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The development of regtech has promised to strengthen the regulatory landscape by offering emerging markets with technically advanced solutions for the growing demand for risk and compliance management, both inside and beyond the financial industry
Fremont, CA: Regulatory Technology, popularly known as RegTech has found a new node in Singapore, wherein its growth lies in the city-state’s financial services sector. Global developments have paved the way for its emergence as the proliferation of fintech solutions and technology which has, in turn, mandated the increased adoption of regulatory technology.
Traditionally seen as a sub-sector of the financial technology or fintech, regtech involves operations such as identity management, control compliance, regulatory reporting, risk management, monitoring transaction, and data management for financial institutions.
However, the growth of fintech startups is not often leveraged and capitalized like that of a financial institution, the one with their new financial instruments and business models, increasing the regulatory complexity as well as risk. The groundbreaking technologies that involve fast paced machine trading also render financial transactions and activities that are harder to track and regulate.
The development of regtech has promised to strengthen the regulatory landscape by offering emerging markets with technically advanced solutions for the growing demand for risk and compliance management, both inside and beyond the financial industry.
According to a research study, Fintech Innovations: Perspectives from Singapore and London, by ICAEW and the Institute of Singapore Chartered Accountants (ISCA), Singapore like London, offers five significant elements which include capital, market, talent, strong government support, and progressive regulation, which are hoisting green flag for the development of fintech in the country.
Both Singapore and the United Kingdom host the regulators, who immensely support innovation and growth in the financial sector. Moreover, London and Singapore also host a massive investor pool and mature financial service sector. The innovation, coupled with high number of investors, offers to lay a strong foundation for the development of fintech and regtech in a readily established market for new products and services in the aforementioned countries. However, recent developments around Brexit may see Singapore supersede London in the near future.
See also: Top FinTech Solution Companies