Amidst the booming FinTech Space, RegTech might be a buzzword that is often heard in discussion within the FSI (Financial Services Industry). But do you know what RegTech is? What does RegTech do? How is RegTech different from FinTech?

Definitions

RegTech is defined, by CB Insights, as:

"Technology that addresses regulatory challenges and facilitates the delivery of compliance requirements"

Misunderstandings

It is commonly understood that RegTech is a subset of FinTech, however, as a matter of fact, RegTech is much broader than FinTech.

Complex and heavy regulatory requirements are present in numerous other industries and not just unique to the FSI. For example, the Oil & Gas, Pharmaceutical and Healthcare industry.

More important than the definition of RegTech, we need to understand what RegTech can bring for us in this new era of technology changes, its characteristics and its potential benefits.