RegTech

RegTech, a portmanteau of "regulatory" and "technology," refers to the specialized field within the financial services industry that focuses on using technology to enhance regulatory compliance. This innovative sector aims to streamline, automate, and enhance the efficiency of compliance processes by leveraging cutting-edge technologies such as artificial intelligence, big data analytics, and blockchain.

Key aspects of RegTech include:

RegTech is considered a subset of FinTech, which encompasses a broader range of technology applications in financial services beyond compliance, including innovations in payment systems, investment, and lending services. The growth of RegTech has been fueled by the increasing complexity and volume of financial regulations, especially following significant financial crises and the consequent tightening of financial oversight. Institutions embracing RegTech find that these technologies not only ensure more robust compliance but also provide a competitive edge by enhancing overall operational efficiencies.