Regtech Study: European Landscape
Regtech in financial services – a combination of Regulation and Technology used to describe the application of new technologies to the world of regulation and compliance – has emerged as a sub-sector of the technology industry in the last three years. This was fostered by the parallel development of Big Data analytics and Artificial Intelligence which found a natural application given the vast amounts of data produced by banks.
With its mature and prominent financial services industry and strict regulatory regime, Europe has laid the foundations for many highly innovative companies seeking to exploit the latest advances in technology to help banks solve their regulatory challenges.
Whilst Regtech companies are increasingly coming under the radar of financial institutions and investors alike, relatively few studies have been dedicated to this nascent sector. This paper aims to fill this gap by taking a closer look at the various players that make up the European Regtech ecosystem and how they position themselves to tackle the regulatory needs of banks.
Sia Partners and AEC Fintech benchmarked 80 European Regtech companies with a view to uncover the trends that are driving these companies.
The purpose of this study is to provide an in-depth analysis of the European Regtech sector and give a comprehensive overview of emerging business initiatives that leverage new technologies to help banks cope with their regulatory obligations.