3 Disruptive RegTech Trends- You Need to Know About

Regulations have to keep up with the new technology, financial crime, and industry-based risks. This poses a challenge for businesses complying with stringent regulatory laws. According to International Banker, global compliance spending by banks reaches more than $270 billion a year. To meet new regulations and legislation compliance requirements are put in place. To mitigate risks of cybersecurity and protect the privacy of consumers businesses need to comply with these regulations.

AI-powered automated compliance of RegTech minimizes risks of money laundering and other scams while enabling more granular checks for KYC and AML. For any business it is important to prevent unauthorized access, minimize cyber risks and control the possible consequences of a data breach as such systems have sensitive personal data stored as it a critical component of regulatory technologies. Financial institutes and other businesses are thus keen to employ customized RegTech solutions for their risk assessment, customer, and business activities. Businesses need to be aware of RegTech trends which are disrupting to stay a step ahead in compliance programs. In this article, we have enlisted some top RegTech trends which businesses should know about.

3 Top RegTech Trends:

Following is the list of top RegTech trends:

Cloud Becoming Core in Regulatory Compliance:

The usage of cloud technology by RegTech is picking up the speed. As RegTech gets a strong foothold within the compliance landscape, the cloud-based services are taking shape. The transition of compliance operations is happening more seamlessly breaking the barriers to adoption. For example, customized solutions for compliance-as-a-service, data sharing, or compliance for customer onboarding and new business relationships like KYC and KYB.

GDPR is verily the core requirement for businesses operating within the EU jurisdiction so they are always looking for better ways to comply with the regulations. Automating compliance by using innovative SaaS products is gaining steam for the design of enterprise systems.

RegTech Strategize Regulatory Impact for Business

RegTech assists businesses in making strategies for business decisions. RegTech is becoming essential for measuring the regulatory impact and viability of business decisions and commercial initiatives. Digital tools allow the identification and implementation of relevant laws and easy compliance. High-risk factors can be identified at the click of a button with the right solutions in place for business strategy. Digital tools provide clear answers to regulatory inquiries and stand vital for businesses across the globe.

Smart tools for cross-border risk management

In recent years, Regulatory risks associated with cross-border transactions have increased tremendously. The ease of instant cross-border business activities and automated workflows pose an additional regulatory liability for businesses. So there is a need for a robust compliance framework. Industry standards and legal requirements vary significantly between countries, making guidelines difficult to interpret. Often time businesses end up juggling multiple jurisdictions and complying with countless rules. Managing these risks can be a cumbersome task at a huge cost.

So RegTech offers a single interface for monitoring cross-border business activities and to meet the needs of AML and KYC. Digitized solutions for automated transaction-based cross-border monitoring can be a great help for businesses. RegTech empowers financial institutions, private banks, and FinTech startups, as they can now serve clients across many different jurisdictions. The RegTech capability of business transformation is gaining traction with financial institutions and businesses grappling to stay compliant with new and existing regulations.

Regtech is spurring to meet the needs of businesses to comply with stringent regulations. By adding automation, RegTech has facilitated the businesses to comply with regulations and avoid falling in the pit of fraudsters. It has transformed business activities in every possible manner.