How Advanced Technologies Like FinTech And RegTech Affects Financial Compliance?

Financial compliance is the monitoring and implementation of the regulations and legislation governing finance and the capital markets. From investment banking techniques to retail financial practices, it covers the whole financial spectrum. Financial compliance became an important concern for regulators and other concerned parties following the 2008 Global Financial Crisis. Adequate financial compliance in 2008 could have prevented people from losing their homes, pensions, and retirement money, as well as lowered the recession's overall severity. That's why it is important to achieve the requirements of financial compliance by financial institutions.

FinancialRegulatoryTechnology, FinancialCompliance, RegTech, FinTech, CommunicationCompliance, AIPoweredCommunicationCompliancePlatform, Shield


What is FinTech?

The phrase "financial technology," sometimes known as fintech, is used to refer to any new technology that aspires to enhance and automate the usage and supply of financial services. Using specialized software and algorithms on computers and smartphones, it helps both businesses and people manage their financial operations more effectively.


What is RegTech?
RegTech, or regulatory technology, refers to a group of software programs used to manage regulatory compliance. Companies invest in RegTech to save time and money, allowing resources that were earlier devoted to regulatory compliance to be moved elsewhere after RegTech takes over those responsibilities.

According to a 2016 Deloitte research, "RegTech is the new FinTech," RegTech is often cloud-based, which has the following benefits.
Cost-effective.
Flexible to use.
Performance can be measured.
Effective with security purposes.

The financial technology (FinTech) and regulatory technology (RegTech) industries are flourishing, Due to the expanding opportunities, they are providing financial services firms. FinTech is assisting companies in enhancing their consumer propositions while enhancing the effectiveness of their operations, and RegTech is empowering financial services companies to significantly enhance the way they manage their compliance processes.

The shield is an outstanding example of the cutting-edge FinTech and RegTech technology being created in Israel, and it is especially suitable to meet the demands of financial firms all across the USA, UAE, and beyond. Political barriers have historically made trade difficult, therefore there is a fantastic opportunity for Israeli technology companies like Shield to reach a completely new market with their cutting-edge communication compliance platform.

In conclusion, we can already see some of the benefits of employing this kind of technology as a result of the growth of RegTech and FinTech in the financial services sector. With the arrival of RegTech 3.0, examples like Capital Regulation have already undergone a transformation. For instance, before the advent of RegTech, financial firms were required to maintain a capital requirement in order to reduce risk. Many financial services companies will now place algorithmic compliance at the center of their efforts to manage capital regulation.

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