With summer here, our thoughts are turning to the many ways to enjoy some outdoor fun. And, a dip in the pool is always at the top of the list. But, on the business side, a jump into the regtech pool may not seem like such a carefree activity and actually can be pretty intimidating.
First, what is regtech anyway? The word is a combination of the words “regulatory” and “technology” and the idea is that it represents the concept of innovative technology to address regulatory challenges. You might say it is the next generation of “fintech”. As you can probably guess from the name, the idea is that it saves time and perhaps money, by providing technological solutions to manual and/or time consuming processes. So far, so good, right?
But, before a fear of jumping in the deep end of the regtech pool overcomes you, let’s think about this idea. It’s not new. We’ve been using “regtech” for years. That loan origination system you’ve been using to help create loan documents? That’s regtech by another name. And, that AML software you’ve come to love? Yep, regtech again. Oh, and that snazzy system you use to confirm receipt of documents and electronic signatures? You guessed it – regtech. All of those things and more, were regtech before regtech became trendy.
So, don’t let the name scare you. It’s just a new way of talking about things we have been doing all along. Of course, what’s new is what this next generation of solutions will be able to do for us. If you think about it that way, that’s more exciting than scary!
We are all for anything that can make regulatory compliance a little easier or more efficient, and regtech certainly has the potential to do that. And, just imagine how impressed your IT folks will be when you start using terms like “regtech” in casual conversations!
So whether you are ready to do a cannonball into the regtech pool, or are just thinking about dipping your toe in the water, remember that you’ve already been in that pool for a while. It’s just that the pool has gotten a little bigger and now has a name.