RegTech Insights

What is RegTech?

August 30, 2023
min read

Sid Yenamandra

Sid Yenamandra is the Founder and CEO of Surge Ventures, an esteemed entrepreneur and executive with a remarkable track record in the cybersecurity and technology sectors. With successful exits from three startups, Sid has left a lasting impact on the industry. Notably, he founded and led Entreda, a top provider of cybersecurity compliance software for financial services firms, which was acquired by K1 Capital and RegTech Unicorn Smarsh. Sid's leadership also included the acquisition of Privva, a leading provider of third-party vendor risk management software. His expertise in driving growth and innovation is further exemplified by his key roles at Plato Networks and PacketFX, both of which were acquired by prominent companies in the tech industry. With dual B.S. degrees in Electrical Engineering and Computer Science from UC Berkeley and a wealth of experience, Sid is widely recognized for his authoritative knowledge and ability to develop groundbreaking solutions in the cybersecurity landscape.

Wealth management firms are increasingly adopting regulation technology (Regtech) to help them meet compliance requirements. While this is excellent news for the industry, you must research before partnering with a Regtech vendor. In this blog post, we'll look at the benefits of using Regtech software for wealth management firms and what you should consider when choosing the right solution for your business.

Regulatory technology (Regtech) is rapidly growing.

Regtech is the use of software to automate regulatory compliance. It's rapidly growing because it helps firms meet their compliance requirements, which can be time-consuming and expensive. Regtech is not just a buzzword or trend.

Regtech is an industry that has been around for decades, but it has only recently started gaining momentum due to advancements in technology and changing regulations globally.

Regulatory technology (Regtech) refers to technologies used by businesses and organizations to help them comply with financial regulations, such as Know Your Customer (KYC), Anti Money Laundering (AML), or Countering Financing of Terrorism (CFT), while providing services like payments processing, and risk management.

What is Regtech software?

Regtech software is a technology that helps wealth management firms meet regulatory requirements across multiple jurisdictions. Further, Regtech automates compliance processes and helps firms handle client information responsibly, protecting client data and preventing breaches of sensitive information.

Regtech can be used to automate the following processes:

  • Client onboarding - Regtech can help automate determining whether new clients meet all KYC (know your customer) requirements before accepting an investment from them. This ensures that all required documents are collected at this stage, so there is no need for additional paperwork later on in the relationship with a client or investor.
  • Monitoring transactions - Regtech can monitor transactions as well as any suspicious activity on behalf of your firm, so you have peace of mind knowing that everything is being monitored 24/7.
  • Reporting information - Besides monitoring transactions, Regtech may also report relevant data back into your system, allowing you access whenever needed without having anyone manually enter anything into spreadsheets or databases first.

Regtech helps wealth management firms meet compliance.

Regtech solutions help firms ensure they are handling client information responsibly, protecting client data, and preventing breaches of sensitive information.

Regtech can also be used with cloud computing to provide security against cyberattacks by hackers who want to steal your confidential data.

Regtech solutions can help you:

  • Meet compliance requirements across different jurisdictions.
  • Ensure that customer data is stored securely and only accessed by authorized staff members who need access to it (e.g., when someone calls in for customer service).
  • Prevent unauthorized access by employees through solid passwords or biometric verification.

Surge Ventures’ Role in Regtech

Our team at Surge Ventures grew from the knowledge behind regulation and compliance software in the financial services and wealth management industries.

We hope this post has helped you to understand the benefits of Regtech software and how it can help your wealth management firm meet compliance. If you’re interested in learning more about how we can help, please get in touch with us today!

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