred Approach to RegTech
- Effective RegTech for Competitive Edge
- A Strategic Approach to Complex Financial Communications
The Communication Gap: Why Great Technology Goes Unused
Financial professionals know the compliance burden all too well. The promise of regulatory technology to ease this challenge is compelling, which explains why institutions that successfully implement RegTech solutions report high satisfaction. According to the European Banking Authority, 70% of financial institutions express satisfaction with RegTech’s value once implemented (EBA, 2022).
Yet the path to adoption remains surprisingly difficult for many organisations. 67% of financial institutions cite a lack of awareness about available solutions as their primary barrier to RegTech adoption (Aspectus Group, 2024). This knowledge gap exists not because the technology is unavailable, but because the conversations around it often miss what matters most to institutions.
The EBA’s analysis uncovered something particularly revealing. There’s a fundamental misalignment between how RegTech providers promote their solutions and what financial institutions actually value. While providers frequently emphasise cost reduction in their messaging, institutions care more about enhanced risk management, improved monitoring capabilities, and reduced human error.
When we look closely at this misalignment, we find it creates roadblocks during the procurement and implementation phases. Technical capabilities that aren’t translated into institutional value propositions mean potentially transformative solutions remain on the shelf.
Trust Matters: Can We Rely on Algorithms for Compliance?
But awareness is just the beginning of the challenge. At its core, this is about trust. Financial institutions must navigate the delicate balance between leveraging technology for compliance efficiency and maintaining the human judgment that builds stakeholder confidence.
For compliance professionals, the question isn’t simply whether RegTech solutions work. They need to know if these systems can be trusted with high-stakes regulatory responsibilities. This trust factor becomes increasingly important as we approach 2025, which brings significant regulatory changes across Europe.
The European Commission has introduced multiple regulations with phased implementation approaches that will see major obligations come into effect throughout 2025 (Akin Gump, 2025). These developments include the anticipated “Competitiveness Compass” initiative and an “Omnibus” bill, alongside updated frameworks for cryptocurrencies, digital assets, and artificial intelligence applications.
As compliance requirements grow more complex, the institutions that effectively balance technological capabilities with human oversight gain a significant advantage. Building trust in RegTech requires transparency about both capabilities and limitations, with clear communication about where human judgment remains essential.
How to Foster A Human-Centred Approach to RegTech
How can institutions address these challenges? Consider this structured approach that addresses both technical capabilities and human concerns:
- Strategic Alignment Conversations: Before engaging with RegTech providers, establish clear internal alignment between compliance objectives and technological capabilities. This preparation helps your team communicate actual priorities effectively, ensuring providers focus on relevant solutions rather than misaligned features.
- Transparent Value Communication: Develop communication approaches that clearly connect technological capabilities to specific regulatory requirements. Quantify potential benefits using metrics meaningful to your stakeholders and acknowledge implementation challenges alongside benefits.
- Multi-Level Stakeholder Engagement: Tailor your message to different audiences, from regulators requiring evidence of compliance to operational teams concerned about workflow changes. Successful RegTech implementation requires buy-in at all organisational levels.
- Technology-Human Balance Messaging: Explicitly address how RegTech solutions complement rather than replace human judgment. Emphasise how technology enhances human decision-making, clarifies which processes remain under human oversight, and demonstrates safeguards against algorithmic biases.
Effective RegTech for Competitive Edge
Financial institutions that effectively communicate about RegTech, both internally and externally, gain significant competitive advantages. They accelerate the adoption of solutions that enhance compliance outcomes while building the stakeholder trust necessary for successful implementation.
As updated European regulations continue to roll out throughout 2025, this balanced approach will be increasingly valuable. By addressing both technological capabilities and human elements in RegTech communication, institutions can navigate complex requirements while maintaining the trust that underpins financial stability.
Compliance isn’t about choosing between human expertise and technological efficiency. It’s about showing how they work together to create stronger regulatory outcomes. Financial institutions that strike this balance position themselves for a significant competitive advantage, especially as compliance requirements continue to increase in complexity.
A Strategic Approach to Complex Financial Communications
At Contentifai, we help financial institutions transform how they communicate complex topics. Our unique blend of human expertise and AI capabilities enables banks, fintechs, and financial teams to explain technical concepts clearly while maintaining regulatory compliance and building trust with stakeholders.
We deliver strategic inbound content marketing campaigns, train brand-aligned agentic AI models, and AI content training. Our team combines human expertise with AI capabilities to help financial institutions communicate complex topics clearly and compellingly.
Want to learn how our approach could improve your financial communications? Book a discovery call to discuss your specific challenges and opportunities.
You can read the original post as well as other financial insights in the latest issue of FinanceX magazine here.
Reading
European Banking Authority Analysis of RegTech in the EU Financial Sector (2022)
Communication and Compliance: How RegTechs Can Stand Out in a Growing Market (Aspectus Group, 2024)
2025 Key Dates for EU Trade and Regulatory Developments (Akin Gump, 2025)
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