How can Reg Tech Protect the Transformation Brought on by Technology

How can Reg Tech Protect the Transformation Brought on by Technology

How can Reg Tech Protect the Transformation Brought on by Technology

How can Reg Tech Protect the Transformation Brought on by Technology
The Fin-tech sector has seen immense progress over the past few years. It has managed to disrupt the financial services industry and enabled them to improve their services for their customers.

Fin-tech is has made the access to financial services including paying their bills through their smartphones, funds transfer both nationally and internationally and even enabling them to open bank accounts remotely. The increased regulatory requirements have also given rise to technological solutions to make the implementation of Anti Money Laundering or AML compliance easier for financial institutions. A further division of the Fin-tech sector, i.e. Regulatory Tech or Reg-tech has contributed significantly towards the transformation of the financial sector and Fin-tech itself.

As Fin-tech has brought on about exemplary changes from a consumer standpoint, but the advancements it has enabled for the financial services industry itself has been remarkable. Coming up with highly innovative solutions the sector has also been able to address issues the issues of cyber-crime, data protection and privacy.

Improved Regulation in Fin-tech

The Fin-tech industry has seen a low number of regulations until now. However, the increasing progression in technology has to take into account the users’ right to privacy and protection. Authorities realise that emerging tech solutions pose risks to customers. This is also one of the reasons why financial institutes have been previously reluctant about adopting tech solutions in their frameworks.

Fin-tech startups, on the other hand, have limited resources as they are potentially startups. They are ill-equipped to handle an immense number of regulations imposed by global regulators. Consequently, there is an increased need for Fin-tech companies to come up with measures to improve their regulatory obligations. They need to find a way to bridge the gap between transformation and regulations.

Reg-tech Solutions

As Fin-tech companies are being regulated increasingly, it is important for them to have a sound compliance and regulatory structure. Regulatory technology can play a vital role in developing proper and effective compliance solutions.

As the financial sector has come around to adopting modern technology for the implementation of compliance regulations, the Reg-tech sector has made significant advancements. With faster methods for suspicious activity reporting (SAR), banks are now able to detect fraudulent activities instantly. Methods like fraud detection, identity verification, AML screening checks and data protection have allowed banks to exercise AML/KYC compliance in a better way.

Additionally, Reg-tech solutions have also managed to reduce the costs of compliance for the financial sector. It is estimated that nearly 80% of the cost of a single transaction comprises of the cost of compliance. As global regulators move to make regulations more stringent, it is important for the Fintech industry to adopt RegTech solutions. Thus, if realized properly, the potential for companies to improve their compliance solutions can be immense. Reg-tech can play an important role in safeguarding the future of the Fintech transformation for the financial services sector, thus streamlining their processes and reducing their overall costs for compliance.

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How can Reg Tech Protect the Transformation Brought on by Technology

How can Reg Tech Protect the Transformation Brought on by Technology

How can Reg Tech Protect the Transformation Brought on by Technology

How can Reg Tech Protect the Transformation Brought on by Technology

How can Reg Tech Protect the Transformation Brought on by Technology
How can Reg Tech Protect the Transformation Brought on by Technology

How can Reg Tech Protect the Transformation Brought on by Technology

How can Reg Tech Protect the Transformation Brought on by Technology
How can Reg Tech Protect the Transformation Brought on by Technology
How can Reg Tech Protect the Transformation Brought on by Technology

How can Reg Tech Protect the Transformation
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Just a normal guy who listen to lots of music, but apart from that I love Tech!