RegTech is the new up and coming sector. What is Regtech?
“Mar 27, 2018 - Fintech (an abbreviation of financial technology) is an umbrella term for any kind of technological innovation used to support or provide financial services. It is creating many changes in the financial sector and giving rise to a range of new business models, applications, processes and products.”
Fintech has seen an explosion of talented startups operating in the financial sector. There are many diverse offerings which is not surprising given the breadth of possibilities to do things differently from the way they have been for years.
Mobile phone applications have been in the forefront with consumer driven desires for better access to information and management of cash and other mainstream items without having to pop in to the local branch. Stepping up and flashing your mobile app to pay for a meal or goods instead of getting out a tired worn credit card. Fintech is a huge spread of ideas and apps in this area
On a lesser scale but addressing the same motives, there are products like Mimocool which, although more focussed on corporate issues, recognise a demand for better ways to conform to more and more stringent regulations. As we know, the food and medications sector has increasingly definitive regulations about supply and delivery of vulnerable food products and tight conformity rules about storing sensitive medications.
The impact of this is considerable. The existing systems of perfunctory manual checks on cold storage are not expandable to match the need. Once upon a time, when medication of vaccine storage was less regulated, it was not unrealistic to do random checks. But that involves assumptions that the monitored medium is reasonably stable. When that is looked at in more detail, it can be seen that this assumption is not quite correct, for a number of reasons.
But it is just not feasible now to employ staff to check every fifteen minutes on such a task. Plus having to cope with the resulting data volumes. Staff availability and time restricts a better option
Moving forward, industry is seeing regulatory demands that require accuracy and frequent checks for both foodstuffs and vaccine/medications in cold chain storage, both in-house as well as in the delivery cycle.
As with Fintech, the market and regulatory demands are fostering new thinking about a new technology approach. Technology it should be said that has only become available over last three years.
So the market coined the RegTech label. Technology driven by regulatory pressures. More will follow
RegTech is about keeping abreast of compliance requirements
More on the subject: https://complyadvantage.com/blog/what-is-regtech/