Using RegTech as a Cross-Industry Digitization Tool
By Peter Lancos1 and Sonal Rattan2
1Co-Founder and CEO, Exate Technology
2Co-Founder and CTO, Exate Technology
RegTech has traditionally been defined as a subset of FinTech. This is primarily as a result of the abundance of regulation that has been applied to the finance, and specifically the banking, sector. Given the advent of new privacy-based regulations such as the EU General Data Protection Regulation (GDPR), the EU e-Privacy Directive (to become a regulation), and the Privacy Shield in the United States (which is being reviewed by the Trump administration), the scope of RegTech has been expanded to include all industries that process personally identifiable information (PII). Examples of industries that process large quantities of PII include the recruitment Industry, third-party service providers (such as software as a service [SaaS] providers), and the automotive industry. Whereas the financial Industry has extensive experience in dealing with regulatory change (Markets in Financial Instruments Directive [MiFID], Dodd-Frank Act, Volcker Rule, Market Abuse Regulation [MAR], second Markets in Financial Instruments Directive [MiFID II], and so on), other industries have not previously been subject to these requirements. The requirement to digitize in the finance industry in order to deal with regulatory change, customer expectations, and an evolving technology landscape may need to be applied to other industries as they ...