Experts Predict RegTech Will Overtake FinTech as the Financial Industry Powerhouse

Regulatory technology expert NorthRow predicts that the RegTech industry will overtake FinTech as the financial industry powerhouse.

Oxfordshire, United Kingdom - August 8, 2018 / / —

Since the global financial crisis that took place between 2007 and 2008, banks and financial firms have been facing scrutiny over a lack of regulatory compliance. The market collapse was caused by financial institutions working together with clients that failed to follow the law or operated under unstable financial practices.

Compliance failure is a pressing issue that could result in hefty fines. Since the 2007-2008 financial crisis, a total of $321 billion was imposed on various financial institutions all over the world. As a result, banks now spend upwards of $1 billion annually on client compliance checks and 15% of staff time and resources are now dedicated to risk management and compliance. In wake of the compliance rush, financial firms are now looking for cost-effective solutions to handle regulatory checks, paving the way for a regulatory technology industry.

RegTech consists of software that is capable of verifying the identities of individuals and corporate entities. It performs these checks by validating ID documents and performing background checks, and it is operated all through a single application programming interface (API). Implementing RegTech allows financial institutions to automate the compliance process and introduces a cheaper and faster solution to risk management.

CEO of RegTech firm Northrow, Adrian Black, credits the success of RegTech on its automated tools and advanced software:

“In recent years, increased automation, as well as improvements in the range and quality of solutions, has allowed RegTech to offer real value in terms of time and cost savings. The increased adoption of open API-based technology, married to ongoing regulation changes, has meant that RegTech firms have become important players in the financial sector. They offer the capacity to ease the regulatory burden on banks and other institutions by improving operational efficiencies, while also ensuring security and compliance standards are upheld.”

Thanks to over $80 billion being spent annually on risk assessment and compliance, RegTech has the potential to overtake FinTech investment by over 150%. It is estimated that RegTech will experience a meteoric rise to $120 billion within just four years.

NorthRow (formerly Contengo) is a regulatory technology company that offers a web-based platform for reducing compliance risk. NorthRow achieves this by performing automated KYC and AML checks on people, companies & ID documents, while also helping clients optimize business processes and implement custom solutions. For more information, please refer to the contact information below.

Press Contact: James Speyer
Phone: 0115 896 2348
Address: 30 Upper High Street, Thame, Oxfordshire, OX9 3EZ
Web: https://www.northrow.com
Email: [email protected]

Contact Info:
Name: James Speyer
Organization: Northrow
Address: 30 Upper High Street, Thame, Oxfordshire, OX9 3EZ
Phone: 0115 896 2348

For more information, please visit https://www.northrow.com

Source:

Release ID: 391018