What are the growing areas in Regulatory Technology Domain ?

Regtech intends to build up an item which uses Information Technology and encourages money related establishments to improve their administrative procedures. Regtech is currently a rising field as a result of numerous advantages like.

Other than these Regtech arrangements are nimble, quick and fast and help to make a basic answer for complex information. It is an innovation that enables firms to effortlessly adjust to the weight of expanding administrative prerequisites while being savvy and secure. This innovation will enable organizations to computerize the way toward checking information and facilitate the revealing procedure to administrative bodies.

Regtech solutions are developed by various technologies like Machine Learning, Big Data Analytics/Data Mining, Cloud Computing and Artificial Intelligence. Inputs for these solutions are mostly big data sets.

  1. Machine Learning- It is an ability of Computer Systems to recognize complex patterns, to build relationships using large unstructured datasets. Machine Learning can be a useful tool for risk management. It can be used to identify risk factors in data. Self-learning and risk models can be fed with large datasets and can be used to diagnose market risk factors accurately. Prediction analysis tool can be built by use of Machine Learning, in which the tool will predict the risk factors in the data.
  2. Data Analytics/Data Mining- This method is generally used to create a structured format for big unstructured data. Nowadays structuring the collection of complex and large number of data has become challenging for financial firms. Hence Data Mining is widely adopted. It is now being used to identify suspicious activity holistically and on real time basis which helps combating financial crime. It is also used to analyze large datasets of client activities to detect unusual patterns.
  3. Cloud Computing- It is a delivery of computing services such as servers, storage, databases, networking etc. over the internet(‘Cloud’). Cloud Computing helps financial firms to be more flexible and adaptive to changes in regulatory requirements. Through cloud based services, standardized utilities are established. These utilities perform various functions such as risk mitigation, compliance and reporting function including Know Your Costumer (KYC). Such utilities are managed by third parties and Financial Institutions are given access to these utilities. Such applications are updated quickly i.e. when a new regulation is introduced or when existing regulation is amended, if related to such utility then it is updated immediately.
  4. Artificial Intelligence- It is an area where intelligent machines are created. AI in Regtech is still a topic of discussion but this particular program can be used in various ways. Artificial Intelligence can be used in risk assessment, prevention of money laundering, to mitigate and solve risk and compliance issues. AI is actually very vast field and is still under development. Many software Companies are chasing AI and so are Regtech companies.