Up to this point, RegTech has concentrated on automating manual reporting and compliance activities in the financial services sector.
It comprises of a network of organizations that save money and assist businesses in adhering to rules. The popularity of digital products has led to an increase in money laundering, cybercrime, data breaches, and other illicit acts.
By hardened criminals who always look smart, RegTech has decreased cyber hacking and money laundering.
Regtech tools monitor online transactions in real-time in an effort to spot problems or abnormalities in the digital payment system.
RegTech is growing in popularity as regulations expand at what seems to be an infinite rate. Companies, particularly those in the financial industry, must maintain a tight rein on compliance or else face steep fines or reputational harm. These are the five benefit attributed to it.
1. Improvements in Risk Management