RegTech is currently exploding across all industries, from cryptocurrency and blockchain to conservation, and architecture is no different. According to a comprehensive report published last year, the global RegTech market was valued at approximately $5.31 billion in 2019 and is expected to reach $33.1 billion in the next four years.
Regulation technology is attractive to industry professionals because it can help businesses comply with industry regulations more efficiently and affordably. It can also combat fraudulent activities like money laundering and data breaches, reducing the risk to a company’s compliance department.
Automation And Architecture
The architecture industry has been moving towards increasing levels of automation for decades. According to Arch Daily, this started as far back as 1883 with the invention of the thermostat.
By the 1980s, automated control systems were run entirely by digital computers. Today, new processes of digitalization, as well as the advent of artificial intelligence, are taking automation in architecture to new heights. These developments make processes more accurate and efficient and open up a world of possibilities for innovation.
For example, automation allowed the geodesic dome industry to explode, making them easier to design and build. According to The Spaces, geodesic domes are among the most popular rentals. Not only are these structures gorgeous, but their efficiency and lack of waste appeal to the planet-conscious traveler. Dome tents offer a unique glamping experience, allowing vacationers to be close to nature without sacrificing luxury.
Unfortunately, automation in architecture also opens the door to cybersecurity breaches and other types of digital fraud. Like any company, an architecture firm is vulnerable to having its digital systems hacked or misused.
According to Investopedia, underground online marketplaces are on the increase. This situation makes it harder for traditional compliance teams to learn about fraudulent activities such as online money laundering.
The Role Of RegTech In Architecture
It is necessary to use automation tools to combat digital security breaches i an automated world. RegTech tools can monitor all of an architecture firm’s transactions, from purchasing materials to employee salaries to customer payments. Any fraudulent activities or other issues will be immediately discovered by doing so.
According to a study by Rusk O’Brien Gido & Partners LLC, most transactions performed by architecture firms involved the sale of non-controlling interests. For example, when a partner or shareholder enters or exits the business, there is a transaction of the value of an ownership interest. These transactions illustrate the importance of Fintech to the architecture industry. In any company supporting such a movement of capital, monitoring technology is essential.
RegTech can improve key processes through automation, such as employee surveillance, compliance data management, fraud prevention, and audit trail capabilities. These are all critical components of running a successful architecture business.
In addition, according to the CFA Institute, RegTech filters on deep learning and artificial intelligence could provide almost real-time insights, which identify problems in advance rather than alert compliance teams when they have already occurred. If those in the architecture industry want to enjoy the enhanced creativity, innovation, and efficiency that automation provides, RegTech will be essential.