Fintech spawns regtech to automate compliance with regulations Regulation and compliance Bloomberg for Enterprise

This article was written by Gregory Roberts for Bloomberg BNA. Entrepreneurs and innovators are invading the complex and often arcane world of regulatory compliance with some of the same technologies that have disrupted the core operations of the financial services industry. Machine learning, biometrics and the interpretation of social media and other unstructured data show promise as potential compliance tools for regulatory obligations that have mushroomed in the aftermath of the financial crisis, along with the investment and costs associated with them. Regtech is "the use of new technologies to solve regulatory and compliance requirements more effectively and efficiently," as the Institute for International Finance (IIF), a research-oriented trade association in Washington, put it in a March report. "I would define it as technological advancement that assists those focused on compliance and regulatory-related activities in their professions," Kari Larsen, counsel at Reed Smith LLP in New York, and formerly in the Enforcement Division of the Commodity Futures Trading Commission, told Bloomberg BNA.