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BizReport : Law & Regulation : January 17, 2017

Expert: How RegTech will impact 2017

The digital space is a fast-changing device, and brands who do not change with the times could lose their hold on the marketplace. RegTech is a new term buzzing around. Here's what brands need to know.

by Kristina Knight

Kristina: What is RegTech?

Alex Baydin, CEO, PerformLine: RegTech, short for regulatory technology, is defined by the Institute of International Finance as "the use of new technologies to solve regulatory and compliance requirements more effectively and efficiently." The goal of RegTech solutions is to reduce the complexity and capacity-demanding qualities of compliance while constantly and quickly adapting to new changes in regulations. With RegTech, companies are able to put capital to better use, reduce risks within the system, and improve quality of supervision via enhanced insights.

We like to think of RegTech as akin to the helmet a skier wears when racing down an Olympic downhill course -- it protects companies while they move at breakneck speed. Regulation technologies help to keep companies safe while they innovate and move quickly to stay ahead of their competitors.

Kristina: What influence will RegTech have on 2017?

Alex: With companies adopting RegTech for their compliance processes, the skill set for compliance is calling for more tech folks. The field of compliance will require professionals who are able to evaluate and understand the right technology for their company that enables them to keep up with regulatory change and demand. Comprehensive and streamlined recording of actions powered by RegTech can significantly automate and simplify the reporting process.

RegTech will not only improve compliance efficiencies, but it can also help regulators understand new innovations and trends in the financial services space. Regulators often find themselves inundated with big data and may need to turn to RegTech to analyze data for deep insights. Regulatory databases like the CFPB Consumer Complaint Database can be mined for trends and integrated into RegTech to inform compliance programs.

Kristina: What benefits could brands focused on RegTech see?

Alex: Overall, the rise of RegTech will allow companies using them to be more agile and faster in reacting to changing regulations, to mine existing "big data" to unlock new uses, and to do all of these things while reducing the cost of compliance.

Tags: advertising, advertising regulation, advertising trends, PerformLine, regtech, regulatory tech

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