RegTech

 RegTech

FinTech's regulatory extension is known as RegTech. 

FinTech and RegTech both help banks engage with clients by assisting them in satisfying regulatory requirements. RegTech utilises multiple technologies, including machine learning and artificial intelligence, to establish enterprise-wide data governance and reporting. The goal of these new technologies is to displace the manual reporting and analytical processes now in use.

RegTech assists organisations in managing their internal credit and marketing requirements, much as FinTech. FinTech, in contrast, assists them in adhering to the regulatory criteria set out by the government and imposed by many organisations, including The Federal Reserve Bank.

RegTech transform the regulation scenario in India

The Indian market is now booming, and investments and acquisitions are increasing constantly. In terms of monetary loss, reputational harm, and other issues, however, failing to comply might have extremely serious implications. Because of this, it is essential for companies of all sizes to deploy regulatory technologies in order to gain the ability to influence legislation, as well as to better manage risk and overall operations. Compliance and fraud prevention should be the main priorities for the first RegTech investments and implementations.

Current Scenario

RegTech is a result of regulatory watchdogs throughout the world being concerned about the surge in financial crime. Businesses in the digital era are adopting innovative technologies to successfully comply with the changing regulatory landscape. Regtech increases compliance processes' quality while also lowering friction and the risk of failures by making procedures more robust and reducing costs.

Opportunities and Challenges in Global Scenario

Different opportunities for the RegTech industry are emerging due to the increased demand for digital financial services and the growth in criminal activities. The industry may employ big data, cloud computing, and machine learning algorithms in particular to support highly regulated enterprises as well as regulatory bodies through a set of computerised risk management procedures, regulatory reporting solutions, and the process of internal compliance regulations.

Big financial institutions' own solutions that they build and integrate, however, can leverage this potential. Rising potential, on the other hand, come with risks and challenges.