The surfacing of cutting-edge internet technology within a globalized world is giving rise to financial scams, and that too to a greater extent. In recent years, many prominent investors have lost millions of dollars to deception, negligence, security privation, and mismanagement. 

Knowing the fact mentioned above makes it even crucial for budding entrepreneurs and established financial institutions to attend upcoming tech events like the Internet 2.0 Conference, to name one. Such conferences provide an open window for the tech-enthusiasts and business heads to stay ahead of the curve on beating technological scams. The best part about fighting financial scams is that we have the much-needed technology that can be sufficient to mitigate at least the impacts of scams caused on the institution– RegTech. 

Eager to learn more about the technology? Keep reading to find out exciting facts!

RegTech: An Explanation

Regulatory Technology, or RegTech, is all about using Artificial Intelligence, machine learning techniques, and other computer-driven tools to comply with the regulations and become the sword and shield against scams within a bank or any said sector of a given financial institution. 

As discussed in many IT conferences of 2022, by automating compliance processes, the majority of which are still manual, biased, and expensive, such technology lessens the burden of cost and complexity. It strengthens the capacities of regulators and the regulated. 

RegTech & The Value It Brings To Data Analytics

RegTech has real-time capabilities to analyze data, which helps change any financial organization’s compliance efforts. RegTech can now evaluate globally, utilizing various techniques, including scenario analysis, regulatory ecosystem analysis, and real-time user engagement analysis. As a result, businesses may proactively identify risks, concerns, and opportunities.

To help financial organizations keep one step ahead of fraudsters, RegTech influences sophisticated transaction monitoring and surveillance capabilities.

It accomplishes this by greatly enhancing:

  • Trade surveillance using blockchain technology enables businesses to transact directly, seamlessly, and securely.
  • Communication monitoring using ML and behavioral analytics enables general improvements in the AML sector. Anti-Money Laundering (AML) through intelligent applications. 
  • Anti-Transaction Fraud through a single-risk platform for end-to-end fraud prevention.

As reckoned by the IT conferences of 2022, RegTech even adds value to digital currencies and helps financial institutions to avoid scams. It helps develop a complete compliance risk management system that enables reputation scoring based on numerous data variables for precise risk assessment and decision-making.

Moreover, it assists in keeping an eye out for potential online threat sources like ransomware, peer group analysis, historical transaction deviation, fraudulent Initial Coin Offerings (ICO), stolen tokens, global currency exchanges, ATMs, addresses for money laundering, dark market sites, and criminal addresses.

The Bottom LineFinTech has taken a while to take off in the financial institutions of several emerging nations and high-risk jurisdictions, despite the advances in software innovation. The innovation and technology that we would picture as regulatory and supervisory technology in the coming future are already here, and all we need to do is embrace them to their full potential. Follow up on tech conferences of 2022, such as the Internet 2.0 Conference, if you wish to gather more information on the financial scam and RegTech being the sword to combat it.