Financial industry companies are expanding changing to virtual technology to meet laborious regulatory demands aimed at fighting financial scam, building a slot tech market that is supposed to increase to around $120 billion by 2020. RegTech,(Regulatory Technology) suggests banks automated solutions that can step up the unwieldy process of vetting consumers and transactions, which is necessary to prevent money laundering and other financial felonies. Authorities are also searching for more patterned virtual transaction information from banks to spot potential scam more dependably and with less employee. Peter Hetz director at Veridate Financial said “the claim for this is huge, everybody needs it, whose software helps family offices and fund managers verify the identity and background of new clients and create reports for regulators”.
Speaking at the Thomson Reuters Pan Asia Regulatory Summit this week, officials at the Hong Kong Monetary Authority and markets watchdog Securities and Futures Commission (SFC) saw major opportunities for technology to help financial companies meet thriving regulatory conditions. Consultancy Quinlan & Associates estimated in a report this week that one such technology, blockchain, could cut the costs that banks incur to comply with anti-money laundering rules by $4.6 billion a year – or 32 percent of current annual costs – through reduced headcount, technology spend and regulatory fines. Hong Kong-based start ups Veridate and FixNix, automates audit and risk tasks for small companies in India, are betting that as financial firms look to avoid regulatory penalties and aim on their core businesses, more of their compliance budget will go to technology. Veridate automated audit process can curtail the time to sign up a new consumer at banks and asset managers to several minutes from weeks presently. By virtualizing different tasks, watchdogs can also request regular checks to make sure banks’ clients remain compliant and monitor potential risk and scam more strictly. The SFC is releasing a major project with 20 financial institutions to track and observe systemic risk using RegTech.