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RegTech Demystified

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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.


How European Banks Are Using RegTech Solutions

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Large US and European banks are spending $20 billion a year on technology to help them comply with newly evolving regulations such as MiFID and PSD2. With regulatory environments becoming increasingly complex, 300 million pages of regulatory documents will be published by 2020 & 600 legislative initiatives need to be cataloged by a medium-sized, sell-side institution to have a holistic view of their rulebook – the silos of data generated by various business functions lead to significant resource expenditures on data collection, organization, and analysis. Moreover, between 2008 and 2016, there has been a 500% increase in regulatory changes in developed markets, which has led to 10-15% of the total workforce of FIs working under compliance functions. Meanwhile, an end-to-end RegTech implementation promises 634% in ROI realizable over a three-year period, which is why a range of financial institutions in Europe are actively exploring partnership opportunities with startups across the use cases we will be reviewing further. "The RegTech adoption strategy differs across various tiers of financial institutions.


MEDICI Top RegTech Players Leveraging AI for Product Offerings

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Globally, banks have 10–15% of their staff dedicated to compliance on average. According to a study cited in the Cost of Compliance 2018 Report, on average, regulatory divergence (costs, risks, impacts) costs financial institutions 5–10% of their annual turnover. This consumes senior management's time, as well as capital that could otherwise be focused on identifying emerging risks in the financial system. Ultimately, these costs are a barrier to international growth – the findings conservatively infer more than $780 billion annually in costs to the global economy. These challenges have given rise to a new kind of player – Regulatory Technology (RegTech) startups.


What on Earth is RegTech Why is it the Next Big Thing in Banking

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For reasons as mundane as the lack of a credit history, or being a new migrant without the right papers, a third of the world's population is excluded from our economic system. That not only leaves them without financial security, but without access to the job market or the ability to rent a home. Recently, that tide has started to turn. And with the rise of RegTech, it's about to turn further still. Since the financial crash of 2008, financial services have faced a mountain of regulation.


12 UK Fintech Companies Powered by Artificial Intelligence

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The UK fintech market is experiencing a new wave of innovation. Developments in artificial intelligence and machine learning are giving rise to a new generation of fintech startups. Prop trading houses and hedge funds have been using machine learning techniques for years to beat financial markets. It's interesting to see A.I. making its way into mainstream fintech. Companies are leveraging the technology to make sense of large volumes of data, making financial products and services more accessible for the end user.