Nordigen: Regtech - What's Open Banking Got To Do With It?

Editorial Calendar Industry voices Thought Leadership Nordigen: Regtech – What’s Open Banking Got To Do With It? Here in this guest-authored article forThe Fintech Times,RolandsMestersdiscusses the rise of regtech and how open banking is helping compliance technology stretch its wings into a new era. Mesters is the co-founder and CEO ofNordigen, a Latvian account data analytics provider that assists banks, lenders and fintechs in leveraging open banking.

With industry knowledge and first-hand experience with open banking, here Mesters analyses how open banking is powering a new, more powerful generation of regtech. Outside of the scope of finance industry professionals, regtech is unlikely to be a commonly used term. Despite this, the practice itself is imperative to the financial industry, implemented for the successful and safe running of processes and maintaining the protection of businesses and consumers.

Short for regulation technology, regtech refers to a community of tech firms that create solutions to assist companies in complying with regulatory requirements in cost-efficient ways through automation. These solutions are created through the use of cloud computing, along with findings procured through big data collection and analysis. The rise of regtech The main goals of regtech are to facilitate financial companies’ compliance with the myriad of ever-evolving regulations.

Staying on top of the full set of rules that companies within finance need to follow can be difficult, especially when their offices span across multiple countries and therefore have to comply with all local requirements. Compliance, in this case, can be expensive, time and resource-intensive, necessitating a more automated solution that underpins regtech. Common use cases for regulation technology include the finance sector, cryptocurrency platforms and iGaming websites.

It is now viewed as one of thefastest-growingphenomena in the fintech world. While regtech seems like a new addition, a version of regulation technology has actually