Regtech, short for regulatory technology, is a category of software solutions that helps its business customers to manage and de-risk compliance with the regulatory obligations of their respective industries. By its nature, regtech seeks first to understand and then to simplify and manage the highly complex laws written to regulate industry. While the right seeks to free business to grow and the left seeks to protect citizens and consumers, a good regtech solution supports both sides with technology that ensures compliance with the law while minimizing the resources necessary to do so.
Consider regulatory control over the financial services industry as a prime example from modern history. Speculative investment soared during the roaring twenties while production waned and unemployment rose. Over the decade, the stock market became increasingly over-valued and consumers took on more and more debt as banks turned a blind eye to obvious risk and over-leveraged cash