After the 2008 global financial crisis, (GFC), FinTech and RegTech development were prioritized, and while some believe that RegTech is the replacement for FinTech, it would be an untrue assumption. The question now is, what is the difference between FinTech and RegTech?
FinTech
FinTech, which is short for Financial Technology, covers the entire range of financial services, focusing on five main areas: finance and investment, internal operations and risk management, data security and monetization, consumer interfaces payments and infrastructure. Most people think of FinTech as financial devices, however, the incorporation of technology into financial dealings are also a part thereof; another major part of FinTech is the inner processes of an organization by means of improving the IT skills of the organization.
FinTech is not a new occurrence but has begun a period of swift growth after the GFC, being in the third stage of the process already. The first stage of FinTech began in the 1860’s, although financial transactions, as well as the devices, used, therefore, can be traced back even farther – to the use of the abacus to be exact. FinTech’s second stage was the swift development in electronic payment systems during the 1960’s and 1970’s. After the 1987 Black Monday incident Circuit Breakers became highly useful as companies saw that they were all linked through technology. The third, and current stage of FinTech, began in 2007. When the GFC happened in 2008, it opened eyes to smartphone infiltration and complexity of application programming interfaces.
The solutions for these issues can be found in subdivisions of FinTech, under which in the category of RegTech.
RegTech
Regulatory Technology, also known as RegTech, was formed because the regulations for Financial Technology began to change and novel ways of handling FinTech arose. Although one should not see RegTech as merely a subdivision of FinTech, it is in actuality a completely distinct aspect. RegTech is not only appropriate to FinTech, but can be made a part of any regulatory situation as RegTech was formed for the purpose of resolving compliance issues in novel and exciting ways. After the GFC, financial organizations were under growing stress from the government to find ways of avoiding a repeat occurrence. Because of this compliance became a large focus for businesses, as the once enforcing the regulations were ruthless for any form of non-compliance to the regulations.
This is then where Compliance Compendium, (CC), is at your service. CC is a RegTech service provider, which deals in helping clients with their regulatory needs; allowing organizations – whether big or small – to easily comply with the regulations pressuring them. Visit https://www.compliancecompendium.co.uk to see exactly how Compliance Compendium can help you, or your organization, deal with regulations using their provided RegTech.