Regulatory technology, is a subclass of Fintech in the context of compliance benefiting the finance industry. Usually this solutions utilice the cloud through software-as-a-Service (SaaS).

Regtech is focused on the digitalization of manual reporting and compliance processes, for example, in the context of Know your customer (KYC) requirements. Regtech offers significant cost savings to the financial services industry and regulators.

Regtech transformative potential will only be fully captured by a new and different regulatory framework situated at the nexus of data and digital identity. The recent and proactive stance of regulators (for instance with the development of regulatory sandboxes) may potentially combine to facilite a transition from one regulatory model to another.