Many of the drawbacks that the digital world has had is the lack of regulation. The particularities of this medium have made regulation difficult, perhaps due to the lack of tools to access this legal space. In the last few years, a new tool has developed potential to advance in these legal actions, its name is regtech ("reg" comes from regulation and "tech" from technology) and has proven to have a good reach, at least in financial companies, specifically in the financial and banking sector.
What does RegTech consist of?
The development of RegTech is based on the generation of services that optimize regulation and compliance with laws. The use of technological tools, which allow companies to have the necessary mechanisms to protect the integrity of users on the network and, at the same time, facilitate the application of regulatory controls over the companies.
To achieve this, are supported by technologies such as big data, blockchain, blockchainThe company's solutions, cloud, artificial intelligence, machine learning, among others, have the capabilities to manage these regulatory systems.
The RegTech proposal has been a valuable opportunity for the banking entitiesThe application of technological solutions significantly reduces costs and work effort, and their application also means obtaining much more accurate information for the evaluation of supervisory bodies. Technological solutions significantly reduce costs and work effort, and their application also means obtaining much more accurate information for the evaluation of supervisory bodies. Another great advantage of these applications is the possibility of adapting to other legal requirements, if needed, because their design allows changes in programming.
The use of RegTech so far in banking institutions, has been considered as a way to improve the agility, speed, flexibility and accuracy of the information used in the activities of this financial sector. Some specialists in the area estimate that probably all or most banks will use regtech solutions, as it is an area that is growing rapidly due to its high potential, security and adaptability. Even a study prepared by Juniper Research and registered in the blog of the Madrid Bar Association estimates that RegTech spending will increase fivefold over the next five years.
Among the particularities of this tool is also its versatility.Some use semantic analysis tools to automatically update regulatory changes, while others focus on regulatory reporting. Some employ semantic analysis tools to automatically update regulatory changes, while others focus on regulatory reporting.
