Jeff Yastine says that many companies are starting to have a chief compliance officer. Of course, having an officer like that to regulate everything and make sure that everyone complies with every little rule can do bad things for a company. It can cause it to start losing its efficiency and be unable to be as productive as they used to be. However, if it is related to regulatory tech, then Jeff Yastine says that it is a great thing. Check out youtube to know more.
Jeff Yastine calls regulatory tech the new technology industry. Basically, what it refers to is the practice of setting rules in place that will help cut costs by using various new technological methods. You can use software and artificial intelligence to help cut costs. Investing in this technology can help you save a lot of money, so it is a great investment.
There are already around eighty companies that are using regtech compliance rules. They are investing in new ways that technology can help cut costs.
— Jeff Yastine (@Jeff_Y_Guru) November 16, 2017
Businesses such as banks are already spending around seventy million dollars for their compliance rules. It is a good idea for them to spend some more money in regtech compliance. This will help ensure that they will be able to cut costs. Businesses in the financial industry can benefit tremendously from regtech compliance rules.
Let us take an example. This would be the forms that banks require you to sign and fill out when you open a new account. Many of these forms relate to federal rules. However, it takes a lot of money to make sure that everything is up to date and that everything complies with the latest rules. This can take two years and cost ten million dollars. However, by using regtech and technology, it can take just three months and cost just three hundred thousand dollars. That is a huge saving potential.
Regtech can reduce the costs of compliance. In Europe, it is even worse. The European Union has a lot of rules that banks have to comply with, and it can cost them up to one billion dollars to keep up with all of the rules. The OCC and the Bank of England have already proposed plans to include regtech as part of their business.
Jeff Yastine is an investor with twenty years of experience in the stock market. He is a journalist with Banyan Hill Publishing.