RegTech is holding the attention of traditional banking institutions to deal with the growing complexities of global regulatory compliance requirements. According to Bengaluru-based FinTech consultant Medici, it estimates the global demand for regulatory, compliance and governance software to reach USD 118.7 billion, by 2020.
By Kumar S
RegTech companies help clients to be compliant with stringent new rules with greater efficiency. Innovations around automation with the sector has expedited compliance processes for financial institutions, which essentially results in substantial cost-savings.
RegTech mine data received from banks and financial institutions, using automated tools like AI and predictive analytics to declutter intertwined data. Their ability to combine complex information from financial institutions with previous experiences, makes them stand out from other software solutions. This process helps financial institutions to prevent breaches of data law in the present and helps to predict potential future risk areas.
What differentiates RegTech solutions from the traditional financial technology solutions is their agility. While traditional solutions are robust and designed to cater to specific needs, they can be inflexible and require configuration or integration in a proprietary language.
By configuring data and generating reports at a breakneck speed, integrating data and using analytical tools to make sense of the humongous amount of data available, RegTech can interpret data for multiple solutions including; on-boarding, monitoring, detection, reporting and process control.
Governance.io, London-based Advanced Logic Analytics and New York-based RegTek Solutions are some of the pioneers in the financial technology sector, bagging the Lauxemberg FinTech of the year at the 2016 awards. Other top companies are Californian-based FixNix, Zurich-based IT firm Spitch, and London-headquartered VoxSmart, according to a report published by London-based FinTech publication– Consultancy.uk.
United Kingdom and the United States were leading the global RegTech market with nearly half of the top companies in this space followed by Ireland, Switzerland and Australia (21 companies to-date). Among emerging economies, Brazil, Bermuda, South Africa, Cyprus, India and the United Arab Emirates are also represented in the list.
The report by Consultancy.uk lists 100 RegTech companies in the market, which it rated according to their work in global financial markets and their ability to bring innovative solutions for the financial sector.
The report was published after meticulously screening 416 candidates from across the world. Innovative use of technology to generate efficiencies and performance enhancements across the compliance function within financial institutions, was one of the criteria for selecting the top 100 companies.
The publication had also looked at potential cost savings, efficiency improvement and/or revenue enhancements generated for clients, impact on the problem being solved and innovation of technology solution. Companies spend billions of dollars each year to attain these results...
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