Regulations. They serve to keep businesses safe, and consumers safer, but unfortunately, that protection comes with quite a bit of overhead. With costs to ensure compliance becoming a major burden for businesses of every type, something needs to change, and according to Jeff Yastine, regulatory technology may be the answer. Yastine has been the editorial director for Total Wealth Insider since 2015 but has been interacting with the financial sector for over 20 years. As an investor, writer, and reporter, he has been at the center of many worldwide financial events.
Regtech; A Bubble, or the Future?
Regulatory technology, commonly called “regtech,” is a relatively new contender, on the cutting edge of both business and technology. The stated goal of the majority of regtech enterprises is that of reducing compliance costs via sophisticated blockchain-based software. With aid from artificial intelligence systems, it may be something worthwhile for investors to look at.
However, the cutting-edge nature of regtech means that the sector is split between roughly 100 smaller, decentralized enterprises. Very few of the names in the field are recognizable, with businesses such as OnRule or Taxometry trying to make waves in the early days of the field. Currently, the primary users of this technology are banks and insurance companies, but it’s projected that the vast majority of heavily regulated businesses will be using them in the near future. Unfortunately, with the sheer number of regtech providers out there, investors may find it a challenge to figure out which ones are the cream of the crop, and which will fall flat. Learn more at Seeking Alpha about Jess Yastine
A major theme I expect to emerge this year are competitors pairing off to better compete against Amazon, including some of the following companies…#Mergers #ACQUISITIONS #stocks #StockMarket #investing #BanyanHill $amzn $ebay $erj $kr $gww https://t.co/RFc7T2xudP
— Jeff Yastine (@Jeff_Y_Guru) January 2, 2018
Why Regtech Is Making Waves
The simple answer is money. With regulations forcing larger financial institutions to cough up massive amounts of cash for compliance, and regtech firms offering that service for a thirty, or even forty times lower cost, it’s no surprise that they’re so eager to hop onto regtech.
But business isn’t the only field in which regtech has made a splash. Recently, government agencies have begun research on regtech companies, and have even opened communication with a number of them. With considerations on integrating regtech specialists into the process of creating and implementing regulations, regtech seems poised to play a significant part in the coming years.
A Sound Investment in Regtech
With officials from America, Britain, and Singapore making proposals to cooperate with regtech companies, and suggestions for allowing these firms to register as banks in the US, the future of regtech is looking more assured than ever. While every regtech company won’t make it big, this is an industry that doesn’t appear to be going away anytime soon. Visit:https://stocktwits.com/jeffyastine