A term firstly mentioned in 2015 by the UK’s Financial Conduct Authority (FCA), RegTech is a buzzword that stands for Regulatory Technology.
“A subset of fintech that focuses on technologies that may facilitate the delivery of regulatory requirements more efficiently and effectively than existing capabilities.” – FCA
This idea however, firstly appeared in the 1990s when financial institutions started implementing new technologies to track, monitor and analyse risks related to specific regulations and procedures. What we describe as RegTech nowadays, started shaping by early 2010s due to the uncertainty the financial crisis brought to the global markets generating the need to find more effective and efficient ways for business to comply. The common attributes of the early RegTech solutions were focusing around KYC (know your customer) by improving the protection of clients and firms alike.
As of now, Regulatory Technology solutions consist of breakthrough technologies enabling businesses to automate risk monitoring and management, offering seamless onboarding, and reduce the time and cost of compliance operations. Those cutting-edge tools already helped numerous firms in achieving operational excellence.
But this relatively new industry is yet to show its real potential. Entering the new decade, firms involved in the sector started shifting their solutions from being “know your customer” centric to “know your data” focused. According to Grand View Research, Inc., the global RegTech market is expected to grow at a CAGR of 52.8%, reaching $55.28 billion by 2025.
With the likes of state-of-the-art technologies like cloud computing, machine learning and big data analytics, RegTech is evolving to the ultimate financial crime fighting tool, a software that in its core detects fraud, money laundering and, human and drugs trafficking accurately and in near real time trend.
Our regulatory technology solution called RegTek is part of this compliance revolution. The unique software developed by iSPIRAL, a leading RegTech provider, supplies corporations with the finest modules such as AML Risk Assessment, Transaction Monitoring & Screening, Digital Identity Verification & Screening (iKYC) to create the ideal onboarding, KYC & AML experience.