April 1, 2016
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.
In general, regulatory documents are 100-plus pages long which are not clearly legible. Furthermore, references to multiple documents including previous versions of legislations make them difficult to comprehend. The London-based HDFC bank spent $2.2 billion on regulation and compliance in the first nine months of 2015, up 33% year on year. It is worth noting that this is just the spending on being compliant, let alone the large fines paid by financial institutions for being non-compliant.
Post recession, banks in the US alone have shelled out more than $160 ...