In this interview with Fabiola Pellegrini, partner at Klecha & Co., we talk about how technological innovation has made the financial system safer, more transparent and efficient, requiring the adoption of regulatory technologies to stay up-to-date. RegTech aims to meet this need by enabling banks and insurance companies to comply with new rules set by states and the European Union.
The value of the RegTech industry is growing strongly, from $6.5 billion in 2020 to $10.2 billion in 2023, with forecasts that it will reach $55 billion in 2025. This development is driven by increased regulation and penalties for non-compliance.
RegTech includes technology solutions that make it easier to adapt to changing regulations. Regulations have had a significant impact on the financial sector, with an exponential increase in regulations in recent years. RegTech technologies, such as digital identity, digital signature and biometric recognition, help ensure regulatory compliance. In addition, RegTech plays an important role in the area of privacy, helping companies to manage large amounts of data in compliance with the GDPR.
Banks and insurance companies are among the sectors most affected by RegTech, as they undergo numerous regulatory updates. In the future, the intensity of regulatory updates will not diminish, and regulatory technology will become increasingly necessary to manage regulatory change efficiently and economically.
Moreover, technological innovation continues to generate new regulations, so RegTech will be increasingly indispensable for businesses.
Read the full article on Huffington Post Website (in italian)