January 17, 2024
What is RegTech?

What is RegTech?

Wealth management firms are embracing regulation technology (RegTech) to ensure compliance. However, it's essential to conduct thorough research before partnering with a RegTech vendor. In this blog post, we will explore the advantages of utilizing RegTech software for wealth management firms and highlight key factors to consider when selecting the best solution for your business.

RegTech is rapidly growing. 

Regulatory technology is experiencing rapid growth due to its ability to assist firms in meeting their compliance requirements. This is particularly valuable as compliance can often be a time-consuming and expensive process. It is important to note that RegTech is not just a passing trend, but rather an industry that has been in existence for many years. However, recent advancements in technology and changes in regulations around the world have driven its increased adoption and popularity.

RegTech encompasses various technologies employed by businesses and organizations to ensure compliance with financial regulations. This includes areas such as Know Your Customer (KYC), Anti Money Laundering (AML), Countering Financing of Terrorism (CFT), as well as facilitating services like payments processing and risk management.

What makes up RegTech software?

RegTech software is a technology that helps wealth management firms meet regulatory requirements across multiple jurisdictions. Further, RegTech automates compliance processes and helps firms handle client information responsibly, protecting client data and preventing breaches of sensitive information.

RegTech can be used to automate the following processes:

  • Client Onboarding – RegTech can help automate determining whether new clients meet all KYC (know your customer) requirements before accepting an investment from them. This ensures that all required documents are collected at this stage, so there is no need for additional paperwork later on in the relationship with a client or investor.
  • Monitoring Transactions – RegTech can monitor transactions as well as any suspicious activity on behalf of your firm, so you have peace of mind knowing that everything is being monitored 24/7.
  • Reporting Information – Besides monitoring transactions, RegTech may also report relevant data back into your system, allowing you access whenever needed without having anyone manually enter anything into spreadsheets or databases first.

RegTech solutions assist wealth management firms in achieving compliance.

RegTech solutions are valuable tools that assist firms in responsibly managing client information, safeguarding client data, and preventing breaches of sensitive information.

Furthermore, by integrating RegTech with cloud computing, businesses can bolster their defenses against cyberattacks by hackers attempting to pilfer confidential data.

RegTech solutions offer the following benefits:

  • Helping businesses meet compliance requirements in various jurisdictions.
  • Ensuring that customer data is securely stored and can only be accessed by authorized staff members, such as during customer service interactions.
  • Implementing measures, such as robust passwords or biometric verification, to prevent unauthorized employee access.

RegVerse's Role in RegTech 

At RegVerse, we have a deep understanding of regulation and compliance software in the financial services and wealth management sectors. Our expertise enables us to explain how RegTech software can assist your wealth management firm in meeting compliance requirements. 

If you would like to learn more about our services and how we can assist you, please do not hesitate to contact us today.

Sid Yenamandra
CEO of RegVerse