RegTech, short for “regulatory technology,” refers to the use of technology to help businesses meet their compliance and regulatory obligations more efficiently and accurately.
It sits at the intersection of compliance, risk management, and software.
In practical terms, RegTech is designed to:
Automate compliance processes
You can replace manual, error-prone tasks like monitoring, reporting, and recordkeeping with automated systems.
Improve accuracy and consistency
Technology reduces human error and ensures obligations are applied consistently across your business.
Enhance monitoring and detection
You can identify risks, breaches, or anomalies in real time rather than after the fact.
Simplify regulatory reporting
RegTech tools can generate and submit required reports in the correct format and timeframe.
Adapt to regulatory change
You can update rules and controls centrally as laws evolve, rather than relying on ad hoc changes.
Strengthen audit readiness
You maintain structured, accessible evidence of compliance that can be produced quickly when required.
Common examples include:
- AML/CTF transaction monitoring systems
- KYC and identity verification platforms
- Compliance management software
- Regulatory reporting tools
In essence, RegTech shifts compliance from a manual, reactive function to a more automated, proactive capability.
Key insight: RegTech uses technology to turn compliance into a scalable, real-time, and data-driven business function. does.
‘Regtech’ is the specialised application of technology to legal, regulatory and compliance obligations (often including risk management and governance). There’s generally some overlap between the consumer-facing Fintech and the business-facing Regtech, but they’re often complementary.
KPMG’s excellent report on the Fintech landscape covers both – including our regtech solution.
Read “Seven questions about your perfect solution: the reality of regtech”
If you have more questions please reach out to us or access the free content on our site.