{"id":3236,"date":"2016-06-17T11:02:10","date_gmt":"2016-06-17T11:02:10","guid":{"rendered":"http:\/\/blog.privateinvestmentsnetwork.com\/?p=547"},"modified":"2021-02-26T12:22:41","modified_gmt":"2021-02-26T12:22:41","slug":"what-is-regtech","status":"publish","type":"post","link":"https:\/\/medysif.com\/en\/what-is-regtech\/","title":{"rendered":"What is RegTech?"},"content":{"rendered":"

RegTech<\/strong> is a new concept derived from the definition of FinTech<\/strong> primarily signifying the technology applied to resolve issues regarding regulation within the financial industry. It helps companies to better manage and understand their legal risks as well to easily adhere to their regulatory obligations.<\/p>\n

This is due to today\u2019s new technologies giving rise to new regulatory necessities and the market\u2019s legal framework often being slow in adapting to and accompanying the speed of these changes within the environment. After a disruption of the market, through new FinTech solutions arising, RegTech helps to adapt the regulatory, financial services and general professional services sectors to these changes.<\/p>\n

Adapting to the speed of these changes is key for companies and the governments of any nation, guaranteeing that all those involved will benefit from the arising innovations within the financial industry. In this sense, the technology acts as an important frame of support to expedite, integrate, and automate this process of adaptation to regulations and even to create and audit, therefore offering security and reliability for these governments and companies involved.<\/p><\/blockquote>\n

The consulting company, Deloitte, announced<\/a> in a report released in January this year that RegTech could already be considered the new FinTech, referring to companies that offer technology for the financial sector, a concept which is currently trending.<\/p>\n

This roots to their belief that that there is a hole that is not being completely considered in the innovations and trends of the financial sector, simply described as the norms and regulations in place.<\/p>\n

\"regtech\"<\/a>
\nSimilarly, an article released this March by RegTechFS<\/a> discusses how regulators were often left out of the conversation of technological advancements, as they were not previously involved in how<\/em> business is conducted. Filling this hole not only provides regulatory systems an opportunity to progress, but also allows other industries to move further along, not being held back by regulatory challenges.<\/p>\n

According to the Deloitte report, \u201cin the short term, RegTech will help companies to automate prevalent tasks of compliance and to reduce the operational risks associated with compliance and reporting obligations\u201d.<\/p><\/blockquote>\n

Applying technology to issues of regulation is not particularly new, however some of the characteristics that bring and differentiate the concept of RegTech specifically are agility, velocity, integration and the possibility of analysis. According to the Deloitte report, RegTech \u201cprovides executives a higher level of opportunity to introduce new capacities that are designed to take advantage of the systems for the obtaining of normative data and the presentation of reports in a profitable, flexible, and timely manner, without running risks of replacing the existing legal systems\u201d.<\/p>\n

Examples of companies (according to Deloitte) that already can be considered to be within the RegTech sector include:<\/p>\n