Regtech
A portmanteau of the words ‘regulation’ and ‘technology’, referring to a combination of these two fields.
‘Regtech’ can be defined as the use of innovative technology to address regulatory challenges in the financial sector. Increasing levels of regulation have been imposed on the financial sector since the late 2000s financial crisis, with a concurrent rise in the disruptive use of technology.
What factors have led to the rise of regtech?
While the actual term ‘regtech’ is quite a recent one, there has long been a need to combine technology with regulation to tackle regulatory issues. However, regtech has been brought to greater prominence in recent years by ever-increasing regulation and a heightened focus on data and reporting.Practical Application Example
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Examples of regtech include the secure management of the consent to use customer personal data, the automation of the collection and storage of customer due diligence data, and assistance for banks to submit required regulatory reports without their architecture being disrupted. ”
