I can confidently say that it's not just a trendy term, and I'll explain why it isn’t below. Let’s start with the main question:
What is RegTech actually?
In short, Regulatory Technology (RegTech) involves using technology to convert data into information that holds significance for regulators and the businesses they oversee. Various tools and platforms can be used for this purpose, such as machine learning, natural language processing, cloud computing, rule engines, and robotic process automation.
The origin of RegTech stems from the substantial tightening of laws and regulations following the financial crisis a few years ago, which initially focused on banks and the financial sector. Regulations concerning customer identity (Know Your Customer) and the prevention of money laundering became extremely complex, leading to a significant increase in the workload for verification.
These still remain the market segments where most RegTech solution providers offer their services. An example of such a service is the creation of an account on a cryptocurrency platform. The entire verification process involves uploading a passport, sending a selfie, and making a 1-cent payment, after which the software determines the correctness of the identity without human intervention.
What does RegTech look like in the world of Trade Compliance?
For Pincvision, the focus of easing customer burdens in terms of laws and regulations lies less in the financial sector but in Trade Compliance. Key components include Regulatory Reporting, Risk Management, and more recently, Transaction Monitoring for our clients. The challenges for Pincvision include several factors:
- Dealing with large volumes of data, including invoices, goods volumes, and properties of goods such as origin and composition.
- Handling data from clients in various formats, both structured and unstructured, such as PDF, Excel, XML, and emails.
- Emphasizing speed due to deadlines for timely submission of declarations to authorities, with a growing shift toward real-time reporting.
- Navigating constant changes in regulations from various countries where we handle declarations, such as VAT or environmental obligations. Even export and import regulations are subject to frequent changes.
This growth and data complexity can no longer be managed solely by hiring more colleagues. By deploying intelligent technologies capable of handling large volumes, diverse structures, conducting smart analyses, and providing good performance and security, this process can be streamlined and go for 'high risk of human mistake' to low-risk. A perfect example of RegTech!
Moreover, as regulations are continuously evolving, new rules must be easily incorporable, and existing ones adaptable.
Over the past years, Pincvision has consistently invested in advancing its digital business technology platform. By progressively adding components and services, we've managed to support our data analysts and domain specialists while increasingly replacing manual routine work with clever solutions. The technology platform now includes:
- a standardized Compliance Data model
- a Business Intelligence platform for dashboards and reports
- a high-performance In-Memory database for analytics
- a service for Intelligent document processing
- an elaborate Business Rule Engine, and
- a data mapping & transformation service for swift format switching.
This equips us to handle changing regulations and to develop new services by combining and invoking these components.
What Does the Future Hold?
For the near future, we see that many of our component suppliers claim that artificial intelligence is being incorporated more into the tools and platforms. Whether it's integration with ChatGPT or AI-driven software development, increasingly more new AI features are becoming available. Ultimately, the question remains about the added value of AI and other forms of RegTech for our clients, employees, or process optimization. This remains the most exciting challenge of our field, to explore this together with the business and IT.
So, I can confidently say that Pincvision is indeed a genuine RegTech company.
If you want to learn more about our solutions, take you can read more about our services by clicking here or here.
In the upcomming weeks we will share more insight in to what RegTech really means for Pincvision. If you don't want to miss any updates on this you can follow us on Linkedin and subscribe to our newsletter.
- Pincvision Headquarter
- Terborgseweg 102
- 7005 BC Doetinchem
- The Netherlands
- Pincvision UK Ltd.
- Unit 5 Lancaster Way
- SG18 8YL London
- United Kingdom