The more things change the more the regulators are playing catch up!
So we have already looked at FinTech as a relatively new phrase that has been used to describe a variety of businesses that are disrupting the payments market place and other areas of our financial lives. We briefly covered Bitcoin (the payment preference for Ransomware) and Blockchain which leads very nicely on to our second Tech phrase, RegTech.
What is RegTech?
RegTech refers to the introduction of software often, but not necessarily connected to developments in the financial sector, that helps manage compliance with any legal or regulatory structures or policies. It will be fundamental in areas like Anti-Money Laundering, so will have to work hand in hand with Blockchain transactions to identify the source of the Bitcoin in someone’s wallet, to make sure that the funds haven’t been laundered.
There are different areas that businesses can focus on when developing systems to manage compliance. Last autumn the Financial Times highlighted projects looking at such diverse potential applications as Analysing Data on capital and liquidity for use in reports to regulators; Scenario analysis and forecasting; Customer Identity and, perhaps in response to all the furore surrounding this in recent years… monitoring the conduct of Fund Managers choice of investments.
In the same article, it was reported that “The UK’s Financial Conduct Authority has plans to increase direct collaboration with RegTech companies to bring together market participants to work on shared challenges, and act as a catalyst for change”
Both FinTech and RegTech are species of technological advancement that have the potential to make the way we pay for everyday things, as well as our larger financial commitments such as mortgages, loans, pensions and investments easier to control, more consistently managed and properly scrutinised.
Can Cooden Tax Consulting help you with your RegTech or FinTech project?
We are already working with several businesses in these high-tech areas and have the expertise to help you identify the technological challenges that you may have been working through to deliver your own RegTech or FinTech project.
It is trying to overcome these technological challenges that are the cornerstone to accessing R&D Tax Credits to reward your business for your innovation.
In order to start considering a claim, you have to be far less tech savvy, you can pick up the phone on call Simon on 01424 225345 or use the contact form on the website and drop us a quick note and we’ll give you a call back.