Regulatory Technology (RegTech) is primarily the response to the huge costs of complying with new institutional demands by regulators and policy-makers. Primary objective of the Regulatory Technologies is to cut the huge costs of non compliance with the regulations.
However, as the term started becoming popular, significant technology startups started addressing the issue of Regulatory issues in different manner. Evolution of the startups in the Regtech space is gathering momentum as these companies are trying to marry innovative technologies with the Regulations.
RegTech is a sub-set of FinTech that focuses on technologies that may facilitate the delivery of regulatory requirements more efficiently and effectively than existing capabilities.
There are various examples of Regtech from Truiloo to Riskpro, where Truiloo offers exhaustive and effective KYC solution, Riskpro compliments the Regulatory requirements by upgrading the data quality. Solutions offered by Riskpro not only attack the risk classification but also help the financial institutions in updating their data quality.