By Jay Patani
1Business Insights Lead, CompareAsiaGroup and former Technical Evangelist, ITRS Group
Compliance rarely evokes passion or enthusiasm in companies. It is seen more often as a necessary burden than an opportunity, an extra cost rather than a future revenue generator. However, a new breed of companies is changing this image. Welcome to the world of RegTech.
RegTech is a moniker that has been doing the rounds in recent years. Although there has long been technology that tackles regulatory challenges, the RegTech phenomenon signals a leap in applying bleeding-edge technologies to the issues of regulation. While the status quo so far among banks has been to begrudgingly cope with (and occasionally breach) regulatory requirements, RegTech brings financial institutions one step closer to automation. It is proactive instead of reactive; predictive (or prescriptive) instead of descriptive.
Since the 2008 financial crisis, regulators have worked tirelessly to write new legislation that curbs risky activity among market participants. The precrisis laissez-faire attitude has given way to greater scrutiny and an ever-growing complex web of rules that vary across different jurisdictions. Meanwhile, in the big data world, academics and practitioners have made significant strides towards developing and applying the latest big data techniques in industry.
The confluence of these two phenomena has led to the emergence ...