Importance of Reg-Tech:
Over the past few decades, the number of regulations in the US has increased rapidly, with the number of words in the Code of Federal Regulations increasing from 35 Million to 103+ Million between 1970 and 2017. This makes it harder and harder for businesses to comply, however, a new industry called Reg-Tech is aiming to reduce the burden on companies.
Over the past few decades, the number of regulations in the US has increased rapidly, with the number of words in the Code of Federal Regulations increasing from 35 Million to 103+ Million between 1970 and 2017. This makes it harder and harder for businesses to comply, however, a new industry called Reg-Tech is aiming to reduce the burden on companies.
So what exactly is Reg-Tech? Reg-Tech or Regulatory Technology is any technology that assists businesses in complying with rules and regulations. To keep up with the increases in regulations, businesses are turning to Reg-Tech to help them comply as efficiently and cost-effectively as possible. Reg-Tech companies also typically use cloud computing technologies as they are relatively cheap. Reg-Tech tools can monitor activities in real-time and provide reports so that companies can quickly deal with any potential risks. This can prove to be a useful and low-cost solution for a lot of businesses that don’t have a team that is constantly making sure that they are meeting the ever-evolving regulations. The computer can take the load off of humans and do the job much more efficiently.
Let’s have a look at how Reg-Tech came to be in the first place. The Reg-Tech industry formed due to a combination of 3 things: The advancement of AI, reliance on the web, and increased regulations.
AI: In the past decade, AI has advanced very quickly. Now, computers with AI can complete tasks without needing a programmer to give them specific, step-by-step instructions. This means that large applications such as the ones used in Reg-Tech are much easier to manage.
Reliance on the web: As more and more businesses use web based applications and store consumer data online, there is an increased risk for cyber attacks and fraud. This creates tremendous demand for Reg-Tech as companies seek to avoid negative outcomes.
Increased Regulations: As we talked about earlier, the amount of regulations has skyrocketed and businesses need Reg-Tech to reduce risks and avoid fines for not following regulations.
What Does This Mean For The Future?
In the future, the number of regulations will only increase and therefore the demand for Reg-Tech will also continue to increase. Reg-Tech should also become more sophisticated and reliable as the AI gets smarter. And according to a report, the Reg-Tech market size is expected to reach$55.28 Billion by 2025.