Are you watching the battle for the future of finance? On one side, there are FinTechs and on the other one, we have RegTechs. FinTechs are transforming the way people manage their finances. RegTechs, acting as the guardians of compliance, are ensuring that innovation doesn’t trample over essential regulations.
FinTech means companies using technology to facilitate the delivery of financial services, ranging from payments to investment management. Regtech is a space of financial regulation compliance – actions that include KYC and AML. They both serve different purposes. RegTech researches regulatory procedures in the financial industry, while FinTech seeks to make finances convenient for user benefit. The delineation brings to focus the subtle yet critical differences between these two.
FinTech is an umbrella term for various technologies that are revolutionizing the field of finance. It encompasses an array of applications that help improve the financial performance of businesses and consumers. It goes beyond the usual boundaries of traditional banking and offers solutions for money transfers, mobile check storage, loan applications, peer-to-peer lending, and more. The goal is to make financial services conveniently accessible to a larger audience.
FinTech helps in increasing and automating the delivery of financial services. The total market share of the 48 fintech unicorns is now over US$187 billion, which equates to approximately 1% of the global financial industry! From the emergence of digital currencies to changing banking practices, fintech growth has been incredible.
Regulatory compliance is a real challenge to financial institutions. RegTech solutions use technologies like AI and automation and leverage data analytics to guide regulators through the complexity of compliance issues. These solutions help in managing risks, securing data, and ensuring compliance with regulatory requirements.
The RegTech solutions have various forms and sizes that accommodate financial establishments. They include everything from comprehensive solutions that deliver real-time 360-degree views of compliance and risk to specialty single-code solutions that target specific regulatory zones. For instance, some RegTech solutions give a wide vista of compliance and risk information in actual time making it easy for financial institutions to effectively comply with and meet their regulatory requirements. Some other RegTech solutions are focused on assisting companies in KYC, AML, and transaction monitoring.
Let’s understand the difference between the two based on certain key parameters.
The two domains FinTech and RegTech are not separate worlds, as they frequently interact, creating a mutual relationship that improves the financial arena in its entirety. Let’s examine how –
FinTech makes the way for agile and customer-focused financial services and RegTech guarantees compliance and risk management. They are a potent duo, revolutionizing the financial world.
Unraveling the complexities of Fintech and RegTech is like navigating a regulatory labyrinth. But fear not! Verinite is your Ariadne’s thread, which shows the way in a complex network through professionalism and innovation.
Verinite enables your journey with domain knowledge, deep tech integration, and a full-service offering. From strategic consulting to the latest in application development, we arm you with the tools necessary to succeed as you navigate through the labyrinth.
Today, become a part of us and discover the unlimited capacity that is FinTech & RegTech together. Contact us today to create a stable, inclusive, and flexible financial environment for all.