Regulatory technology, or “RegTech,” is a growing field focused on the use of new technologies to improve the regulatory process.
Fostered by the increasing use of technology in financial services and other regulated industries to achieve a competitive advantage, regulatory agencies, private firms, and other institutions are now using RegTech to streamline the compliance monitoring process. As the body of financial rules and regulations grows and becomes more complex, many banking firms are partnering with RegTech organizations to reduce costs, streamline complex workflows and boost efficiency.
Many RegTech products are designed to automate complex compliance tasks, saving valuable time and money, and allowing compliance professionals to use their time more strategically. Sophisticated compliance systems can also achieve more reliable and accurate results than traditional manual monitoring and compliance processes, which are all too often subject to the failures of human error. There are several ways that banks and other financial institutions can benefit from building RegTech into their compliance and monitoring systems, and the inherent benefits of deploying this diverse and innovative field of technology are drawing more and more firms to partnerships with RegTech companies.