How Technological Innovations in Financial Industry are changing the Landscape for Top RegTech Companies

A rapid spike in the cases of data breaches in the BFSI space has compelled organizations to adhere to regulations. In this respect, financial regulators are devising innovative solutions to keep fraudsters at bay. One of these solutions is RegTech, which stands for Regulatory Technology and entails deploying technology to manage the reporting, compliance, and monitoring in the financial industry.

Moreover, both large and small companies are investing in this technology for the security of their confidential business information. In May 2023, under the Business Research and Innovation Initiative, the Australian government offered USD 5 million to small and medium enterprises to support regtech. Thus, governments across the globe are also encouraging the imposition of regtech solutions, which is driving the market growth.

As per a report by Fortune Business Insights™, the market for regtech reached USD 12.82 billion in 2023 and is set to reach USD 85.92 billion by 2032 with a CAGR of 23.6% during the 2024-2032 forecast period. The top regtech companies in the market are focusing on providing innovative solutions for industry-specific requirements. These companies are opting for strategic collaborations and partnership deals to boost their market knowledge. They are also strategically acquiring small companies to enhance their market position.

Fortune Business Insights™ Profiles Top 10 Players/Companies in the Regtech Market

1. ACTICO GmbH

ACTICO GmbH is a German intelligent automation and digital decision-making software provider. Its solutions merge artificial intelligence and human expertise with automation technology to cater to regulatory needs, enhance digital customer engagement, optimize operations, reduce fraud, and manage risks. In October 2023, the company unveiled its compliance solutions, which include the new ACTICO Customer Screening. It has been developed to match customer data with PEP (Politically Exposed Persons), adverse media lists, and sanctions.

2. Ascent Technologies Inc.

Ascent Technologies Inc. is a regtech firm that aids clients in the automation and streamlining of their regulatory compliance processes. The IntaaS (Intelligence-as-a-Service) platform deploys specialized automation and vertical AI technologies to bring a transformation in the regulations and documents of a regulatory body into actionable insights, which are then sent to clients online. In February 2024, the company acquired Waymark to deploy its obligations management technology with Waymark's advanced horizon scanning tools. Eventually, the combined firm offers comprehensive regulatory coverage of the U.K., EU, and the U.S.

3. Deloitte Touche Tohmatsu Limited

Deloitte Touche Tohmatsu Limited is a global provider of audit and assurance, risk advisory, tax, consulting, financial advisory, and associated services, operating in more than 150 nations across the globe. Its regtech methodology is inclusive of the incorporation of new technologies with massive market expertise to handle regulatory issues, making it one of the top regtech companies operating globally. In May 2024, Corlytics, a regulatory intelligence publisher that provides automated policy compliance and content, announced the acquisition of a digital regtech platform from Deloitte UK. This move helped Corlytics in extending its coverage in the U.S. and Europe.

4. IBM Corporation

IBM Corporation is a global information technology firm that is indulged in providing integrated solutions deploying information technology and knowledge of business processes. Its different segments include Global Financing, Global Business Services, Systems, Global Technology Services, and Cloud & Cognitive Software. In March 2024, the company inked a deal with EY to launch a sustainability reporting managed services solution. This initiative emphasizes aiding firms to address the varying and expanding environmental, Social, and Governance (ESG) disclosure requirements by providing comprehensive data analysis, assurance-ready reporting capabilities, and analysis.

5. Jumio Corporation

Jumio Corporation provides identity verification solutions, which include selfie-based authentication, 3D liveness detection systems, and face-based biometrics. It also provides online identity verification and mobile payment services, such as validation for mobile and web transactions and card and ID scanning. In November 2023, it teamed up with Suits Me, a quickly growing FinTech firm, for the transformation of the process to help increase access to banking services for underbanked customers in the U.K.

6. Chainalysis Inc.

Chainalysis Inc. is present as a blockchain data platform that offers data, services, software, and research to government agencies, cybersecurity and insurance companies, and exchanges across the globe. It aids financial institutions, government agencies, and cryptocurrency businesses in dealing confidently with cryptocurrency. In March 2024, company inked a deal with Sumsub, a leading full-cycle verification provider. This move strives to secure the storage of data, automate digital asset transaction monitoring, and improve regulatory compliance for client companies.

7. OneTrust, LLC

OneTrust, LLC, based in Georgia, U.S., offers security and privacy software and organizations can adhere to security regulations, data privacy, and governance across sectors and jurisdictions using its platform. It is also present in Melbourne, Bengaluru, London, San Francisco, New York, Hong Kong, Munich, and Bangkok. In May 2024, the firm announced the launch of new platform improvements and capabilities to help organizations responsibly deploy, secure, and discover data.

8. MetricStream Inc.

MetricStream Inc. offers governance, quality, risk, and compliance management solutions. It also provides a compliance management software solution, electronic document management software, enterprise compliance platforms, and a risk management system. The company also offers services for validation, training, hosting, support, and implementation. In May 2024, the firm announced a strategic partnership with Expleo, a technology, consulting, and engineering service provider. This deal emphasizes assisting financial institutions in enhancing and simplifying GRC processes, governing risks in a more efficient manner, running with greater integrity, and minimizing the complexity of navigating the world of compliance.

9. Broadridge Financial Solutions, Inc.

Broadridge Financial Solutions, Inc. offers technology and investor communications solutions to the financial services sector. It caters to different industries, such as capital markets, wealth management, utility, asset management, healthcare, insurance, financial, telecommunications, and consumer finance sectors. In May 2024, the regtech solutions provider declared the acquisition of Kyndryl, the Securities Industry Services (SIS) business of IT infrastructure services provider, for an unrevealed sum.

10. Accuity Inc.

Accuity Inc., which is LexisNexis Risk Solution’s part, provides payment routing and screening data software, including online subscription-based software and data, counterparty KYC solutions, and transaction screening for the financial services industry. In February 2021, Accuity and LexisNexis Risk Solutions unveiled a merger agreement for the development of a financial crime compliance solutions company. This merger aimed to deploy data and analytics to offer more comprehensive payment and risk management solutions.

How is the Deployment of Emerging Technologies Changing the Outlook of Regtech Space?

The top regtech companies are making investments in the incorporation of advanced technologies to enhance global business expansion and operational efficiency. However, these companies need to adhere to different nation-specific regulations to operate across multiple nations. Hence, the providers of solutions are making investments in offering efficient and innovative applications of integration technologies. For example, blockchain technology is witnessing traction in the industry owing to its ability to provide secure and transport record-keeping capabilities. Likewise, AI is offering different use-case applications that are assisting companies in providing condition-specific solutions. Thus, the deployment of these cutting-edge technologies is set to pave the way for market growth.