“Fintech” describes an emerging financial services sector. The term first applied to the back-end of established consumer and trade financial institutions but has since been expanded to include any technological innovations in the financial sector, covering topics such as education, retail banking, investment and even crypto-currencies like bitcoin.

The term “regtech” was coined to describe the rise of technology specifically designed to meet regulatory mandates around the world.

Objective

Technology is a game changer in this respect. If you can apply digitalisation and automation to the regulatory process, they will greatly assist in providing robust, complete and reliable data in a timely and efficient way. Up until recently it simply was not feasible or viable to master the sheer amount of data created by millions of transactions each day.

In the era of Big Data technologies, however, computers and data storage facilities can comfortably handle terabytes of data flow. Despite the challenges posed by the recent waves of regulation, fintech and regtech have led to real progress by helping regulators manage the vast amount of data. We expect there to be even more progress in the future as regulators, market participants and market infrastructure providers continue to work closely together.

Fintech/regtech: the highlighted parts of the value chain are affected