FinTech, RegTech, SupTech – what is behind?
25. November 2022, by iconicchain
FinTech, RegTech and SupTech are trendy buzzwords nowadays in the financial industry, but have you ever wondered what exactly is behind these names? To understand their meaning, we must look back to the beginning of the global financial crisis in 2007. The crisis triggered a significant reform of the financial regulatory system and pointed out the weaknesses of the financial supervision. The whole financial services industry underwent a major transformation. Technological innovation based new business models, products, and services appeared on the market resulting in greater competition, better consumer choice and satisfaction, cost savings and improved risk management. Collectively these form the landscape of FinTech, RegTech and SupTech.
FinTech short for: ¨Financial Technology¨, refers to financial service provider companies using new innovative technologies to compete with the old traditional methods. It refers to a wide range of financial activities, that can be executed without the assistance of a person, such as money transfers or managing your investments. FinTech assists banks in connecting with customers through technology.
Key FinTech technologies include but not limited to API, AI, ML, DLT and Smart Contract.
Few examples of financial products and services using FinTech: Cryptocurrencies, digital currencies, international payments, personal or business loans.
RegTech (¨Regulatory Technology¨) has been defined as a sub-set of FinTech, covers solutions that assist heavily regulated industries, such as financial services or healthcare in meeting regulatory standards and focuses on the digitalization of manual reporting and compliance processes.
SupTech (¨Supervisory Technology¨) provides technological solutions to regulatory authorities to improve efficiency through automation and to manage regulatory compliance. Distributed Ledger Technologies (DLT), machine learning, artificial intelligence, automated rule analysis are some of the cutting edge technologies recently brought to the market, including by us.
Finland is at the forefront of solutions for all three categories. Helsinki Fintech Farm’s Finnish Fintech Landscape is listing many of the Finnish FinTech companies (200+) by fields, such as Payments, Blockchain, Financial Software, Data & Analytics, Wealth Management, etc (see below chart). We are proud to be the leading supplier of RegTech and SupTech solutions from Finland, being listed among the 20 biggest FinTech startups in Finland both in 2021 and 2022.