Monday, 27 august 2018 | Redacción CEU
The neologisms with the suffix "-tech" are part of a new growing trend. New words like “insurtech”, “wealthtech”, “regtech” or “lawtech” are spreading strongly through the business world. Professionals and media are using them increasingly to explain the effect that the progress in technology has on the business and financial environment. However, being aware of all the news that digitalization brings about and understanding what the arrival of new disruptive alternatives means can sometimes be difficult. In order to clear up the doubts and delimit what the terms rewriting the old business glossary are, we have decided to make a brief tour through the main “tech” concepts.
The arrival of new digital alternatives that improve or modify the way of proceeding in the different industries in the business and financial fields has led to the borrowing of a list of words that have as a suffix the particle "-tech". Some of them, as in the case of the word “fintech”, are already popular in the corporate culture and have even been featured directly or indirectly in some of our recent articles:
- The effects of fintech emergence
- Neobanks and challenger banks, the alternatives to traditional banking
That is the reason why this article has not gone in depth in the meaning of the “fintech” concept. It does not mean that this definition is less relevant, we have simply decided to leave space for other terms which are less known and studied.
The new “tech” glossary
Digitization is constantly redefining and reinventing the work environment where professionals work. The accelerated adoption of the business world of new technological solutions has resulted in the proliferation of numerous concepts that explain this new reality. They are the following:
Proptech (property + technology):
After suffering a severe crisis between 2008 and 2013, the Spanish real estate sector is beginning to recover its good state of health, albeit in a timid but constant way. In part, this recovery is due to the benefits which are provided by the new technological solutions that are being applied to the sector: the sale of buildings the use smart contracts and on the blockchain, the use of different types of crowdfunding, the development of “smart” houses by means of The Internet of Things (IoT), the commercialization of properties thanks to big data and geolocation, the use of artificial intelligence in the planning of buildings, the use of augmented and virtual reality in the sales of flats or the boost of new models like rent-sharing. These proposals usually originate from innovative startups, however, large companies are increasingly interested in betting on these technologies and promoting their development.
Regtech (regulation +technology)
There is an aspect which has not gone unnoticed on our blog: the growing concern of the business and financial environment for the improvement of regulatory compliance. The new technological proposals which are emerging are also moving in this direction. The result of this is what we now know as “regtech”. The goal of this discipline is to guarantee the compliance with standards within the framework of the company based on technological solutions that, among other things, allow the process automation. In this way, the companies that are using it offer a greater transparency and more control of risks, as well as favor that compliance is more exhaustive.