The regulatory landscape has seen big changes within the last years. Therefore creating more opportunities for compliance gaps in financial services.
As a result, we see financial firms increasingly turning to new regulatory technology to fill compliance gaps, save on the costs of compliance, get ahead of requirements before deadlines, and detect enterprise risk before the regulators do.
Concern over pending regulations is increasing and 2018 is the year for regulatory implementation. You can find the key dates below:
• 3 January 2018: Markets in Financial Instruments Directive II (MiFID II)
• 3 January 2018: The Markets in Financial Instruments Regulation (MIFIR)
• 12 January 2018: Revised Payment Services Directive (PSD2)
• 25 May 2018: General Data Protection Regulation (GDPR)
VC backed RegTech in FinTech equity funding since 2013 has reached to $1.8 billion across 176 deals according to CBInsights latest report.
Banks investment in RegTech is still in early stages but some banks such as Santander, Barclays, and Goldman Sachs are already investing in RegTech startups. Banks have made investments in products & services that range from identification and background checking software to blockchain and trade monitoring.
Investors tend to back compliance solutions they need. Banks co-invested to meet research unbundling requirements of MiFID II & MIFIR, at the same time being their primary customers.
According to CBInsights report most of the RegTech companies are springing up from Europe. Below you can find 60+ top RegTech companies in financial services to watch. Among others some Finceler8 customers.
“Regtech poses significant opportunities for both participants and regulators. I suspect we are in the ‘early innings’ of this space, but believe that it is imperative for all involved stakeholders to do their part in understanding emerging technologies and think creatively about incorporating such technologies.” Says J. Christopher Giancarlo CFTC Chair
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