International RegTech Companies Defining the $100-Billion-Dollar Industry

Demand for a better solution

Dealing with regulations and compliance has always been a costly and far-from-hassle-free experience for companies, especially for young startups in the financial services industry. Regulatory documents are 100+ page pamphlets requiring special skill and experience to comprehend and deal with. An example of skyrocketing expense that compliance requires is a $2.2 billion spent by London-based HSBC on regulation and compliance in the first nine months of 2015, up 33% YoY. Financial institutions’ expenses on compliance have increased as a percentage of total expenditure over time. Globally, ~$80 billion is spent on governance, risk and compliance, and the market is only expected to grow, reaching $120 billion in the next five years.

If compliance seems expensive, non-compliance will just knock out the common sense. Financial institutions in the US alone have paid more than $160 billion in fines for non-compliance. The main point is, the financial services industry is in a need for more cost-effective so ...

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