RegTech- The next Big Thing?
Technology is marrying with each and every area of life and work. Disruption is new normal in today’s time, we have been realising disruption in almost all the areas and technology is playing the key role. Regulatory compliance is one of the areas which has became headache for individuals and corporates. The compliance become difficult area after the financial crisis, which prompted the corporations to give significant attention as huge risk of financial penalties was involved.
RegTech is the new concept which will revolutionise the regulatory compliance by using cloud computing, big data, AI. The term ‘RegTech’ was first used by the FCA (Financial Conduct Authority), a regulatory body from the UK. The objective of RegTech is ensure that regulations are complied in a given frame of time with minimal resources. RegTech will significantly contribute in firms regulatory compliance and managing the related risks. It is a great solution for better corporate governance. Many organisations have been using technologies for automation, however the difference between the said technologies and RegTech is the responsiveness of RegTech i.e. Responsiveness of managing and responding the data and the power of interaction. RegTech will build a great ecosystem for regulatory compliance
In the age of data and compliance, RegTech could be a boon for corporates. RegTech is mix of various technologies and it is all about creating a new system which is totally outstanding in responsiveness. The automation of due diligence, using data that can be tailored to a firm’s risk-based approach, is at the forefront of this RegTech revolution. RegTech will certainly change the way we comply with the regulation whether it is KYC or any other compliance. In the disruptive times, RegTech will support the organisations to get stability and peace by using latest technologies and be assured of full compliance with minimal response. Further, the responsive nature of egTech will also help organisations to be more responsible towards corporate governance.