The Benefit Of RegTech: Trust Building
Smith believes regtech companies like hers provide a less trumpeted but equally important benefit to the industry: trust-building.
“Customer expectation is growing in reaction to what has gone on in the past. People are going to expect far more transparency in their financial dealings with companies. There will come a point where people will expect to have a copy of the conversation they’ve had, and we can do that.”
The pace of change and the bewildering amount of regulation globally is only going to increase. There are 90 regulators worldwide issuing more and more rules, presenting businesses with new challenges on a regular basis.
“The regulatory landscape is changing all the time,” says Anderson. “In the US it’s slowing down, here we’ve just had GDPR, then there’s a lot of complexity on a geopolitical level, and around the corner with Brexit. If you look at a major bank that’s trading in the UK and the EU, there’s a presumed layer of complexity that we might need to adhere to dual or parallel regulation.”
This all ensures the demand for the kind of solutions regtechs offer is not going to diminish. In short, this isn’t the last you’ve heard of the regtech boom.