RegTech (regulatory technology) is a class of software applications for managing regulatory compliance. Companies invest in RegTech as a way to save time and money, allowing resources that were once devoted to regulatory compliance to be diverted elsewhere, once RegTech takes over those functionalities.
RegTech tends to be cloud-based and with that comes the following advantages, according to a 2016 Deloitte report, “RegTech is the new FinTech.”
- Performance / Scalability
- Agility – "Cluttered and intertwined data sets can be de-coupled and organized through ETL (Extract,Transfer Load) technologies."
- Speed – "Reports can be configured and generated quickly."
- Integration – "Short timeframes to get solution up and running."
- Analytics – "RegTech uses analytic tools to intelligently mine existing “big data” data sets and unlock their true potential e.g. using the same data for multiple purposes."
Some examples of companies that are developing RegTech to simplify regulatory operations include:
- Quarule – Uses risk controls and compliance certification technology to help clients coordinate governance, automating oversight, retaining and reusing knowledge.
- Trulioo – Uses online electronic identity verification technology to provide more than 4 billion people worldwide with ID verification.
- Vizor – Financial supervision software that helps financial regulators simplify and strengthen financial regulation systems.