What is Regtech?

Regulatory Technology, or RegTech, describes the use of technology to help businesses and financial institutions comply with regulatory requirements efficiently and cost-effectively. It's a subcategory of FinTech (Financial Technology) that specifically focuses on regulatory and compliance issues.

Automation:

This central feature of RegTech solutions often involve the automation of compliance processes. This can include the use of artificial intelligence (AI), machine learning, big data analytics, and other advanced technologies to monitor, analyse, and report on regulatory compliance in real-time.  Automation of RegTech.  

Risk Management:

RegTech tools can assist in identifying and mitigating risks associated with non-compliance. It helps organisations assess and manage compliance-related risks more effectively.

Monitoring:

RegTech solutions assist in generating and maintaining the required documentation and reports to demonstrate compliance to regulatory bodies. This is particularly important in heavily regulated industries such as finance and healthcare, where organisations such as the CQC, and FCA monitor and investigate breaches of regulatory regimes.

Efficiency:

By automating compliance processes and streamlining regulatory reporting, RegTech can help organisations reduce the costs associated with compliance, including staffing and administrative expenses.

Customer Services:

RegTech tools are commonly used in the financial sector to streamline customer onboarding processes, verify client identities, a process known as KYC, or Know Your Customer. They are also used in AML (Anti-Money Laundering) for transaction monitoring, and risk assessments.

Data Security and Privacy:

Given the sensitive nature of regulatory data, RegTech solutions often incorporate strong data security and privacy measures to ensure that data is protected from breaches and unauthorised access.

Regulatory Intelligence:

RegTech companies may offer services that provide regulatory updates and insights, helping businesses stay informed about changes in regulations that could impact their operations.

The aim of RegTech is to make compliance more efficient and effective, ultimately benefiting both businesses and regulatory authorities by ensuring better adherence to rules and standards. In the face of advances in AI, as well as increasingly volatile economic conditions regulatory regimes are constantly evolving. Policy Central is a key tool for maintaining the integrity of your information management. It provides a single source of truth for your employees, one place where the information that ensures compliance is held and managed. It offers a clear audit trail for leadership teams and regulators that demonstrates compliance. Policy Central’s unique combination of features allow you to create, publish, monitor compliance, and promote core understanding across all departments and throughout your supply chain. To request a free "use case" review today please get in touch or call 0845 2968 410.