ZEDRA Director for Guernsey, John Hunter, asks the question, “Is RegTech the new FinTech”
19 May 2017
“RegTech” has rapidly risen to prominence from complete obscurity, but what exactly is Regulatory Technology (RegTech)? And why is it becoming the new FinTech?
“RegTech is pretty much what is says on the tin: the use of new technology to facilitate the delivery of regulatory requirements,” writes John Hunter in Business Brief this month. “RegTech is technology that seeks to provide agile, configurable, easily integrated, secure, cost-effective and reliable regulatory solutions.”
As a guest writer in the magazine this month, John Hunter begs the question, “Is RegTech the new FinTech.”
“In itself, this relationship between regulation and technology is not new. However, it is becoming more and more critical in its use, as levels of regulation increase, resulting in a greater focus on data capture and reporting. It is also addressing a gap in the financial services market that is being disrupted at a rapid pace by FinTech, an industry composed of traditional financial institutions that use new technology and innovation in the delivery of financial services facilitated by Algorithmic, Robo, or Automated trading platforms.
The UK’s financial regulator, the Financial Conduct Authority (FCA) has also become a real comparative differentiator for the UK’s FinTech industry. The FCA’s “engage rather than enforce approach” has positioned the UK as the leading global FinTech centre. The FCA is also committed to supporting the success of the FinTech industry particularly post Brexit and therefore, the extension and advancement of this disruption caused by FinTech, will inevitably have a similar “knock on” effect in the further development of RegTech.
Business Brief, which is now in its 25th year of publishing, has been reporting and reflecting on the Channel Island business community since 1992.
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