What is "RegTech"?

RegTech refers to the use of technologies to efficiently comply with the regulations and laws affecting corporate activities such as the finance. RegTech is rapidly gaining attention as one of the major trends, like FinTech and LegalTech, of change in existing industries where technology has not yet been fully leveraged.

The essence of RegTech, as the portmanteau of “regulation” and “technology” suggests, is to bring IT into the compliance-related work required to comply with laws and regulations. The scope of innovation categorized in RegTech are a wide variety of things including confirmation of customer identity (KYC: Know Your Customer), checking for association with criminal organizations or foreign PEPs (Politically Exposed Persons), detection of suspicious transactions, and the suppression of insider trading, illicit activity and money laundering.