Christian Visti Larsen (CEO at NewBanking ApS), Anastasia Dokuchaeva (head of partnerships at ClauseMatch) and Nathan Snyder (a partner at Brickendon) outlined their top trends for RegTech in 2018:
- Resolving identity/verification issues — a huge potential for saving on resources will drive innovations in this direction.
- Artificial intelligence for fraud detection — with artificial intelligence’s capabilities growing exponentially, it just makes sense to apply it in order to improve fraud detection capacities.
- Software to regulate cryptocurrencies — with cryptocurrency likely becoming more regulated, software will be needed for financial institutions’ anti-money laundering efforts.
- Moving to long-term, holistic RegTech solutions — the RegTech industry is starting to move past specific-rule solutions and into holistic approaches to compliance.
- RegTech becoming more than just a small part of FinTech — RegTech is a growing trend that is likely to become just as mainstream as FinTech.
- RegTech investment growth — investments in RegTech grew by 16% in 2017. This trend is expected to continue this year, with massive investments placed in RegTech startups. By 2020, global demand within the sector is expected to reach USD 118.7 billion.
- Increased data portability — although many companies seek to protect their data and isolate it from the outside world, the modern financial world is being built around using data from a myriad of sources to provide more competitive services.
- Regulatory impacts — regulatory environments are increasingly moving towards an individual-rights approach, giving customers more and more control over their data and how it used.
- Innovation — the key to staying competitive in the modern world is simple: stay ahead of your competitors in order to offer customers something unique and useful.