RegTech

Understanding the RegTech Effect in Numbers

MEDICIGlobal Head of Content

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, regulatory divergence (costs, risks, impacts) costs financial institutions 5–10% of their annual turnover (on average). This consumes senior management 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 – more than $780 billion annually in costs to the global economy are conservatively inferred by the findings.

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Source: Cost of Compliance 2018 Report

Meanwhile, investments in regulatory software can lead to an ROI of 600% or even more with a payback period of fewer than three years.

There are 771 RegTech companies operating around the world across 7 segments:

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Use cases of RegTech solutions cover a broad range of applications: identity validation, risk management (which includes scenario modeling and forecasting), transaction monitoring & auditing systems, web due diligence & security, identity controls – these are just some of the cases where technology startups are actively filling the gaps.

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Source: The Future...

Elena Mesropyan

MEDICIGlobal Head of Content

Elena is a research professional with a background in social sciences and extensive experience in consumer behavior studies and marketing analytics. She is passionate about technologies enabling financial inclusion for underprivileged and vulnerable groups of the population around the world. Elena has been recognized as one of the Top 100 Women in FinTech 2018. Prior, she has been ranked in the Women in FinTech Powerlist 2017.