Focus | Financial services innovation | Regulatory compliance | Regulatory supervision |
Target Audience | Financial Institutions and End customers. Eg: Bank customers, Banks, Brokerage firms, Investment management companies, and Venture capital firms. | Financial Institutions. Eg: Banks, Brokerage firms, Investment management companies, Venture capital firms, Finance companies, Microfinance Institutions. | Regulatory Authorities. Eg: Central banks, Security Regulators, Consumer protection agencies, and Data protection authorities. |
Examples | Mobile banking apps, online lending platforms, robo-advisors. | KYC/AML compliance tools, transaction monitoring software. | Data analytics platforms for regulators, automated risk assessment tools. |
Function | Develops new financial products and services, improves access to financial services. | Helps financial institutions comply with regulations, reduces compliance costs, automates manual tasks. | Enables regulators to monitor financial institutions, identify and manage risks, improve supervisory efficiency. |
Benefits | Increased convenience, efficiency, and competition in financial services. | Streamlines compliance processes minimizes regulatory risk, improves data accuracy. | Promotes financial stability, protects consumers, fosters innovation in financial services. |
Relationship | FinTech companies utilize RegTech solutions to ensure compliance. | RegTech and SupTech work together to support a secure and efficient FinTech ecosystem. | SupTech leverages data generated by FinTech activities for better risk assessment. |