There are always two sides of a coin, bureaucratic style of leadership is not an exception. Once a particular industry is bureaucratized, various changes are bound to take effect with immediacy. Many positions are introduced to ensure strict supervision and chain of command. The positivity or negativity of the effects of this kind of changes are debatable depending on a number of underlying factors. One certain fact is these changes definitely incur more costs on the company, which can have adverse effects on the company’s finances. However, if you have to introduce this style of leadership, there is a way a company can counter these effects. It is known as regulatory technology– ‘Regtech.’
Regulatory technology commonly known as ‘Regtech,’ is a technique of employing tools including but not limited to; block chain technology, artificial intelligence in a bid to cut down the costs that come with bureaucratic changes in a company. Although many companies are still not familiar with this technology and the terms involved, it is an investment opportunity that is worth a giving a chance.
Many companies in various sectors are struggling in one way or another to boost their profits and reach their targets. In the wake of the stiff competition in the marketplace, the use of technology is almost inevitable. This is where regtech comes in handy to help boost your financial performance.
Last year, 80 emerging companies that proved to need regtech in order to sell their products and services were identified by Bain &Co. They include companies from the insurance and banking industry among many others. Some of the companies have already started using the technology and have already started reaping the benefits therein and are set to scale even greater heights.
Due to a lot of bureaucracy introduced in the banking sector, global banks are required to pay a compliance fee of around $70 million, an amount which is likely to rise over the years due to increased jurisdictions. It is therefore paramount that the banks come up with ways to cut costs as much as possible and maximize its profits as much as possible. Regtech provides you with all the ways to cut the costs that come with the increased financial regulations to ensure that you remain afloat and make profits.
Jeff Yastine is a well-accomplished journalist who kicked off his career in 2015 at Banyan Hill Publishing where he served as an editorial editor. Having vast knowledge in stock markets and matters finance, he joined the Total Wealth Insider where he is an editor till date.