Top RegTech Players Leveraging AI for Product Offerings

Globally, banks have 10–15% of their staff dedicated to compliance on average. According to a study cited in the Cost of Compliance 2018 Report, on average, regulatory divergence (costs, risks, impacts) costs financial institutions 5–10% of their annual turnover. This consumes senior management’s time, as well as capital that could otherwise be focused on identifying emerging risks in the financial system. Ultimately, these costs are a barrier to international growth – the findings conservatively infer more than $780 billion annually in costs to the global economy.

These challenges have given rise to a new kind of player – Regulatory Technology (RegTech) startups. Essentially, RegTech refers to a set of companies and solutions that use innovative modern technologies to facilitate the delivery of regulatory requirements more efficiently and effectively compared to existing compliance capabilities. RegTech, as a segment, has been witnessing immense interest and activity in the recent past – be it due to the huge fines for non-compliance being imposed by regulators across the world or the reputational damage resulting from these fines – especially for the large, well-known banks, or the realization of the huge potential cost savings and other strategic benefits.

Let’s look at the numbers: there are 771 RegTech companies operating around the world across 7 segments:

RegTech players have an advantage here. How? Consider that these players need to sift through massive amounts of data – both internal and external – in order to engage in analysis. This is made simpler by leveraging the power of Artificial Intelligence (AI), which brings RegTech into AI territory, creating a good value proposition for them. In fact, AI is arguably among the top components for RegTech. So, in this week’s analysis, we take a look at some of the top RegTech players who are leveraging AI across their domain’s value chain.


Ayasdi provides AI-enabled AML, fraud prevention, and regulatory risk management solutions for financial services and other industries. It offers a unique AI + human approach to addressing AML issues. Its AI engine helps in refining existing rules and risk thresholds by grouping similar customers and customers-of-customers, while the validation from the human experts feeds into the system to further reduce false positives. This multi-faceted approach makes Ayasdi both efficient and effective in fraud prevention. The startup has raised $106.3 million in total funding.

Trulioo is a digital verification platform that conducts online KYC for both individuals and business entities through a single API. It offers identity verification services for businesses and organizations globally using government and private databases. It enables users to conduct verification by providing access to individuals and businesses in over 60 countries. The startup has raised $27.9 million in total funding.

Signzy uses AI and cryptography to enable banks to onboard in real time. Its primary offering is a real-time, bank-grade digital KYC that includes background verification and real-time document verification of business customers, as well as for video identity verification of retail customers. The startup has raised $4 million in total funding.

Jewel Paymentech uses AI to optimize customer onboarding, enabling traditional acquirers to onboard thousands of merchants per month instead of the hundreds they were previously onboarding. Jewel offers end-to-end KYC services, digitizing and automating the entire process for the bank. The startup has raised $1 million in total funding.

Authentication & Fraud Prevention

Feedzai provides an AI platform that offers an end-to-end fraud prevention solution for both online and offline payments. It can consolidate massive amounts of data into small, user-friendly data points for banks, among other reasons. The platform collects and analyzes data from multiple sources, and creates scored risk profiles that allow banks to make decisions instantly. The startup has raised $76.1 million in total funding.

DataVisor is a machine learning-powered fraud prevention platform that helps to tackle the complex issues of fraud, abuse, and money laundering. It leverages unsupervised machine learning to improve detection accuracy and prevent financial crimes. The startup has raised $54.5 million in total funding.

ComplyAdvantage uses AI to update its global database of high-risk companies and individuals to aid companies in fraud prevention. The platform offers the real-time capability to update the list of individuals on watch lists and even flag relatives & associates of these sanctioned individuals. In addition, ComplyAdvantage uses its technology to provide a flexible range of solutions and services through a user-friendly platform. The startup has raised $38.2million in total funding.

BehavioSec is an AI-based authentication platform that conducts continuous authentication of a user through passive behavioral biometrics-based profile creation. The algorithm can instantly verify someone based on their interactions with the device. Its flagship product BehavioSense continuously analyzes a user’s activities throughout a session. The startup has raised $25.7 million in total funding.

Fraugster has developed an artificial intelligence & behavioral analytics-powered solution to tackle payment frauds. It helps businesses predict fraudulent activities rather than react to them. Fraugster has developed a self-learning algorithm that learns and adapts from every transaction by mimicking the thought process of a human analyst. It has the scalability of a machine and can make decisions in as little as 15 milliseconds. The transaction data is combined with global, live merchant insights for predictive analysis. The startup has raised $19 million in total funding.


BigID has developed a data-driven, personal information (PI) protection, privacy, and governance platform. It enables enterprises to protect and manage the privacy of personal data by combining machine learning and identity intelligence. It helps enterprises to discover PI across structured, unstructured, and big data; uncover unknown & uncatalogued personal data, automate data flow mapping; track x-border data flows for all PI automatically; measure data and privacy risk, etc. The solution’s offerings include EU GDPR, PI/PII Discovery, Data Mapping, Data Subject Rights, Consent Management, PIA Automation, Breach Response, De-Identification, and Data Quality. The startup has raised $96.1 million in total funding.

Corlytics has created a taxonomy that enables automated risk impact assessment with measurable risk indicators. Corlytics, with the help of artificial intelligence and intelligent search technology based on its taxonomy, helps users easily find regulatory information as per their requirements. The startup has raised $15.65 million in total funding. delivers a comprehensive collection of regulatory intelligence content, insights, and trends for the financial services industry. It provides a proprietary Expert-in-the-Loop methodology that matches regulatory documents to a corresponding business function/topic. The topic classification helps users to identify the relevancy of the document and to check if the newly published document applies to their business. The financial topics include Bank Operations, BSA/AML, Commercial Lending, Consumer Lending, Credit, Crowdfunding, Cybersecurity, Debt Collection, Deposits, FCPA/ABAC, Insurance, Leasing, Lending, Mortgage Lending, Payday Lending, Payment, Privacy, Securities, and Trust. The startup has raised $7 million in total funding.

Regulatory Reporting

Hexanika’s advanced data management and reporting solutions help financial services firms adapt to changing environments. It leverages machine learning and big data competitive advantage for companies by guiding them to make crucial, data-driven decisions to improve business processes and performance. The startup has raised $0.15 million in total funding.


ConTXT offers an artificial intelligence-powered global reporting platform that enables its users to quickly automate, manage, and validate out-sourced regulatory reporting in a rapidly changing regulatory environment.

Risk Management

AlgoDynamix Limited is a risk analytics company that provides deep data portfolio risk solutions for asset managers. The deep data algorithms underpinning the AlgoDynamix analytics engine use primary data sources and proprietary unsupervised machine learning technology.

AIDA Technologies, the winner of MAS’ global FinTech accelerator, uses AI to manage risk and compliance in real time. Through its AI-driven analytics, AIDA provides solutions that solve the key challenge of augmenting human experts’ ability to make decisions based on massive amounts of heterogeneous information. AIDA Technologies has raised Series A funding from companies including Mastercard, Kuok Ventures, and SGInnovate.

Sigma Ratings offers AI-based financial risk assessment and management solutions. It enables business users to differentiate their businesses and determine counterparty risk through dynamically generated company-level risk ratings. The startup has raised $3.1 million in total funding.


Dathena is a data governance platform that leverages artificial intelligence and machine learning. Compared to the traditional static rule and keyword-based approaches, Dathena uses AI to diligently offer automated classification, categorization, and detection features, providing a 99.9% accuracy when only semi-supervised. What also makes Dathena unique is its ability to integrate well with other platforms, like existing governance and risk management plugins & solutions. The startup has closed an undisclosed round of funding.

CoVi Analytics is a SaaS-based platform that provides automated compliance services for banks & insurers. It uses AI to translate regulatory text into actual compliance activities seamlessly, and even produces appropriate regulatory reports. This end-to-end automation of compliance helps companies save both time and money.

Data Management

Primer is an AI-powered text summarization and contextualization software tool. It enables government agencies, financial institutions, and multinational companies to understand stores of text data using AI technology. The company's platform leverages AI/ML technology to ingest textual data (in multiple languages) and provide summaries of valuable information that is relevant to the user in terms of security. The startup has raised $54.7 million in total funding.

Quantexa is a big data & analytics startup that helps financial institutions and companies tackle the threats of financial crimes and adhere to the AML regulations. The innovative platform fuses real-time entity resolution with network analytics & artificial intelligence (AI) to analyze vast sets of unstructured data and provide actionable insights. It helps the firms to enrich their data assets and make data-driven decisions. The startup has raised $23.3 million in total funding.

Trunomi, Inc. operates a consent-based data-sharing platform to streamline the customer verification process for financial industry clients in the United States as well as globally. It enables customers to digitally control and share their personal data via a personal data store in compliance with data privacy regulations. The platform can be divided into an enterprise dashboard, customer data stores, and consent certification. The startup has raised $10.5 million in total funding.