The Year Of Regtech

                                                 The Year Of Regtech

What exactly is RegTech? Do you have any idea who it's for or what it entails? Regtech is a type of technology that is used to manage regulatory operations in the financial industry. Regtech's primary tasks include regulatory monitoring, reporting, and compliance.

Here's a complete look at the RegTech scene. We go over everything from basic definitions and background information to industry groups and a lot more.  So sit back, buckle up, and enjoy your RegTech introduction; it's time to share our ideas.

RegTech's History

Following the 2008 financial crisis, financial sector regulation increased. There was also an increase in the usage of disruptive technology in the banking sector. Technology advancements have resulted in a surge in fintech firms developing technology-driven products to improve the consumer experience and interaction with financial institutions.

The reliance on customer data to create digital products has prompted regulatory authorities to push for more vital rules governing data privacy usage and distribution. The combination of more regulatory measures and legislation with a more technologically dependent sector necessitated the development of regulatory technology.

3 RegTech Causes

There are two generally held interpretations of the RegTech revolution in the broader literature. In the first iteration, RegTech is only a result of the 2008 financial crisis and the regulatory tsunami it precipitated. In the second form, RegTech is just an extension of FinTech and the associated demand for digital regulatory processing.

We at Apiax do not believe that any of these explanations can adequately explain the phenomenon. Instead, the RegTech revolution is the consequence of a confluence of wide and powerful forces. 3 RegTech Causes are: 

1. The financial crisis
2. Digitisation and technological advancement
3. Competitive advantage

RegTech Characteristics

Regtech's key attributes include agility, speed, integration, and analytics. Through extract and transfer load methods, Regtech can efficiently separate and arrange congested and interwoven data sets. Regtech can also be used to generate reports fast. It can also be used for integration reasons to get solutions up and running quickly. Finally, regtech employs analytic methods to harvest large data sets for various objectives.

Main Technologies Supporting RegTech Solutions

It is critical to combine robust FinTech solutions with RegTech innovation for long-term financial products with regulatory process automation.

Financial institutions (FIs) are complicated legal entity structures with a wide range of business models, indicators, and risks. RegTech enables financial institutions to maintain internal control and accountability for risk data, compliance evaluation, analysis, and effective policy and procedure management. The following technologies are key to RegTech solutions:

1. Big data
2. Blockchain
3. Machine learning 
4. API
5. Cloud computing
6. Artificial intelligence

RegTech Companies

Some significant regtech firms and the tools they have developed include:

1. IdentityMind Global: Tracks payment organisations to provide anti-fraud and risk management services for digital transactions.
2. Trunomi: Securely manages client consent to utilise personal data.
3. Suade: Assists banks with submitting required regulatory reports while minimising interruption to their architecture.
4. Silverfinch: A fund data utility that connects asset managers and insurers to meet Solvency II criteria.
5. PassFort: Allows for the automated collecting and storing of customer due diligence data.
6. Fund Recs: Oversees how the fund sector manages and processes data.

Global World Report Compliance

The focus of our Compliance in a Global World study was on digitising cross-border knowledge. We set out to find out how a worldwide universal bank with a strong client base in Singapore is now tailoring its service and product offerings to clients in other markets. From a Singaporean perspective, this study will include information on project needs and objectives, obstacles and solutions, and outcomes and objectives.

Is 2022 Set To Be The "Year Of The RegTech"?

Executives in the industry predict that demand for regtech services will increase. This year, regulators may prioritise data quality improvement. Demand for regtech services skyrocketed in 2021, and there is still plenty of space for the business to expand. With increased regulatory requirements for financial service providers, industry services have grown more mainstream.

Furthermore, the benefits of regtechs such as deployment speed, cost savings, and streamlining of all compliance demands drove demand. This demand was further driven by industrial competitiveness for the application of the best technologies. Covid-19, the deployment of EMIR Refit, Brexit, the installation of leverage restrictions in the Australian CFD market, and the final phase of MAS reporting have all had an influence on the boom of regtech services.

Conclusion

While most modern dictionaries provide a definition, we find that the concept of RegTech encompasses much more than the intersection of regulation and technology. Its vast breadth and application are applicable to a variety of industries, business operations, and operational goals. Whatever your business goals are, one thing is certain: RegTech is here to stay and provides benefits critical to competing in the digital world.

RegTech, like technology, is expected to evolve in tandem with innovation, market actors, and business requirements. As a result, we encourage you to return to this page from time to time for an updated picture of the RegTech environment.

We hope that this RegTech Guide has provided you with a thorough knowledge of what RegTech entails. We haven't discussed much ourselves, though. And the fact that you've read this far suggests that you're intrigued.

Apiax is used by financial institutions all around the world to integrate compliance into their systems and operations. It assists them in overcoming regulatory difficulties, realising business opportunities, and lowering compliance costs.

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