What is RegTech (Regulatory Technology)?

What is RegTech

"Regtech is an emerging field that offers many benefits to businesses and regulators"


Regulatory technology, or regtech, is an emerging field that has rapidly gained popularity over the past decade. Regtech refers to using technology to improve regulatory compliance, enhance risk management, and streamline business reporting requirements. In this blog, we will explore regulatory technology, its benefits, and the challenges associated with its adoption.

Regulatory technology can be defined as the use of technology to help companies comply with regulatory requirements. Regtech solutions use a range of technologies that automate compliance processes and reduce the burden of regulatory compliance. While helping businesses achieve all things that high-level due diligence requires.

What are the RegTech categories?

Regtech solutions can be classified into several categories, including:

Risk Management Solutions

These solutions help companies manage risks by providing tools to monitor, measure, and analyse risk. These solutions also provide alerts and notifications to help companies stay on top of regulatory requirements.

Compliance Monitoring Solutions

These solutions help companies monitor and report on compliance requirements. They automate the process of data collection, analysis, and reporting, making it easier for companies to comply with regulatory requirements.

Fraud Detection Solutions

These solutions use advanced analytics to detect and prevent fraud. They help companies identify and analyse patterns and anomalies in data to identify potential fraud risks.

Identity Verification Solutions

These solutions verify the identity of customers, employees, and partners. They can also verify the authenticity of documents and other important information. Allowing businesses to be sure of who their clients are.

What are the benefits of RegTech?

Regulatory technology offers many benefits to businesses, regulators, and consumers alike. Here are some of the key benefits:

Improved Compliance

Regtech solutions help companies comply more efficiently and effectively with regulatory requirements. By automating compliance processes, companies can reduce the risk of non-compliance and avoid costly penalties while helping the fight against money laundering.

Cost Savings

Regtech solutions can reduce the cost of regulatory compliance by automating manual processes and reducing the need for human intervention, leading to significant cost savings for businesses.

Enhanced Risk Management

Regtech solutions provide real-time risk monitoring and analysis, which helps companies identify and respond to risks more quickly. Helping reduce the impact of threats and improve overall risk management.

Increased Transparency

Regtech solutions provide regulators with more comprehensive and accurate data, which helps them make better decisions and enforce regulations more effectively.

Challenges of RegTech Adoption

Despite the many benefits of regulatory technology, there are several challenges associated with its adoption. Here are some of the key challenges:

Resistance to Change

Many businesses resist change and may be reluctant to adopt new technologies, especially if they perceive it as disruptive to their existing processes.


Regulatory technology can be complex and challenging to implement. Companies may require significant technical expertise and resources to implement and maintain these solutions. At Validient, we have made sure to make the process of acquiring technology easy.

Data Quality

Regtech solutions rely on accurate and timely data to operate effectively. If the data is complete and accurate, it can lead to correct compliance reporting.

Regulatory Hurdles

Regulators may have different requirements for data and reporting, making it difficult for businesses to implement a single solution that can meet all regulatory requirements.

Validient's role in RegTech and how Validient can help

Validient software provides various solutions to support organisations in compliance, risk management, and regulatory requirements. Our solutions combine advanced analytics, automation and facial biometrics while helping organisations make data-driven decisions and improve operational and compliance efficiency, by helping prevent money laundering.

Specifically, Validient offers solutions in the following areas:

  •          Document verification
  •          Biometric Identity Verification
  •          Ongoing Client Monitoring 
  •          Risk Management
  •          Anti-Money Laundering Checks

To find out more, book a free trial today!


Regtech is an emerging field that offers many benefits to businesses, regulators, and consumers alike. By using technology to improve regulatory compliance, enhance risk management, and streamline reporting requirements, companies can reduce the burden of compliance and improve overall efficiency. 

However, adopting regulatory technology can also be challenging, and businesses must be prepared to address these challenges to realise the benefits of regtech solutions fully. We have several other blogs about AML and compliance where we further detail UK regulations. You can find out more here.

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