RegTech – Gaining momentum

Technology has transformed the financial services industry. The use of automated investment advisory services, algorithmic trading, and online banking has allowed regulated entities to offer new products and services, boost operational effectiveness, and enhance customer experience. At the same time, the regulatory environment in which regulated entities operate has grown more challenging and complex.

Regulatory Technology (RegTech) refers to the collection of technological tools that support risk management and regulatory compliance. RegTech is industry agnostic, and regulated entities in the financial services sector predominantly use these solutions. RegTech solutions enhance the ability of regulated entities to operate efficiently and adhere to regulatory requirements. Technological advancements are creating significant opportunities to implement RegTech solutions spanning several application areas, including capital management, cybersecurity, risk management, operations, and regulatory reporting, amongst others. 

How does RegTech support businesses?

The primary purpose of implementing RegTech solutions is to reduce the costs of non-compliance with regulatory requirements, improve efficiency in the effectiveness of processes, and increase confidence in the accuracy of reporting.