Regtech involves the employment of tools such as blockchain technology, artificial intelligence, and other advanced software in efforts to lower regulatory costs. Bain & Co. identified 80 new companies and named them ‘emerging Regtech.’ Products and services from the companies are trying to find their way into compliance in heavy industries like banking and insurance that require a tech-supplied to boost their profits.
Most of the young businesses are still private and have the potential to grow. Banks invest heavily in measures that enhance compliance with business jurisdictions rules. Insurance firms ramp up their money on Regtech products and services since the investment is lucrative.
An American banker noted the tedious paperwork involved in opening or amending a bank account. Much of the documentation relates to federal anti-corruption rules and anti-money laundering. Fulfilling regulations and keeping the compliance updated through legacy systems like computers is expensive and time-consuming. Regtech products are reasonably charged and take effect within three months.
Regulators take notice and bring the young entities into their system. The act demonstrates their investment potential in the sector. Cooperate institutions like Office of the Comptroller of the Currency (OCC), Singapore’s monetary authority, and the Bank of England are planning on using Regtech services and products.
Jeff Yastine is currently the Total Wealth Insider editor. In 2015, he was the editorial director of Banyan Hill Publishing. Jeff has experience of more than twenty years in business world events for working as a financial journalist and stock market investor.
Mr. Jeff Yastine contributes weekly to Winning Investor Daily and Banyan Hill’s Sovereign Investor Daily. He aims at helping investors understand economic and monetary changes, business, and identifying profit-making opportunities brought up by financial editors. The correspondent of PBS Nightly Business Report and Emmy-nominated anchor has interviewed several successful entrepreneurs and financiers like Michael Dell, Warren Buffett, and Sir Richard Branson.
Mr. Jeff reports helped in identifying investment opportunities in small-cap growth stocks, large firm turnarounds, and across numerous sectors including agriculture and biopharmaceutical fields. The reports served as a warning to developers about any unseen real estate crisis. He reported on major national issues like the financial impacts of Hurricane Katrina in 2005, the influence of foreign automakers in building new manufacturing facilities in the southeastern United States, the 1999 historic handover of the Panama Canal, and Deepwater Horizon oil spill in 2010. Jeff Yastine won the 2007 Business Emmy Award and 2002 New York State Society of Certified Public Accountants’ Excellence in Financial Journalism Award.