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RegTech Statistics

In today’s technology-driven economy, the need for RegTech businesses has never been higher. Regulatory Technology, or RegTech, has seen substantial growth in recent years due to the rising cost of compliance, and the need for faster transactions. The global RegTech market size is expected to grow USD 7.6 billion in 2021 to USD 19.5 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 20.8% during the forecast period.

RegTech saw an explosion of investment in 2021, with investments raising almost $19 billion globally. Compared to the $7.8 billion raised in 2020, the market saw a 244% increase of investments in one year.

The United States represents the largest portion of contributions to RegTech, claiming 78% of deals to startups. The North American market is expected to hold the largest market share of RegTech in the upcoming year. As we’re seeing significant changes being made to this FinTech sector, here are some important trends to follow for this year:

RegTech Market TrendsRegTech Trends

The growing interest for more RegTech solutions has become an expanding demand for digital financial services as they see an increase of criminal activity. Big data, cloud computing, and machine learning algorithms are being used to heavily regulate businesses through computerized risk management procedures.

Rise of ESG

The growing concern of global climate change has made Environmental, Social, and Governance (ESG) related finance a trending topic. As more governments are taking action to shift financial flows to more sustainable economic activities, RegTech will play a crucial role in supporting the transition. However, this will take time. Financial institutions and FinTech companies are adapting to reporting these procedures in preparation for more innovative regulatory technologies and streamline their process.

KYC and Financial Crime

As more individuals are conducting their financial business online, Knowing Your Customer (KYC) will be imperative for companies to avoid issues of financial crime. KYC has become a trend across the financial services market – RegTech is no different. Financial institutions will need to access real-time accurate data to ensure their customer’s potential risk to threats. CMO of PassFort Christine Bailey has said:

“Data procured from external sources and integrated with your KYC system will offer the opportunity to collate, assess and corroborate the digital footprint of existing and potential customers in real time, creating a 360-degree view.”

The transition to automated KYC services will be a big trend throughout the year.

Crypto Communications

There has been an increased focus on cryptocurrency regulation as there have been threats from tokens with unregistered securities, leaving prices of crypto open to manipulation. The company BitMEX paid a $100 million for failing to comply with US anti-money laundering laws. With a growing scale of fines and regulation within the crypto markets, making crypto communications a rising trend in RegTech for 2022.

RegTech InsightsTop RegTech Companies

  1. Chainalysis

Chainalysis is the data platform for blockchain. Their mission is to transform cryptocurrency to realize its full potential. They are providing banks, businesses, and governments the data, software, and research they need in over 60 countries.

  1. Clausematch

Regulatory technology company ClauseMatch provides banks and businesses with end-to-end document discovery, authoring, governance, analytics, and search platform. Their SaaS offering enables financial institutions to streamline their regulatory change management through the company’s internal policies, standards, procedures, and controls.

  1. ComplyAdvantage

RegTech CompaniesAI and ML to help firms manage their compliance obligations is how ComplyAdvantage has differentiated themselves. The company is providing data intelligence to help firms understand the threat of automated risk and compliance processes.

  1. Fenergo

Fenergo provides financial institutions that digitally transform client onboarding lifecycle management for corporate investment and private banks. Their 100% focus on financial services has allowed them to transform how financial institutions worldwide can transform financial services through the entire customer lifecycle.

  1. Onfido

RegTech TrendsOnfido has made themselves the new identity standard for the internet. Their AI-based technology has the technology to assess the validity of government-issued IDs through facial biometrics. They have given companies the assurance to onboard customers remotely and securely.

  1. TruNarrative

TruNarrative was built on a single mission: to make safe commerce simple. Financial crime is growing, and this company’s digital solutions can offer real-time insight, analysis, and actionable data needed.


International provider of software ACTICO is making smarter decisions for RegTech. The company’s AI software and digital decisioning provides top tier software and tools to enhance day to day decision making and end to end automation.

  1. Ascent

Ascent is making it easier for regulated industries to do the right thing. This company offers cloud-based regulatory compliance software for financial businesses, banks, law firms, and asset management companies.

  1. PaymentWorks

PaymentWorks has made a service for compliance teams of all sizes to pinpoint their financial regulatory obligations. The company has created a platform for digital onboarding that eliminates risks of fraud while reducing cost.

The constant disruption of sophisticated technology will result in a busy year for RegTech. Many companies will look to differentiate the industry and provide customers with more solutions to their problems. With better data analytics, accuracy, warnings, and insights, organizations will be able to better optimize regulatory compliance efforts for optimal results.

Why Storm2?

Identifying the right FinTech talent is the number one challenge for startups – the RegTech sector is no different. At Storm2 our team of specialist consultants are experts in matching high-quality talent to the best RegTech institutions worldwide. Do you have a vacancy you would like to discuss? Please get in touch.