RegTech is more than simply a compliance solution. RegTech operates in numerous financial and regulatory sectors.
And, as defined by US RegTech Leader David Choi: “RegTech isn’t just adding technology to existing processes. It can change the way you think about regulatory compliance. Once you understand its transformative potential, you may find ways to create a competitive advantage.”
What is RegTech?
The term "RegTech," also known as "regulatory technology," refers to the application of new technologies to assist financial institutions in strengthening regulatory governance, compliance, and risk management. RegTech is another group of technology firms using automation to address issues in the tech-driven economy.
According to a research report published by MarketsandMarkets, the global RegTech market size is expected to grow from USD 7.6 billion in 2021 to USD 19.5 billion by 2026, at a compound annual growth rate (CAGR) of 20.8% during the forecast period.
Understanding the concept of RegTech
Data breaches, scams, money laundering, and other fraudulent acts have all increased along with the growth of digital products. By increasing controls against fraud, money laundering, and insider trading, financial institutions are now turning to RegTech to increase efficiency and lower risk.
Machine learning, big data, blockchain, and other technologies are used by RegTech firms to digitise regulatory compliance and governance. RegTech technologies make efforts to continuously track online transactions to spot anomalies or consistency issues in the world of digital payments.The majority of RegTech firms leverage cloud computing to offer big data, machine learning, or risk prediction solutions that assist businesses, particularly in the financial sector, become more competitive, sustainable, and effective at satisfying regulatory standards. Employee monitoring, compliance data management, fraud prevention, audit tracking capabilities, and other initiatives are just a few of the projects that RegTech is automating.
Benefits of RegTech tools
It can be used to generate reports quicker.
It can be used to extract big data sets and use them for various purposes.
It provides better precision and comprehensiveness.
Understand the changing regulations and proper controls quickly.
Recognise factors to help avoid financial crimes.
Some RegTech firms include:
Trunomi in London, UK
ClauseMatch in London, UK
Tessian in London, UK
Quantexa in London, UK
NorthRow in Abingdon, UK
Voyance in Nigeria
AirSmat in Nigeria
Talo in Nigeria
Indicina Technologies in Nigeria
Chiniki Guard in Nigeria
RegTech, which presently dominates the financial industry, will likely play a larger role in other industries in the future since markets increasingly depend more heavily than ever on data. This is because the technology allows businesses to make decisions based on the real data that is supplied by the system.
In summary, regulatory procedures may be made better, more efficient, and automated with the use of regulatory technology solutions as there are many things to keep track of, from avoiding possible threats to spotting fraud while managing day-to-day business operations,
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