RegTech demand intensifies ‘as burden grows’

An overwhelming majority (85 per cent) of financial services professionals predict that demand for RegTech solutions will continue to grow until at least 2020, as the wave of new regulation a decade after the financial crisis shows no sign of abating.

Intertrust surveyed over 500 executives covering the asset management, corporate, capital markets and private wealth sectors, finding that 40 per cent said their company struggled with a skill shortage in RegTech and compliance.

The administrative services firm also found that private equity professionals predicted the highest levels of demand for RegTech solutions, with 97 per cent expecting to see a continued rise. This was followed by those operating in the capital markets (92 per cent) and corporate services (86 per cent) sectors.

Given the deficit in RegTech expertise and resource, most organisations are turning to external organisations for assistance. Respondents stated the best source of support is traditional administration services providers, combining regulatory experience with tech-based solutions (31 per cent). This is ahead of FinTech disruptors (23 per cent), law firms with regulatory experience (16 per cent), audit firms (14 per cent) and management consultancies (eight per cent).

Stephanie Miller, chief executive at Intertrust, said that following the recent onslaught of “game changing” tax and regulatory regimes such as GDPR, MiFID II and DAC 6, firms have become increasingly reliant on RegTech solutions.

“RegTech has evolved from being considered a very niche concept reserved for those big enough to support the investment to becoming a mainstream solution for every financial institution no matter the size or budget,” he stated.

“This development is mostly driven by the availability of third party providers providing cost effective expert solutions allowing access to the best RegTech without requiring the capital investment,” continued Miller. “In terms of industry evolution RegTech is still in its infancy but, as our research shows, we are beginning to see some trends in the emergence of certain preferred partners.”

    Share Story:

Recent Stories


Safeguarding economies: DNFBPs' role in AML and CTF compliance explained
Join FStech editor Jonathan Easton, NICE Actimize's Adam McLaughlin and Graham Mackenzie of the Law Society of Scotland as they look at the role Designated Non-Financial Businesses and Professions (DNFBPs) play in the financial sector, and the challenges they face in complying with anti-money laundering and counter-terrorist financing regulations.

Ransomware and beyond: Enhancing cyber threat awareness in the financial sector
Join FStech editor Jonathan Easton and Proofpoint cybersecurity strategist Matt Cooke as they discuss the findings of the State of the Phish 2023 report, diving into key topics such as awareness of cyber threats, the sophisticated techniques being used by criminals to target the financial sector, and how financial institutions can take a proactive approach to educating both their employees and their customers.

Click here to read the 2023 State of the Phish report from Proofpoint.

Cracking down on fraud
In this webinar a panel of expert speakers explored the ways in which high-volume PSPs and FinTechs are preventing fraud while providing a seamless customer experience.

Future of Planning, Budgeting, Forecasting, and Reporting
Sage Intacct is excited to present FSN The Modern Finance Forum’s “Future of Planning, Budgeting, Forecasting, and Reporting Global Survey 2022” results. With participation from 450 companies around the globe, the survey results highlight how organisations are developing their core financial processes by 2030.