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What is RegTech?

The word "RegTech" combines the words "Regulatory" and "Technology". As for example with the term "Fintech", it is about the use of innovative digital technology in the “new” area of financial services. RegTech focuses on the area of regulation/regulatory integrity. It targets the use of innovative digital technology for effective and efficient mapping, fulfillment, and documentation of regulatory and supervisory obligations. RegTech is currently predominantly applied in highly regulated industries such as finance and healthcare. However, it is becoming interesting for all regulated industries due to increasing complexity and digitalization.

RegTech companies rely on the latest technologies, such as automation, Big Data, data visualization, cloud services, blockchain, and artificial intelligence to manage regulatory compliance and achieve greater agility and speed in addressing regulatory requirements, thereby achieving significant cost reductions.

What is Automotive RegTech?

The automotive industry is one of the most regulated industries in the world. Original equipment manufacturers (OEMs), automotive suppliers (Tier 1, Tier 2, Tier 3, etc.) and aftermarket manufacturers (e.g. tires, lights, mirrors) must take into account a wide variety of vehicle and component regulations and laws when developing and launching products. These specific vehicle and component regulations have different scopes and systematics and vary from country to country. Against this background, product integrity with vehicle and component regulations and applicable laws is extremely relevant for companies in the automotive industry, but also a very complex task. In addition, the complexity of regulation is increasing sharply due to digitalization, electromobility and automated driving.

Product integrity also refers to the continuous verification that a product complies with technical regulations, current legislation, and recognized standards throughout its lifecycle. It is therefore necessary to integrate product integrity into product development processes right from the start. Automotive RegTech is designed to support this regulatory management from the very beginning by developing new solutions using the latest technologies, such as automation, big data, data visualization, cloud services, blockchain and artificial intelligence. A completely new level of transparency and speed can be achieved in the management of regulatory requirements, manual processes can be reduced and thus costs can be drastically reduced with additional regulatory security.

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