Regtech

If anyone out there is thinking that the word “regtech” sounds like it could be a portmanteau of “reggae” and “technician,” we guess it could be…but it’s not. And really, what would a reggae technician do, anyway?

In reality, “regtech” is a combination of “regulatory” and “technology,” and it basically refers to software that businesses use to help them stay in compliance with various finance laws and regulations; it also helps prevent illegal or unethical stuff from taking place. The word can also describe a business that provides regulatory technology, i.e., we could refer to Silky Smooth Software, LLC as a regtech company.

So...what are we talking about here? We’re talking about software or other tech processes that monitor financial transactions, compile data reports, verify user identities, and issue alerts if any shady or problematic behavior is detected. Regtech is popular because it’s fast, accurate, and usually pretty cost-efficient. And even though it hasn’t been around for all that long, it’s gaining steam in a world where crimes like identity theft, credit card scams, and money laundering have all gone digital.