Over the last few years, companies have been spending huge amounts of money to ensure that they comply with all the rules that govern their industries. This is especially so for companies operating in highly regulated sectors such as insurance and banking. However, according to Jeff Yastine, companies can only ensure total compliance while still keeping regulatory costs in check by investing in regulatory technology, or simply regtech. Regulatory technology involves the use of technology to lower a company’s spending on things to do with compliance. Such technology includes blockchain technology and artificial intelligence among others.
Since the regulatory environment is only bound to get stricter over time, regtech presents a great investment opportunity for investors. In the banking sector alone, annual regulatory costs average $70 billion, and this figure is expected to go up by about $50 billion by 2020 because of the additional rules being introduced in the industry. Another reason why regulatory technology is a great field to invest in is because more and more companies are joining these highly regulated sectors, meaning the spending on regtech will definitely go up. Because of the cost savings that regtech brings about, most companies will opt to enlist the services of regtech specialists as opposed to using traditional methods of ensuring compliance such as having a compliance department which can be quite costly to run.
About Jeff Yastine
Jeff Yastine is an expert when it comes to the financial markets. He works at Banyan Hill Publishing as editorial director. Before joining Banyan Hill Publishing, Jeff worked as a financial journalist for about 20 years. During that time, he also gained a lot of experience investing in the stock market. All this experience and expertise puts him in a good place to give people investment advice.
Jeff has written several articles and reports on various financial markets and these provide investors with a lot of insight into the markets. He has helped many companies and individuals make good investment decisions. His predictions are usually accurate and he is also an expert at doing market analysis after various events that affect the financial markets.
The fact that the laws governing businesses are getting tighter by the day cannot be disputed. And unless companies use regtech, their rising regulatory costs are bound to have a significant negative impact on their performance. Because of this rising demand for regtech, it provides a very lucrative investment opportunity.