RegTech
Technology used by regulated entities to meet regulatory obligations more efficiently - the supply-side counterpart to SupTech, which is technology used by regulators.
Definition
RegTech is the broad category of technology - software, data services, analytics - used by regulated entities to meet regulatory obligations more efficiently, reliably and at lower cost. It is the supply-side counterpart of SupTech, which refers to technology used by supervisors and regulators themselves.
Core RegTech verticals
- KYC / onboarding - identity verification, document checks, UBO discovery.
- Transaction monitoring / fraud - rule engines, ML, network analytics.
- Sanctions screening.
- Regulatory reporting - MiFIR, EMIR, COREP, FINREP, AnaCredit, AEOI.
- Regulatory watch / horizon scanning - change-management, impact assessment.
- Market surveillance - MAR/MiCA-grade venue surveillance.
- ESG and operational resilience reporting.
Why it matters
Compliance budgets at large banks routinely exceed €1bn per year, and most of that spend is non-discretionary. RegTech is the lever to flatten the cost curve while raising control quality - and increasingly, regulators expect RegTech adoption as part of the proportionality test built into the risk-based approach.