Use of Regtech in Compliance Practices – A Technological Innovation

‘Fin-Tech’, ‘Reg-Tech’, ‘Insure-Tech’, are the new buzzwords in the financial industry. They refer to the use of technology in the fields of finance, regulation & insurance respectively. A strong co-relation is being seen between the advancement in the field of Fin tech and the development of RegTech. The advancement of FinTech has posed a new challenge for the regulators. The number of regulations that a business enterprise has to deal with is already quite substantial and with the advent of new technologies, more laws are or likely to be in place for data security. To deal with the multitude of compliance regulations, businesses are spending a lot of money on lawyers, consultants and regulatory advisors, and facing a spiral rise in their legal costs. Technology is now coming to the aid of the business enterprises, as a more economical option. This aspect is the subject of research here. The development of RegTech or use of technology in regulation is still in the early stages of development, but is being widely discussed and also applied to streamline financial regulations and supervision. The current paper introduces the reader to the world of RegTech. It traces the genesis, the important features, elements and the various categories of RegTech services available along with the advantages it offers to businesses as well as the regulators i.e. the governing bodies