What Is Regtech, and Why Is It Important?

Regtech refers to regulatory technology that uses automation to manage regulatory processes in the financial industry. Regtech relies on machine learning and artificial intelligence to automate tasks in compliance departments and help organizations meet the obligations set by regulatory institutions. It helps companies automate compliance data management and employee surveillance and prevent fraud.


Regtech tools automate repetitive tasks such as monitoring transactions, risk of fraudulent activity, and regulatory changes in real-time. They also generate reports and alert the compliance staff of any potential risks. This augments the staff’s role and increases their efficiency by allowing them to spend their time and energy on more important work.

Regtech companies typically work with financial institutions and regulatory bodies, sharing information using big data and cloud computing. Big financial institutions such as banks receive vast amounts of data, and it can be time-consuming, complex, and expensive to comb through the data. A Regtech company combines data from previous regulatory issues with new information from the bank to predict any potential risks the bank should look into.

Why Is Regtech Important?

Regtech is highly beneficial to organizations because it helps them reduce the cost and time needed to meet regulatory compliance obligations. Regtech compliance solutions are also crucial in the following ways:

Risk Management

By harnessing the power of big data and analytics, Regtech solutions can augment the incoming risk data through regulatory risk analytics and intelligence. This gives organizations and their compliance teams the ability to quickly visualize and prioritize key compliance tasks in their workflow tools to gauge their exposure to regulatory risk. These risk management SaaS platforms help save time and cost on regulatory processes.

Regulatory Compliance

Regtech applications help increase efficiency in surveillance and regulatory compliance. Companies can employ tons of communications and compliance platforms. The platforms, typically AI-powered, enable organizations to overcome significant challenges in their financial compliance domain. Some of the major problems companies face include:

  • Ineffective record-keeping
  • Market abuse
  • E-commerce and trade surveillance
  • Comprehensive investigations

Regulatory Reporting

SaaS regulatory solutions use big data analytics, real-time reporting, and cloud computing to drive automated data distribution in regulatory reporting. They also alert financial institutions such as insurance companies, banks, and investment brokerages of any regulatory reporting changes in real-time, which helps the organizations remain compliant.

Regtech Adoption Timeline

Starting the Regtech adoption process, especially for professionals without a background in data or technology, can be quite troubling. The successful adoption of Regtech solutions is often lengthy and complicated, but it’s easier when working with consultants. Our consultancy services will help you eliminate any bottlenecks in your Regtech adoption process.

What Is the Impact of Regtech?

Regtech solutions automate tasks and reduce the cost of regulatory compliance. These solutions range from simple solutions that automate workflows to high computational features that analyze and monitor large amounts of data. Regtech has the power to help companies improve their customer experiences and increase revenue through the automation and streamlining of regulatory compliance processes.

Bottom Line

Regulations tend to change every year as the government tries to keep up with technological progress. As such, most Regtech solutions rely on machine learning and AI to ensure the compliance of fintech companies with the established regulations.

Adopting Regtech solutions for your organization helps you keep up with the ever-changing regulations and stay compliant. Reach out to Ghost Mountain today for business consultancy services, and let us help you overcome any challenges in your company. We also provide accounting and senior finance recruiting options so that we can meet your staffing needs.

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