As ‘new FinTech’ is gaining momentum, registration of fintech companies is gradually becoming a thing of the past. Once known only to the few initiates, RegTech today is one of the most sought after technologies. But what is Regulatory Technology (RegTech) and why is it on everybody's lips today?
In layman’s terms, RegTech is a technology that simplifies regulatory compliance. Or, putting it differently, it is a technology that aims to provide more flexible, faster, integrable, reliable & cost-effective regulatory measures.
Is RegTech the new FinTech?
The fusion of regulation & technology isn’t something entirely new. But, given the fact that increasingly more attention is being paid to regulation & reporting, RegTech is also gaining importance. Regulatory technology has the potential of filling all the gaps in the financial services market which is prone to disruption due to the rapid growth of FinTech technology.
Such failures in the financial services market will make RegTech more likely to receive data, use information in real time & make use of various algorithms & analytics.
London is increasingly being seen as the home of RegTech, a place where the world's leading RegTechs developers are based. The FCA, the world’s number one financial regulator, has recently come up with a proposal in which it identified areas where RegTech could make a major difference.
It is expected that RegTech will help create new approaches to AML verification procedures & come up with new anti-fraud measures.
Automating due diligence is one of the most important aspects of the RegTech revolution. Thus, you can say goodbye to regular violations of regulatory rules due to the use of outdated artificial intelligence.
IQ Decision UK is keeping its finger on the pulse of digital change. For more information about RegTech, please contact our legal experts who can also advise you on the pros and cons of registering a fintech company.