Regtech

Examples include automated KYC/AML tools, transaction monitoring platforms, e-signature and consent management systems, regulatory reporting automation, sanction and PEP screening tools, and solutions for managing GDPR or CCPA compliance. Blockchain auditing, real-time risk scoring, and biometric ID verification also fall under regtech.

Regtech improves compliance accuracy, reduces human error, and allows for real-time monitoring of regulatory requirements. It lowers costs associated with manual reviews, audits, and compliance staffing. It also provides audit trails, scalability, and the agility to adapt to fast-changing regulatory environments.

Integration with legacy systems, vendor risk, data interoperability, and keeping up with evolving regulations are key hurdles. Additionally, regtech providers must demonstrate the reliability, accuracy, and auditability of their tools to gain trust from compliance teams and regulators.