Imagine if financial companies could collect every detail of the mistakes they’ve done in the past few years and use the information to come up with suggestions to do better next time. With this ability, many such firms would be able to fix areas of improvement easily and ensure that due diligence is maintained at all times.
This is the very essence of Regtech. It’s a combination of the words ‘regulatory’ and ‘technology’ and is a relatively new field that’s aimed at helping financial organizations analyze big data to predict risk areas they should focus on to ensure compliance with regulations.
Regtech solutions should provide a number of features that include handling real-time data in the proper context, integration with existing systems. They also should help users analyze trade-offs between risk and reward, and more.
Other interesting terms…