When it comes to reporting, compliance and regulation, the global financial crisis of 2008 was a game-changer. Over the last decade, you may have become aware of an evolution in Financial Technology (FinTech) that has resulted in tech for financial regulation or Regulatory Technology (RegTech).
In a December 6, 2018, MarketsandMarkets report, it was estimated that the RegTech market today could expand to $12.3 billion by 2023. By innovating common regulatory problems, RegTech makes use of developments like Blockchain technology, Artificial Intelligence (AI), Machine Learning and Big Data.
However, as evolution continues in the solutions found within RegTech, the regulatory landscape may have to surmount many obstacles in order to keep pace with the ensuing disruption.
What might the future hold and how could RegTech impact your overall digital strategy?
Regulations are skyrocketing
A massive deployment of new regulation has emerged as a result of the global financial crisis, with over 50,000 new regulations since the catastrophe. To put things into perspective, that's one new regulatory alert every seven minutes!
This development has taken a toll on the financial service industry, with banks alone spending hundreds of billions of dollars annually.