RegTech is a global market that has come a long way since its inception despite being a fairly new concept. Vital role in the exponential growth and development of this sector comes from the technologies used. Regulatory technologies definitely live up to their name and incorporate the latest pieces of tech advancements aiming to serve the most effective and efficient experiences for both firms and consumers.
According to The Global RegTech IndustryBenchmark Report by the Center of Alternative Finance (University of Cambridge), as of 2019, 66% of vendors involved in the industry currently employ cloud computing and another 1% consider employing it, making it the most favourable technology among them. The second technology of choice among RegTech corporations is machine learning, with 56% already offering it in their solutions and another 16% considering using it in the near future, making it the fastest growing technologic feature of preference in the sector that will eventually become the most integratable in such software.
So, what is machine learning and why is it so important and popular in the regulatory technology world?
It all comes down to how fast government regulations change and the fact that it is very difficult for companies to cooperate with. Machine learning is a technology that augments compliance practices. Using such automations, vendors strive to serve the most explicit and to-the-point solutions. Machine learning enables faster data gathering and analysis from multiple sources and runs several tasks on autopilot, saving precious time for compliance officers to focus on the more qualitative aspects of handling risk and keeps them updated on the latest regulatory changes in multi-jurisdiction level.
Regtech solutions featuring AI excel in reducing nonconformity risk as the human factor is eliminated from data gathering and sorting tasks, eliminating unforeseen gaps or unexpected occurrences in compliance processes that become evident when handling at scale. They also improve process efficiency by detecting only high quality alerts and risk-ranking them from lowest to highest, speeding up the investigation and transaction flow.
Are regtech solutions going to replace humans in the Compliance sector?
This compliance revolution is a marriage between humans and technology. Machine learning comes to complement the work of Compliance professionals supplying them with impeccable tools that ensure a faster, of higher quality and more accurate handling of risk. In more depth, enhanced regtech solutions provide deeper fraud prevention measures, faster document review and greater contextual insight.
One such solution featuring what was described above is RegTek, the latest addition to our solutions. Our cutting-edge software comes with machine learning implementation to its various modules, supported by BI analytics and global multi-jurisdiction databases, ensuring the ultimate technological processing of compliance tasks.