Why Your FinTech Startup Needs RegTech
Regulation is a huge issue in the financial sector (you can read more about how it’s affected big banking and FinTech here and here) and also plays a part in other sectors of the business world. Considering how important a presence it is, it shouldn’t be surprising to learn that technology is being brought in to revolutionize the industry—just as it did for FinTech.
Why Should I (And My Startup) Care About RegTech?
True, it took a while for regulation and FinTech to connect in any way and it is not yet fully decided how they are going to work together, but once you find yourself facing that issue you will be glad for the innovation RegTech is bringing to the table.
Dealing with regulations can be confusing, time consuming and stressful. Imagine how great it will be to have a system set in place to ensure you go through this process properly, from due diligence to fraud and risk checks and everything in between, a system that will reduce the costs of compliance and improve your know-your-customer programs. This is what RegTech can do to help your startup.
Take, for example, IdentityMind. This RegTech startup offers risk management solutions and anti-fraud services to eCommerce companies, helping them face the various issues that surface when working in the financial industry. Through its platforms, startups can ensure everything is above board. An incredibly important aspect to your continuing success.
Where And How Can RegTech Help My Startup?
The good thing about new technology is it can help you solve problems before you even have to face them. With the numerous RegTech startups coming into play, you can find solutions for almost any business problem.
KyoLAB, for example, is an up-and-coming startup aiming to be the leader in the mobile compliance field. If your startup uses mobile messaging apps for business communication and you want to be sure no one in your company makes compliance errors, KyoLAB’s platform will give you the technology to monitor and manage company devices. Considering the punishing fees regulators can hand down to financial companies found to be breaking rules (even accidentally), a tool that allows to supervise your staff and make sure they follow regulation is invaluable.
And if you’re aiming to market your services to an international market, Trulioo can help you manage the electronic identity verification process. Its Global Gateway service was designed to help businesses cope with Know Your Customer (KYC) regulations and the company states that it can verify 4 billion people in 60+ countries. Aiming to give an online identity to the billions of people currently lacking traditional ID, Trulioo is a fantastic example of the positive impact technology can have when it’s put to the proper use.
Running a startup is stressful and this is especially true when you’re working in a (relatively) new section of the market. Knowing that fellow startups can help you better run your company, allowing you to move from startup to full-fledged business while under regulation, is a great thing. Isn’t technology great?