Regtech 101: What It Is, Why Now, & Why It Matters

Regtech startups are saving firms billions in regulatory fines and displacing manual risk and compliance with cutting-edge technology. Over 143 million Americans will be at risk of financial fraud for years following the Equifax cybersecurity breach, while an estimated 3 million Wells Fargo customers unknowingly had their digital identity stolen to open fraudulent trading accounts. It's been nearly a decade since the financial crisis exposed how a weak risk management framework and lack of governance can almost permanently debilitate even one of the strongest capital markets. Yet despite a massive regulatory overhaul following the crisis, recent incidents show just how vulnerable the industry still is when it comes to hackers, fraud, and mismanagement. Looking at the top breaches since the financial crisis highlights some of the impacts that major gaps in regulation have on consumers.