Abstract
Purpose
The conflict between the burden from regulations and the desire to introduce new offerings to the market is a concern for both researchers and business managers alike. Over the last 10 years significant increases in resources required to comply with regulations have been observed. The use of technology solutions to manage complex regulations (a.k.a. “Regtech”) is emerging as a potential solution to the compliance demand. This paper poses the question, “Which support do current Regtech solutions offer?”.
Design/methodology/approach
This study analyzed a global set of 550 providers to understand what support Regtech solutions provide.
Findings
The analysis shows how regulatory compliance work is supported as well as specific examples of firms providing support and which regulations are covered. Results highlight that the main focus in the current Regtech industry is on supporting internal and operations tasks rather than external and analytical activities.
Practical implications
Recommendations to business managers are to combine regulatory support with a clear strategic vision, carefully plan integration scenarios, and to look for the support of broader regulatory management rather than individual functions or specific regulations.
Social implications
If RegTech providers, financial services firms, regulators, and researchers look towards a future where the balance of proactive regulatory management and efficient compliance is achieved, there are substantial benefits for customers of the industry. The result will be increased transparency and quality in all industries.
Originality/value
The result from this study is one of the first specific illustrations of the nature of “RegTech,” which can serve as a basis for further research into aspects of technology and capabilities.