December 16, 2015
What is RegTech?
A relatively new term, RegTech refers to a set of companies and solutions that address regulatory challenges across industries, including financial services, through innovative technology. RegTech solutions are agile by nature due to the complexity and momentum of regulatory transitions. Traditionally, the technology was developed to be robust. However, RegTech can’t afford the luxury to deliver a solution for static requirements—it has to be a self-learning machine.
Another hallmark of RegTech is that it is usually cloud-based, which enables solutions to maintain, manage and backup data remotely, having it secured at the same time. Since RegTech utilizes the cloud, it significantly cuts the costs both for providers and clients. Agility leads to great flexibility and speed, which ensures a high level of control over information. Needless to say, modern cloud-based solutions and regulatory requirements set high expectations from tech companies with regard to security. Data encryption powers the safety of deployed solutions. Speaking of deployment, RegTech technology reduces the implementation time, enabling businesses to remove the pain of complex regulatory compliance and focus on business goals.