Regtech Intermediary for Regular Financial Companies.
At a time after Fintech began to shake up the financial services industry, Regtech aims to enable traditional financial institutions and legacy to fight significantly by streamlining the regulatory process. But in the end, the three categories are expected to play an important role in the future of finance.
It should be noted that, Regtech companies are a kind of intermediary between regulators and private companies. In the last episode of the Identity State podcast, both regulators and companies might feel more comfortable talking to an independent mediator than directly to each other for fear of the consequences that could be generated in developing strategies.
In remarks Parker Crockford, US commercial director of identity verification firm Onfido, admits that this “was born of Fintech” said that his company has moved beyond that distinction, expanding its focus to provide services to different types of businesses With different use cases.
Similarly to Crockford, “Regtech is the next piece that fits everyone’s needs,” as I emphasize, “so instead of competing directly with financial institutions, it’s there to help them compete with that kind of lot Of fintechs that are out there now, they are trying to be very damaging to the banking space”.
According to Ryan Zagone, director of regulatory communications at Ripple, a real-time cross-border payment network. He sees Fintech, Regtech and financial institutions joining together to find common ground, a shake of the industry that could ultimately benefit consumers, especially those who are currently underbanked.
Because regulatory and compliance processes are more efficient, consumers are more likely to adopt tools from financial institutions, greatly expanding financial inclusion around the world, generating a high level of confidence.
It should be noted that Regtech is not changing the regulatory requirements imposed on financial institutions, it simply simplifies the process that a bank needs to meet those requirements. In a world where banking is easier to access and still protects consumers, thanks to the teamwork of different industries, will benefit everyone in every corner of the world.
The cross-border payment company is optimistic and expects people to see this convergence of Regtech, Fintech and financial institutions, all together to take advantage of the basic skills of all these different players.
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