The RegTech Momentum in Financial Services

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The RegTech Momentum in Financial Services

© Deloitte

Can you imagine that there are 155 relevant regulatory changes for global Financial Service organizations every day? This is more than 50'000 every year. MiFID II is roughly 17'000 pages long… Make the math yourself. How many pages do you have to read, analyze, and also implement into your operation and adapt your existing business processes. Sometimes the new regulations threaten the business models of established players such as Private Bankers, Wealth Managers, Asset Managers and many more.

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A 100 Billion US-$ Opportunity

The only way to master the ever growing regulations is to find ways to automate the analysis, the understanding of the impact, the change in business processes and the reporting. The only solution is to use technology to master that challenge!

Regtech (an amalgam of “regulatory technology”) remains a hot topic among banks and insurances globally and their consultants seeking to adopt a more pro-active approach to compliance.

You will need all existing compliance resources to enable the culture change within your organization. The human factor is the biggest risk in compliance today. That’s why the regulators are going after executive management. Conduct Risk is the new paradigm of controlling firm’s ethics by regulators. To limit the conduct risks you have to change the behavior and culture and that starts at the top.

Compliance just became personal!

Annual compliance cost for Financial Service companies is USD 70 bn and growing at a rate of 14% yoy. The RegTech market is a USD 100 Billion opportunity by 2020.

Who are the RegTech players?

There are multiple sources identifying today’s regtech players. All sources have one thing in common: the regtech market is predominantly a market of new players, of start-ups. Established software vendors have not yet identified regtech as a major target market. The exception is IBM (Watson).

If you are interested in the newest and relevant regtech companies then the guide from Deloitte is a good start. If you want to see a global list of regtech startups the Jan-Maarten Mulder’s list with 120 companies is a good source too.


The RegTech Momentum in Financial Services was originally published in RegTech Forum on Medium, where people are continuing the conversation by highlighting and responding to this story.

Source: medium posts

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