Regtech Has Be­come a Cru­cial Pil­lar of Fi­nan­cial Tech­nol­ogy

National Post (Latest Edition) - - FINANCIAL TECHNOLOGY - Ted Krit­so­nis Read more from RegTech on in­dus­tryand­busi­

The fi­nan­cial sec­tor ad­heres to strict reg­u­la­tions, in­clud­ing the Fin­Tech com­pa­nies chang­ing the world of fi­nance, but the tech­nol­ogy han­dling reg­u­la­tory com­pli­ance is also adapt­ing.

Bet­ter known as RegTech, reg­u­la­tion tech­nol­ogy is emerg­ing as a means to han­dle the data and se­cu­rity that make deal­ing with fi­nances so sen­si­tive in the dig­i­tal era. Or­ga­niz­ing data through an­a­lyt­ics with iden­ti­fi­ca­tion and author­ity is im­por­tant for any fi­nan­cial en­tity, and Fin­Tech com­pa­nies are no ex­cep­tion.

By man­ag­ing more and more data, Fin­Tech com­pa­nies re­quire tools to en­sure com­pli­ance with greater agility and cred­i­bil­ity. As they evolve their own tech­nolo­gies, RegTech has done the same, forg­ing an un­likely sit­u­a­tion where var­i­ous sides of the equa­tion are work­ing closer to­gether.

“RegTech brings to­gether un­likely part­ners — banks, regulators, and tech­nol­ogy firms — to cre­ate solutions that will ben­e­fit the fi­nan­cial ser­vices in­dus­try as a whole,” says Jon Jones, pres­i­dent at Trulioo. “It’s only through col­lab­o­ra­tion that fi­nan­cial in­sti­tu­tions can achieve re­li­able, cost- ef­fec­tive com­pli­ance while regulators can en­sure that reg­u­la­tory con­trol is be­ing man­aged ef­fec­tively.”

This does mark a sig­nif­i­cant shift for all in­volved, be­cause legacy sys­tems have long man­aged com­pli­ance from a dis­tance. RegTech can have a more im­me­di­ate im­pact, with ba­sic tasks that re­duce op­er­a­tional risks in meet­ing com­pli­ance and re­port­ing obli­ga­tions.

It could also help Fin­Tech re­ori­ent more re­sources and fo­cus on se­cu­rity and risk mit­i­ga­tion, which is crit­i­cal when iden­ti­fi­ca­tion and author­ity need to be pro­tected from be­ing com­pro­mised.

“RegTech of­fers an op­por­tu­nity to re­pur­pose com­pli­ance teams, of­fer­ing the op­por­tu­nity to au­to­mate typ­i­cally mun­dane but bur­den­some tasks and al­low­ing them in­stead to es­tab­lish a re­newed fo­cus on risk mit­i­ga­tion,” he says. “The goal is to con­tinue to re­move hur­dles that would hin­der Fin­Tech’s con­tri­bu­tion to cre­at­ing an en­hanced, fair, and re­silient fi­nan­cial sys­tem — from this per­spec­tive RegTech is an in­no­va­tion en­abler.”

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.