Reg-Tech, as in using technology in an innovative application in the field of financial industry regulation.
Reg-Tech start-ups use processing technologies e.g. cloud computing, big data, AI, Machine Learning and other methods of data analysis to help banks and financial institutions in ‘detecting’ the frauds and ‘regulating’ the rules faster and more precise. They do a better and more accurate regulatory risk analysis. They use more suitable methods of risk analysis. The reports they have to hand-in to regulators are cheaper, faster and more ‘correct’ and eventually, they reduce risk and compensation costs.
Target costumers of Reg-Techs are, on one hand, banks, and financial institutes, using it to lower their risk. On the other hand, regulation and law unite using them to make their observations and decisions sharper and more widespread.
It’s noteworthy to say this field of FinTech is very important and trendy. In Iran too, eFarda, with an open innovation approach, provides the chance for start-ups to grow.