RegTech is the management of regulatory processes within the financial industry through technology. The main functions of RegTech include regulatory monitoring, reporting, and compliance.
RegTech is important because it can help reduce the cost and time of meeting regulatory compliance obligations for organizations. For instance, complying with Know Your Customer (KYC) and anti-money laundering (AML) accounts for a large portion of the estimated 15 to 20 percent of the operational costs spent on governance, risk, and compliance (GRC). But KYC and AML duties are highly routine and ripe for automation.
RegTech uses many cutting-edge technologies such as artificial intelligence, big data, cloud computing, machine learning, to name a few, which ensure companies are more effective in reaching regulatory compliance. RegTech has helped minimize the risk of human error by automating the processes.
The following are 4 RegTech companies to watch out for in 2022:
Clausematch provides banks and businesses with end-to-end policy management and regulatory compliance solutions to help organizations navigate the compliance lifecycle. The CM platform is built using the latest technologies and web standards to deliver granular document authoring, management, and workflow collaboration processes.
London headquartered ComplyAdvantage is a RegTech company that uses AI and ML to help firms manage compliance obligations. The company provides data intelligence to help firms understand the risk of who they’re doing business with while automating compliance and risk processes.
Founded in 2012, Onfido is a software company that helps businesses verify people’s identities using a photo-based identity document, a selfie, and artificial intelligence (AI) algorithms. Onfido provides identity verification through its online platform. The company uses manual and automated machine learning (ML) technologies, including optical character recognition and face detection, to compare and cross-reference a person’s facial biometrics with their identity document to prevent fraud.
Irish FinTech Fenergo is a provider of client onboarding lifecycle management software for corporate, investment, and private banks. The RegTech’s onboarding technologies spans front and middle office operations intending to provide banking clients with an end-to-end client lifecycle management solution that includes compliance and banking process management such as onboarding compliance, legal entity data management, product onboarding, collateral management, client servicing, and credit mitigants and collateral management.
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