When bureaucrats become involved with a particular industry, there is always a wealth of new changes to be implemented for the good of the company. There is often the proposal for a chief compliance officer, as well as a staff of his own choosing that will help to ensure that the rules are properly implemented and upheld. While it is a debatable fact as to whether additional rules make for better operations, one thing is for certain: additional rules means more money to be spent. This can often create adverse effects in terms of stock price. There is a new tech industry that is making waves amongst businesses seeking to adapt to avant-garde techniques called regulatory technology, or RegTech.
Regulatory technology seeks to use artificial intelligence, as well as blockchain technology to cut a company’s regulatory costs. According to Bain and Co., a global management consulting firm, as of last year, there were about 80 emerging RegTechs that were making there way into industries which rely heavily on compliance, such as insurance and banking. While the majority of the emerging RegTechs are just that, being barely out of the startup phase of operation, studies show that there is tremendous room for growth in the future, as banks around the world are spending in excess of $70 billion to ensure compliance across all business jurisdictions. This figure is expected to grow considerably over the next few years. Currently, through the use of legacy computers, the time and money spent can exceed two years, at a cost of $10 million, but through the use of regulatory technology, these costs can be cut considerably, equaling about $300,000 over the course of two months.
Jeff Yastine is the current editor of Total Wealth Insider, having joined Banyan Hill in 2015, taking on the role of editorial director. Mr. Yastine has over 20 years of experience as a stock market investor and financial journalist, and since joining the Banyarn Hill family has regularly contributed to Winning Investor Daily, as well as Sovereign Investor Daily. Throughout his career, he has garnered a wealth of knowledge regarding the stock market and general investing and has received much notable recognition due to his work as an anchor for the PBS Nightly Business Report from 1994 to 2010. During his time as an anchor, Mr. Yastine helped to predict the 2000 dot-com bubble, as well as the real estate crisis of the last decade.