The total value of money laundering is between 2% and 5% of global GDP, amounting to $800 billion to $2,000 billion per year. This increasing regulatory burden is a minefield for financial services companies. A stripped-down service and higher consumer fees are accurate, but this is not sustainable. That must break this cycle of more regulation and more costs.
Regtech is an umbrella term for various technologies for financial services companies. It helps organizations comply with current laws and regulations to reduce the cost of financial crime, among other things. Today, we published our “Top Trends in Regtech” report in this context. Thanks to contributions from Mambu, Palo Alto, Protiviti, and Sentinels, we were able to highlight five key trends in Regtech:
- Transaction monitoring
- Customer due diligence
- Regulatory reporting
- Cloud Security
These developments are essential for future-oriented financial institutions. Compliance affects everyone, so it is not the job of the compliance department to chase after the other departments. If companies start to see compliance as a business enabler, instead of a block on the leg, they are 1-0 up.
The market for Regtech is proliferating. Worldwide the size is estimated at around $6 billion, which is expected to grow to $33 billion in 2025. Much of that growth will take place in the Netherlands, as the Netherlands is among the top three fintech hubs in Europe, along with the United Kingdom and Lithuania. With more than 400 tech start-ups in the financial domain, the Netherlands is a fertile ground for fintech companies.
Hyarchis Connect 2022 will be themed ‘Regulatory Compliance and Open Finance: a balancing act.’ Are you interested in Regtech reducing the regulatory burden on the financial sector? Register for our webinar right away. Can’t attend live? No problem, because we’ll send you the recording.