The use of technology to create process efficiencies and enhanced user experiences has been fully entrenched in the financial services sector for some time. In recent years, the pace of change has quickened with the introduction of a kaleidoscope of new technologies such as data analytics, cloud computing, blockchain, machine learning and biometrics that can be applied to solve friction points within the financial services sector while meeting the needs of an ever-demanding digital savvy consumer.
Derivatives of Fintech have emerged to define specialized areas of technology innovation. One such branch is Regtech which applies technologies to solve regulatory and compliance requirements more effectively and efficiently. It is meant to permit better compliance solutions and lower the cost of ownership to comply to new regulation. Supporters of Regtech view it as an enabler not a threat to the industry; however, the complexities of implementing a successful Regtech solution should not be under estimated. Although technology is enabling better Regtech solutions, there are several market structure impediments that may prevent solutions from reaching their full potential.