I read an interesting article recently in FinRegAlert: Fintech, Regtech and the Role of Compliance. In it the author points out the tension between the drive to adopt new financial technologies and complexity added by new regulatory requirements. The article is a good summary of the information published by Thomson Reuteurs which can be dowloaded here. However, I do think it misses a key point in that the new regulatory requirements are an EXPONENTIAL increase in complexity which will never be fully addressed by incremental regtech.
Exponential problems are difficult if not impossible to get under control and trying to solve these problems wtih linear solutions (more storage, processors or deploying more people etc.) is a fool's errand that can add unbounded cost. The solution is exponential regtech!
Here at Trust Exchange we are working to solve these problems by bringing exponential technologies to the sharp edge of these challenges. For instance, we are using crowdsourcing to solve the data collection problem inherent in most regulatory requirements. Like Facebook collect information from the edge, compile it and present it in clear and actionable ways.
If you wold like to learn more, CONTACT US for more information.