It is predicted that regulations in the financial services sector will increase with more demand to oversee data, reporting and operation processes. Global financial institutions with locations in different jurisdictions are already faced with the nightmare of having to comply with varying regulatory requirements. Banks, fund managers, and other financial institutions are keen on partnering with RegTech startups to help them deal with the growing regulatory and compliance demand. The fact that RegTech is cloud-based helps to spread its application across the world with low barriers to entry. As such, there are numerous opportunities for growth in the sector. Already, there are numerous RegTech startups worth following but this article brings you some 10 top such startups in Europe.
Digital reasoning helps financial institutions track the behaviour of their employees. Its surveillance software is used by some of the largest banks in the world such as Goldman Sachs and UBS. The software is capable of monitoring English conversations in six dialects including American, British, Scottish, and South African English. By monitoring phone and email conversations, the software is able to detect any suspicious activities by an employee of a financial institution.
Qumram was established in 2011 and helps financial services companies to keep a closer eye on their employees’ conduct. It does this by enabling these institutions to collect information relating to their employees from platforms such as WhatsApp, WeChat, LinkedIn and Skype among others. Quram serves more than 50 clients including the U.S based asset management firm Russel Investment and Swiss-based lender UBS.
Run by Diana Paredes, a former trader, Suade focuses on prudential regulation particularly with respect to Basel III and Mifid II. Suade’s products include a platform for scenario testing for liquidity management and a stress testing platform for capital requirements.
ComplyAdvantage was launched in 2014. Currently, it serves 100 clients providing them with customer monitoring and screening platforms and transactional monitoring services enabling them to detect suspicious behaviour in real-time.
FundApps was founded in 2010 and helps fund managers by simplifying their regulatory compliance processes. In particular, its cloud-based software is instrumental in helping fund managers, pension funds, hedge funds and investment banks to comply with numerous regulatory requirements in the industry.
Sybenetix makes use of artificial intelligence technology to help financial institutions in closely monitoring their staff’s conduct. By monitoring the conduct and transactions of their employees, financial institutions including hedge funds, asset management firms and banks are able to enforce compliance internally.
ClauseMatch has gone through both the Barclays Accelerator Programme and Accenture Fintech Innovation Lab graduating in 2014 and 2016 respectively. ClauseMatch enables companies to collate and edit files, emails, and documents on a single platform. It also helps these companies keep an audit trail of any changes made to their records.
Alyne was founded in 2015 and operates in the cyber security space. It helps firms to manage and handle digital security controls effectively. Alyne is most suitable for small businesses that do not have very large compliance and risk functions.
Privitar was founded in 2015 and helps European firms comply with data security regulations. Its software is capable of converting personal data that should otherwise not be shared into anonymous form enabling it to be shared without breaching regulations.
Onfido is quickly gaining significance in the UK RegTech sector. It makes use of machine learning technology to help companies comply with anti-money laundering and know your customer (KYC) requirements. This is achieved through the automation of identification verification process for a financial institution’s prospective clients.