Making Regulation Machine Readable – RegTech


By FINTECH Books Contributor, Ralf Huber
Follow: @ApiaxCOM

For decades, lawyers such as myself have been mastering the art of interpreting regulation for financial services, but in a rapidly digitising world, regulatory interpretation must also become binary. The next wave of RegTech solutions is just round the corner.

Having spent the last 15 years practising law in the financial industry, I have developed an expertise in dealing with the dazzling complexity of regulation. I spent time explaining complex policies to bank employees, helping IT grapple with the implementation of legal requirements, and handling executive orders to exit markets due to the rising costs of regulation. Recently we have seen Robo Advisors transforming traditionally human-centric investment advisory activities into a fully digital client experience.

Much progress has been made to automate these processes, but offering international services remains a challenge as each country has its own complex regulatory requirements. To offer scalable solutions across multiple markets, regulatory advice as provided by legal and compliance experts today, must also be digitized. I believe an automated solution, a “digital compliance officer”, is the key to enabling digital services such as Robo Advisors. Therefore, by applying machine-learning techniques, we today cluster regulatory requirements country by country and transform them into digital rule-sets.

These rule-sets are always up-to-date and verified, allow for a transparent audit trail on past and current rules, and provide our clients with a sophisticated regulatory risk management framework. To ensure consistency, applications such as eBanking, CRM and Robo Advisors communicate via APIs with our solution.

While the digital compliance officer for Robo Advisors has become reality, we are integrating more financial activities into our platform. I am certain the financial industry is just the beginning, with further highly regulated industries still waiting for their very own RegTech revolution.

If you would like to learn more about FinTech please look at our video courses at