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Data for today’s episode is provided by Mercator Advisory Group’s report – Trends in Global Regulations: Corporate Banking and Payments
- As of 2017, the cost of regulatory compliance is equal to 14.3% of IT budgets on average
- That’s a 30% increase in compliance costs over the last 6 years
- The regtech market’s compound annual growth rate is 25% through 2023, growing to revenues of $7.2 billion
- Solution categories in the regtech market include:
- Data management
- Reporting
- AML/KYC
- Risk management
- Records management
- Change management
- Governance
- More than $9 billion was invested in regtech firms between 2014 & 2018
- In 2018 alone, $4.5 billion was invested in reg tech firms
- The bulk of the regtech investments have been in the AML/KYC space
About the report
The open banking era is upon us, but banking basics still need to be executed as financial institutions weave through the disruption.
Most financial institutions do an exceptional job of managing often overwhelming levels of compliance requirements, and must continually navigate change, especially as new tech presents both challenges and opportunities.