By FINTECH Books Contributor, Michelle Katics Follow: @michellekatics Two fundamental conditions are required for a strong financial system:  trust and identity.  RegTech offers an opportunity to strengthen and scale both.  In this chapter we explore the solutions, potential social benefits, and what might be done to enable success. Trust in the financial sector may have been the biggest casualty of the global financial crisis. This was followed by the ‘perfect storm’ on trust: hacking incidents, pyramid schemes, trading scandals, and compensation structures inviting moral hazard. Topics worth exploring are examples such as: Real-time monitoring and behavior analysis providing actionable metrics. How does this allow us to manage and quantify success? Does this rebuild the trust of shareholders, regulators and other stakeholders? Stronger fraud detection. Does this lead to more positive customer experiences and rebuild their trust? Identity for many unbanked is an insurmountable hurdle to financial inclusion. A paradigm change which empowers individual identity ownership is a game changer. The individual lays claim to their identity with their biometrics,rather than reliance on government record keeping or a bureaucrat’s confirmation of their identity. One of the original steps in this direction was the Aadhaar initiative in India using biometrics. What is the social impact thus far on financial inclusion? Now we see rapid advancement of digital identity (ShoCard, Tradle, Trunomi) — what is the social impact thus far? We also see blockhain identity solutions (Blockstack). What is the scalability and potential? How many people globally might benefit from such solutions?  How might a digital identity-driven world look?  Can we imagine a world where consumers have strong trust in the sector?