Singapore-based RegTech Start-up RegTank Secures $2M in seed funding

Singapore-based RegTech solution RegTank announced that it secured a $2M in funding from tech investors SuperChain Capital and IPB Capital. This is one of the largest seed funding rounds for RegTech companies in Asia. Founded by seasoned industry experts in 2020, RegTank will be using the funding to enhance its SaaS platform and deepen research into its patent-pending intelligent AML risk engine. 

With the fast-changing regulatory landscape for Fintechs and financial institutions, RegTank provides an innovative risk-based approach (RBA) compliance solution integrating Know Your Customer (KYC) and Know Your Transactions (KYT) to provide a 360° risk profile by leveraging a smart risk assessment engine. KYC and KYT are combined into a single consolidated platform to offer the ultimate AML/CFT compliance solution. For an overview analysis of the individual’s risk level, a 360-degree risk profile of the clients are generated tracking risk across different transactions and over time. Lastly, firms can customize the smart risk assessment engine according to their business rules and enable automated workflow such as scoring and re-screening.  

Building Asia’s Regtech infrastructure   

Regtech helps with the management of regulatory processes within the financial industry. As compliance gets more complicated and complex due to the ever-changing regulatory landscape, there has been a surging demand for Regtech technologies. Quoting from the   New RegTech Adoption Survey 2019 by RegTech firm Cube, 75% of financial institutions admit that their current processes and technology are hindering efforts to manage regulatory change effectively. For companies dealing with Virtual Assets, compliance teams often struggle with lean resources and fragmented systems aside looming regulatory pressures and security breaches. Therefore, one of the reasons for the rise of regtech adoption is because these innovative technologies can essentially replace the existing manual compliance process of many companies’ at a more efficient rate and even at a lower cost. 

With the Global RegTech industry expected to hit USD$55.28B by 2025, RegTank is poised to capture a slice of the market share through developing cutting edge technologies. The future and sustainability of regtech firms are said to lie in data optimization. Given how fast the regulatory industry changes with new technologies and innovation, Regtech firms will need to be nimble and flexible to be ready to adopt breakthrough technologies to keep pace with such demands. Besides, Regtech companies will need to be proactive to ensure that their solution is up-to-date. It is said that Regtech firms that leverage on data analytics, AI and machine learning will have an advantage as analysis of the large volume of data to react to market changes remain and will be critical especially in the regulatory space. 

“We believe that an integrated solution with an intelligent risk system can help clients improve efficiency and increase agility to comply with newer regulations. With this funding, we can double down on our efforts to achieve our mission of making Compliance easy.” – Megan Li, CEO of RegTank. RegTank is currently in the alpha stage with a couple of trial clients and will be officially launching beta soon into the market.   

Reference 

With the fast-changing regulatory landscape for Fintechs and financial institutions, RegTank provides a risk-based approach (RBA) compliance solution integrating KYC and KYT to provide a 360° risk profile by leveraging on a patent-pending smart risk assessment engine. 

KYC and KYT are combined into a single consolidated platform to offer the ultimate AML/CFT compliance solution. For an overview analysis of the individual’s risk level, a 360-degree risk profile with risk score tagged to every client is incorporated into RegTank’s solution. Lastly, using the risk-based approach, different processes are implemented after clients are categorized into different risk levels to optimize efficiency. 

Regtech helps with the management of regulatory processes within the financial industry. As compliance gets more complicated and complex due to the ever-changing regulatory landscape, there has been a surging demand for regtech technologies. Quoting from a survey done on financial institutions, 75% of them admit that their current processes and technology are hindering efforts to manage regulatory change effectively.   Therefore, one of the reasons for regtech adoption is because these innovative technologies can essentially replace the existing manual compliance process of many companies’ at a more efficient rate and even at a lower cost. 

According to Deloitte, the 5 main categories of Regtech are 

  1. Compliance 
  2. Identity Management and Control
  3. Risk Management
  4. Regulatory Reporting 
  5. Transaction Monitoring 

Currently, more companies are concentrated in the compliance landscape. The future and sustainability of regtech firms are said to lie in data optimization. Given how fast the regulatory industry changes with new technologies and innovation, regtech firms will need to be nimble and flexible to be ready to adopt cutting edge technologies to keep pace with such demands. Besides, Regtech companies will need to be proactive to ensure that their solution is up-to-date. It is said that Regtech firms that leverage on data analytics, AI and machine learning will have an advantage as analysis of the large volume of data to react to market changes remain and will be critical especially in the regulatory space.

Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Guardian Talks journalist was involved in the writing and production of this article.