“RegTech” is short for “regulatory technology”. It refers to those programmes designed to assist in regulatory monitoring, compliance and reporting. RegTech is not any single business, but instead refers to a community of technology companies that address the challenges posed by various aspects of the digital economy.
Summary
- RegTech refers to companies engaged in the management of regulatory processes within the finance industry through the use of technology.
- Its primary functions include regulatory monitoring, compliance and reporting.
- RegTech comprises various tech companies whose aim is to help businesses comply with financial regulations in a cost-effective manner.
RegTech today
The global economy has become an unfathomable web of electronic transactions occurring at the speed of light 24/7/365. This presents challenges for businesses with a stake in the digital economy who need to make sure they comply with existing financial regulations. Enter RegTech.
RegTech companies offer a variety of high-tech products and services designed to reduce data breaches, fend off cyber attacks and prevent money laundering, while also ensuring clients meet their reporting obligations.
RegTech companies leverage a combination of machine-learning, big data and AI to monitor electronic transactions, identify potential issues and reduce the risk that a business will fall out of compliance with key government regulations.
The RegTech company monitors all electronic transactions in real-time. Should something raise a red flag the appropriate business or financial institution is alerted so that they can determine if fraudulent activity is indeed taking place. By identifying such issues early on the business or institution is able to ensure they do not mushroom into existential threats.
RegTech: the future
RegTech has grown from a £10 billion industry in 2017 to approximately £70 billion in 2022, and there is no indication that this spectacular growth is slowing down any time soon. As cybercriminals become ever more sophisticated it is imperative that the RegTech sector stay one step ahead. It’s a given they will do that by relying on ever-greater amounts of automation informed by quantum advances in AI and machine learning.
Contact FinregE
Our only goal is to ensure our clients are able to identify and eliminate threats in a timely fashion so that they can stay in full compliance with applicable financial rules and regulations. Don’t let sophisticated cybercriminals undermine your business or institution. Get in touch with FinregE today by calling +442045370860, or email info@finreg-e.com. We put the power of technology to work for you.
