RegTech Demystified

RegTech, commonly known as regulatory technology, comprises of all technologies designed to assist companies within the financial industry to comply with regulations. Many of the RegTech solutions primarily focus on anti-money laundering (AML) and know your customer (KYC) regulations. These solutions are designed with high precision levels offered by machine learning technology and artificial intelligence (AI). RegTech solutions cover various functions that include fraud prevention, regulatory change discovery applications, risk management, and KYC. Regulatory changes have increased in volume by almost 500% since the global financial crisis of 2008-09. That could be the reason why the commercial service companies opted to increase the number of their compliance staff and invest more money in their compliance fund.