What is RegTech?
It refers to any technology that ensures companies comply with their regulatory requirements. An increasingly complex regulatory environment has led to an increase in compliance costs. Regulators have also issued heavy fines for non-compliance
Regulatory technology, popularly known as RegTech, is currently a buzzword in the global financial and compliance community. RegTech uses many cutting-edge technologies such as artificial intelligence, big data, cloud computing, machine learning, to name a few, which ensure companies are more effective in reaching regulatory compliance. RegTech has helped to minimize the risk of human error by automating the processes.
Regtech is a community of tech companies that solve challenges arising from a technology-driven economy through automation.
Is RegTech and FinTech same?
RegTech is believed to be exclusively the consequence of the financial crisis of 2008 and the regulatory tsunami it caused. In another version, RegTech is only an add-on to FinTech and the associated demand for the digital processing of regulations. As Forbes writes in an article, the FinTech revolution has produced numerous innovations that have led to strong demand for RegTech solutions. Many FinTech innovations require the enhanced personalization in payment integration of digital regulations into their solutions to enable them to work efficiently.
Read below about both, RegTech and FinTech:
Fintech and Regtech in a nutshell:
Regulatory and technological developments are changing the nature of financial markets, Click here.
Regtech vs Fintech:
the point does regulation intersect with disruption and can Technology help in addressing these expected and unexpected changes? Click here.
Regulation is one of several services that have recently been given the ‘tech’ affix. While the definition of RegTech means different things to different people, RegTech has certainly received a lot of attention with increasing regulatory complexity and rising regulatory costs.
Be it the boom in the start-up ecosystem or push from the government to go digital or the increasing presence of international IT companies, all of this has led to the rising need for RegTech worldwide. RegTech or Regulatory Technology refers to the digitally enabled management of filings, compliances as well as monitoring of policies. While there have been speculations around the world about RegTech being the new Fintech, the truth lies in the fact that the growth of the latter just brings about the need for the former.
Know about some of the RegTech Start-ups:
5 Top Regtech start-ups impacting the financial industry:
Depending on your specific needs, your top picks might look entirely different, Click here.
Top 10 Regtech start-ups in Europe:
To keep up with this rapidly growing community, we look today at ten of Europe’s most successful regtech startups. Click here
We, at OpenGrowth, are constantly looking for trending start-ups in the ecosystem. If you want to know any further information about the startup ecosystem or finTech, then do let us know in the comment section below.
Contributor: Amrita Sinha
Amrita is in the field of media. She has a deep inclination towards writing and public speaking. She has the aim of removing the stereotypical mindset of society. She loves to read and photography is her passion.