Regulatory technology (regtech) is a vital dimension to fintech. Regtech solutions are gaining mainstream popularity among financial institutions looking to redefine and streamline compliance processes across jurisdictions, lines of business, and client bases. The reason being, as regulations continue to evolve, non-compliance costs are hitting the roof. As the regulation industry underwent a much-anticipated tech makeover, regtech organizations rose with the promise of agility, speed and seamless integration to legacy systems, boasting increased efficiencies and reduced margins of error. The first wave of RegTech solutions that came to light concentrated on KYC, anti-money laundering, and fraud detection, all very much in line with retail and institutional banking. With the next wave, the asset management industry gained emphasis in the regtech space following the blanket rollout of Markets in Financial Instruments Directive II, which imposed a high level of trade and transaction reporting. In a bid to replace age-old processes, regtech organizations began leveraging natural language processing, artificial intelligence (AI), machine learning (ML), and smart contracts. Compliance, the most significant area of regtech, is where AI and ML can be leveraged to search for new or reviewed regulations, report, and share the impact of changes with the stakeholders. As not a single act would go unnoticed, installing compliance software would help avoid GDPR-imposed fines. Also, by continuously monitoring risks, regtech solutions learn to detect potentially rocky situations based on predefined data. Risk management software has been especially valuable for the fintech industry with its advanced analytical approach and big data analysis that help predict market changes and mitigate risks while aiding regulatory compliance.Regtech solutions are already a powerful force as the finance and regulatory industries seek more digital-centric and innovative ways of reducing costs. With the expectation of continued demands from regulators, there is no doubt that regtech will be essential for financial institutions focused on delivering a positive customer experience and seeking to simplify compliance.Please let us know your thoughts.Copyright © 2019 ValleyMedia, Inc. All rights reserved. Reproduction in whole or part of any text, photography or illustrations without written permission from the publisher is prohibited. The publisher assumes no responsibility for unsolicited manuscripts, photographs or illustrations. Views and opinions expressed in this publication are not necessarily those of the magazine and accordingly, no liability is assumed by the publisher thereof.Contact Us:phone:510.402.1463Fax:510-894-8405Email:sales@bankingciooutlook.comeditor@bankingciooutlook.commarketing@bankingciooutlook.com AUGUST - 05 - 2019, Volume 05 - 08 (ISSN 2644-2418) Published by ValleyMedia, Inc. To subscribe to Banking CIO OutlookVisit www.bankingciooutlook.com Editorial StaffSalesT:510.402.1464Nick Masonnick.mason@bankingciooutlook.comVisualizerJohn GothamIssac GeorgeManaging EditorJames RobertsonRoadmap for Compliance James RobertsonManaging Editor editor@bankingciooutlook.comCarolynn WaltersCalvin JamesKenneth ThomasEditorialJustin SmithJoseph MichaelRussell Thomas*Some of the Insights are based on the interviews with respective CIOs and CXOs to our editorial staff
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