Behind the key word RegTech hides an enormous potential of innovative solutions for the digitalization of the regulatory sector, and not only in finance.
The term RegTech is an amalgamation of the two terms “regulatory” and “technology”. Based on the already widely used term FinTech, which describes the convergence of financial service providers and technology, the term RegTechrefers to the specific area of “Regulation & Compliance”. The term RegTech originated in the banking sector. At the latest since the financial crisis in 2008 and the accompanying high fines, which in some cases threatened the existence of banks and financial service providers, the sector has been more concerned with the technical implementation of compliance regulations.
The flood of new regulatory initiatives every day brings with it the need to apply lessons learned in the financial industry to other highly regulated industries. Small and medium-sized enterprises in particular are suffering from the increasing regulatory pressure, the growing complexity combined with sharply rising expenses, and all this without any specialized staff resources. Unfortunately, the often praised pragmatism of small and medium-sized companies does not lead to the desired results. According to Warren Buffet, the same applies here: It often takes a generation of entrepreneurs to build a reputation, only to ruin it in a matter of minutes.
RegTech-companies (also called RegTechs) are essentially concerned with ensuring legal compliance. In this sense, DHC Business Solutions is a RegTech company from the outset: Specialized in technological solutions for the “regulated environment”, i.e. for industries such as chemicals, pharmaceuticals, medical technology, biotechnology, cosmetics and food and beverages, but also for the energy and utilities sector.
“For highly regulated industries, our RegTech solution “DHC VISION” is made for the job,” says Dr. Wolfgang Kraemer, Managing Director of DHC Business Solutions, “because the advantages that arise from the use of innovative technologies, such as data visualization of compliance processes in combination with Big Data and AI, are wide-ranging.” In addition to increased transparency and the resulting improvement in the quality of work, increased efficiency through faster and more secure data exchange are decisive points that speak in favor of the use of regulatory technology. The technology can be used within the overall IT architecture to support efficient, regulated management. The automation of compliance-based business processes also leads to enormous cost reductions, another not insignificant factor. In addition, such RegTech solutions are very easy to integrate into existing structures and easy to configure.