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RegTech is composed of the words 'regulatory' and 'technology'. It is a collective term for the application of modern technologies, to get the increasing regulation in the banking- and financial sector under control both from an IT and a legal standpoint.
Introduction
Attitude of the country towards RegTech-services
The attitude towards RegTech is positive. However, general, and well-known concerns can be cited, such as those against digitisation and the use of artificial intelligence, both of which are key drivers in the RegTech market.
Moreover, the success of RegTech solutions heavily depends on the structuring of banks operating models and their affinity to change current models which seems to tilt towards transformation of new technologies.
Legal affairs
Obligations and requirements to provide RegTech-services
RegTechs are not subject to an authorisation requirement themselves, because their business model consists of helping in handling the compliance with the growing regulation in the banking area.
Additional comments regarding the legal situation for RegTech-services or what RegTech’s must be aware of in this business area
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Economic conditions
Market size for RegTech-services and biggest companies in this business area
The size of the market for RegTech services and the leading companies in the field in Costa Rica is still evolving and may be difficult to determine without specific data. RegTech, an emerging field that uses technology to help financial institutions comply with regulations, is being explored by some technology and consulting firms in the country. However, due to the newness of the field and the lack of public data, the market size and top companies in this area may not be easily identifiable at this time.
Additional comments regarding the economic situation for RegTech-services or what RegTech’s must be aware of in this business area
N/A