Regulatory Technology (RegTech) is a technology that allows firms to easily adapt to the pressure of increasing regulatory reporting, while being cost-effective and secure. This technology allows companies to automate the process of monitoring data. Regtech simplifies the process of regulatory requirements.
In itself, combination of regulation and technology is not new. But regtech companies are gaining attention due to the increased levels of penalties and fines due to the complex regulatory reporting procedures.
Emphasis of regulators on data and reporting has given the birth to the new breed of technology companies. Though similar to risk management companies, regtech companies are unique as they are using the new technologies such as artificial intelligence and machine learning. Regtech also addresses a gap in a financial services industry that is being disrupted at a speedy pace by Financial Technology.
All the reporting can be done in real-time by using big data analytics. RegTech, therefore, fills the current gap in the financial sector by bringing technology to address regulatory challenges, since many firms’ current regulatory practices constitute to legacy and manual processes that are no longer feasible to address the growing list of regulatory obligations.
Additionally, with the growing number of fines imposed on large financial institutions, as well as incidences of money laundering and fraud touching reputable organizations, regulatory bodies are closely monitoring the entire industry and in turn, reporting standards and transparency have become more important than ever before for firms to ensure their compliance. Financial Institutions are especially are under the magnifying glass concerning their regulatory compliance and should have a plan in place to digitize these processes to avoid noncompliance repercussions.
Role of Regtech Times
Regtech Startups are using “new approaches” to check money laundering transactions using social media and biometrics to transform the customer due diligence process. I witnessed that the new age regtech media like RegtechTimes are encouraging the regtech innovations by interviewing regtech solutions providers to understand the thought process involved in addressing the pain points in the era of GDPR, Crypto Currencies and MiFiD and other financial regulation. This is a good initiative. Regtech innovations are expected to gather the momentum by 2020. RegtechTimes is one of the leading news portal on the subject of regulations, compliance and technology.
Regtech Times also initiated the dialogue with woman on board to understand the regulatory requirements and challenges of having the woman on board.