The use of technology by the world’s major banks to improve their working mechanisms is given by the field that has spanned the whole issue of the technological age; these services are referred to as Fintech (finance and technology) that are given to take advantage of the most advanced technologies in financial terms to develop innovative products and has also emerged as a powerful competitor to traditional banking; attacking its most profitable business.
However, as we have the Fintech we also have an important potential partner in the development of services for banks themselves, as provided by regtech, focused on facilitating the financial sector regulatory compliance of the recent tsunami.
How to understand the regtech?
It could be said that is a coined term to classify a group of companies that are based on new technologies such as cloud, big data or blockchain which are creating solutions to help companies of all sectors to meet regulatory requirements. In the financial sector, it is considered a sub-area of what is known generically as Fintech as it’s highlighted by the BBVA group.
With the banking landscape today in the new pulse that has sparked the arrival of new financial firms based on technological solutions called Fintech; there is also space to give a handshake. The regtech, a subsegment of these new companies focused on helping banks to digest and implement the new regulatory burden, supose a growing help for financial institutions.
Digital regulation manager Javier Sebastian explains at BBVA Research “We have to keep in mind that regulatory compliance is one of the main loads in time and cost for financial institutions. This has been aggravated as a result of the financial crisis which has caused a significant increase in requests for information by the authorities” according to the site Cinco Dias.
“From this point of view, the regtech solutions offer as a main benefit to the banks a potential for significant cost reductions and efforts, while allowing to provide more accurate information to the supervisory bodies”, continues relating Javier Sebastian.
In this same vein, Juan Rufat, banks partner in the international consulting Axis Corporate says “bring innovation and new solutions to existing problems, but also improve efficiency in the short-term adaptation of mandatory rules for all financial institutions taking advantage of synergies, as well as being key players in future models of collaborative relationships within the financial sector in the regulatory and policy areas.”
Some experts of the BBVA consider that is very important to promote the regtech (Banco Bilbao Vizcaya Argentaria) because those are not only an aid for traditional banks but also direct support to the work of regulators and supervisors to provide a highly granular and accurate information ideally almost in real time, which would facilitate the monitoring of systemic risk, on one hand, and an additional guarantee for customers of financial institutions.
Source: Cinco Dias
Disclaimer: InfoCoin is not affiliated with any of the companies mentioned in this article and is not responsible for their products and/or services. This press release is for informational purposes only. Information does not constitute an investment advice or an offer to invest.