Industry news: regtech rising rapidly
At KPMG Matchi, we realised that regtech was set to become a key business driver, which is why we launched our RegTech Portal in 2018. As regulation continues to expand, with ongoing introductions and tweaks, it remains a major challenge for many businesses. Regtech companies are seeking to make compliance easier and more efficient.
In an article titled “The swift climb of regtech: How technology is transforming regulatory compliance”, Prajit Nanu, Co-founder of InstaReM (a Singapore-headquartered fintech company offering digital cross-border money transfers to individuals and businesses) examines how regulatory compliance acts as an inhibiting factor for entry into financial services, and how regtech specialists are working to change that.
He points out that the term regtech was first coined in 2015 by the UK’s Financial Conduct Authority (FCA), which called it “a subset of fintech that focuses on technologies that may facilitate the delivery of regulatory requirements more efficiently and effectively than existing capabilities’.
Nanu explores how regtech providers are helping financial institutions to simplify their compliance across areas such as Know Your Customer (KYC), customer credit scoring, transaction monitoring, anti-money laundering (AML) screening, fraud detection/prevention, trade data tracking and risk analysis, among others.
He makes the case that regtech is going to continue to grow, citing KPMG’s The Pulse of Digital 2018 report, which found that venture capital funding to regtech companies in the first six months of 2018 alone exceeded overall regtech funding during 2017.
At KPMG Matchi, we agree that regtech can help financial institutions to develop a competitive advantage and that it can facilitate disruption and innovation. Our KPMG Matchi RegTech Portal has been developed to allow financial institutions and regulators to view the latest regtech solutions available, as well as global news and thought leadership in this fast-changing space. With content curated by KPMG regulatory and fintech / regtech specialists, it allows you to plug into a global network of resources, as well as tracking the ever-growing universe of innovative regtech solutions that can improve the way in which regulatory compliance is delivered. Arrange for a demo here.
As Nanu writes, “The disruption of banks and financial services is a well-known phenomenon. Players who sustain this, however, will be those who get the regtech aspect right.” Click here to read the full article on YourStory.