International banks pay $70 billion a year to make sure they follow every law and comply with every regulation in every country in which they do business. That’s according to Let’s Talk Payments, a financial technology website. And that expense is going to rise to $120 billion within three years. That’s an extraordinary and onerous burden on the world’s financial system. Fortunately, some companies are finding ways to reduce that problem by assuming responsibility for keeping up with all the legal changes themselves, then providing that as a service to banks at a cost far lower than the banks can afford to do it themselves.
The demand for this regulatory finance, or regtech, is so high, financial journalist Jeff Yastine writes about for the readers of his newsletter Total Wealth Insider.
Banks in the United States must pay $10 million or so to comply with requirements they know and track the activity of their customers, to thwart money laundering and fraudulent activity. In the European Union, that cost is $1 billion. Yet the regtech companies can accomplish it for $300,000. That’s because they specialize in their niches, and use the latest technologies, including Artificial Intelligence, blockchain and advanced software. Read more about Jeff Yastine at investmentu.com to know more.
Financial regulators have noticed the existence of these new regtech companies, and are welcoming them as partners to keep banks compliant with the regulations. The Office of the Controller of the Currency (OCC) suggested giving some appropriate regtech companies access to special national bank charter. This would make them authority like a bank. After all, although it’s the job of regulators to look for violations, they don’t want trouble. The regtech companies make their jobs easier as well.
Jeff Yastine worked as a senior correspondent and anchor for PBS Nightly Business Report from 1994 through 2010. That gave him a ring side seat for all the important business events that happened during that period, including the Dot Com Boom, the Tech Wreck and the Financial Crisis. He interviewed many business leaders and expert investors, learning the secrets to their success. He was nominated for the 2007 Business Emmy for stories on how America’s infrastructure of highways and bridges is going downhill due to lack of funding. He reported on the Deepwater Horizon oil spill of 2010 and visited Cuba for a story on how foreign investment in that communist country has affected its economy. He reported on the handover of the Panama Canal in 1999. Check:https://www.stockgumshoe.com/tag/jeff-yastine/
Jeff Yastine, the editor of Total Wealth Insider, is one of the most optimistic people about the future of the technology. In his recent article, he was quick to remind his readers that technology is on the rise and change is inevitable. He challenged his readers to think how disruptive technology has often changed the way businesses operate. Technology is an unstoppable force, and it is important if people embrace it. He said that with the advancement of technology, there come new rules for business.
Regtech according to Jeff Yastine is a great investment opportunity which most people are yet to discover. It is the use of advanced tools artificial intelligence and blockchain technology. Such technology can be employed by organizations for the purposes of decreasing regulatory costs. The global management consulting company recently acknowledged over 80 companies being referred to as “emerging regtechs.” There are lots of indications that the services and products of these upcoming companies are slowly gaining entry into highly regulated sectors of the economy such as insurance companies and banks.
It is also important to note that most of these companies are still privately owned and their names are still unpopular in the tech-business industry. The good news is that there are high chances of growth for these companies regardless of whether they are private or publicly owned hence presenting investors with an opportunity to pump in more money and reap the benefits.
The Price of Fulfilling Regulations
Fulfilling regulations always comes with costs. Financial institutions often require an individual to sign some forms whenever they open a new bank account or seek to change information in their existing account (s). The main reason for such regulations is to curb money laundering and corrupt activities. The cost of fulfilling all these regulations and at the same time maintaining compliance can cost a company up to $10, million. However, with regtech technology, such costs can be reduced down to about $300,000.
Jeff Yastine is currently the editor of Total Wealth Insider. He has also worked with Banyan Hill Publishing in 2015 where he served as an editorial director. Jeff Yastine has over two decades experience in stock market investment as well as financial journalism. Since he joined Total Wealth Insider, he has written many inspiring stories and attracted a large following of readers. His experience, especially in the tech world and business industry, gives him a clear insight into a plethora of current and future trends.
Jeff Yastine has been kind enough to share with us a great investment opportunity for 2018. It is known that government regulators are starting to look into businesses more and more. It is costing a lot of money for businesses to comply with government regulations. In many countries, it is costing billions of dollars. In the European Union in particular, it is costing a lot of money. There are many things that go into being compliant. You have to hire a legal team that can look into your dealings and make sure that they are compliant with all the rules. In addition, there is a lot of paperwork that needs to be filed. Doing all that paperwork can cost a lot of money as well.
That is why industries such as regtech are such great opportunities for investors. Regtech refers to technology that helps companies deal with regulations. There are around one hundred small companies out there right now that do this. They serve banks and insurers. However, this industry has shown great potential. There have been a number of Initial Public Offerings. Read this article at stockgumshoe.com to know more about Jess Yastine
The reason why this is such a great investment is that these companies can do so much for businesses all over the world. They can help these businesses save a lot of money on their compliance needs, not to mention time and effort. As more and more companies become aware of these regtech firms, they will start using them and the market will continue to go up.
In addition, some governments are already talking with some regtech companies to see how they can integrate their technology into the compliance process. This would make it easier for everyone. These companies can help banks out with things such as confirming the identity of their clients and so much more.
In short, these firms have the ability to save companies millions of dollars each year. As such, it is certain to be of value to companies. Therefore, you should invest in them right now. This way, you will be able to grab onto stocks in these companies right at the beginning.
Jeff Yastine is the editor of Total Wealth Insider, which is put out by Banyan Hill Publishing. He has over two decades of experience in investing. He is also an experienced financial journalist.
Read more on Talk Markets:http://www.talkmarkets.com/contributor/Jeff-Yastine/
Paul Mampilly is the founder of Profits unlimited, a newsletter under the umbrella of Banyan Hill Publishing. Mampilly joined Banyan Hill in 2016. He recently wrote a new article for the newsletter claiming he had knowledge of what could be the greatest medical breakthrough in history. Many think this is just a ploy from Mampilly in order to draw in more subscribers. So far though, he has been adamant in saying he’s identified the company leading the precision medicine revolution. Could there be any truth in what the former hedge fund manager is saying.
According to Mampilly, a company with an estimated value of $1.5 billion in getting ready to take the health care market by storm. Though he only provided teaser information he did disclose that it is involved in precision medicine. What is precision medicine? Well in layman’s terms think of having the ability to customize medicine in a way to fit a person’s unique genetic makeup. It may sound a bit like science fiction but in truth there are many companies involved with precision medicine. Precision medicine can not only treat illnesses it can also prevent them which is even more important.
The company Mampilly is supporting so strongly is Utah-based Myriad Genetis (MYGN). The company is a hilltop facility consisting of some of the top scientific minds and biotech pioneers in the industry. It is an industry leader when it comes to molecular diagnostic DNA sequencing. while the company’s stock has been doing well as of late it will be interesting to see if it makes the kind of impact Mampilly is predicting someday.
About Paul Mampilly
Before Mampilly founded Profits Unlimited he was thriving on Wall Street as an investor. During this time he also held high ranking positions at Deutsche Bank and ING. In 2006 he became the hedge fund manager of Kinetics Asset Management. At the time the firm was worth $6 billion. With Mampilly at the helm its assets quadrupled.
Paul left Wall Street when he realized he had a passion for helping others become financially free. He is still an investor he just no longer makes money for the ultra rich.
Learn More: ideamensch.com/paul-mampilly/