RegTech plays a critical role in helping financial institutions to better understand and manage risks and streamline regulatory compliance processes. Past attempts to digitize risk and compliance processes focused on operational efficiency and cost reduction. In contrast, RegTech offers much more in terms of mitigating risk across the board including operational, financial and reputational risks. Below are 10 RegTech startups operating in the risk management space.
AlgoDynamics was established in 2013 and is headquartered in London. The founders, Jeremy Sosabowski and Wei Teo, are experts in algorithms, experimental physics and mathematics. They established the firm to help financial institutions reduce overreliance on prediction methodologies that depend on past events which may not always give accurate results. The firm’s risk analytics tools warn you of major directional market movements hours or days in advance, enabling you to minimize exposure to risk. AlgoDynamics serves investment banks, asset managers such as family offices, hedge funds, CTAs and managed funds. Its analytics engine makes use of primary data sources and proprietary unsupervised machine learning technology.
AQMetrics was founded in 2012 and is located in Ireland. Its advanced analytics and rule engine give risk insights to both asset managers and investment fund managers across core investment areas like credit, counterparty, liquidity and market risk. To ensure pretrade, intratrade and posttrade risk monitoring, AQMetrix sends automated alerts to customers through email or SMS.
Athena was founded in 2015 and is headquartered in Tel Aviv, Israel. The firm generates portfolio risk alerts by tracking live market data. It streams significant financial data to traders, investors and financial institutions. Athena focuses on entity identification and using its unique approach to the text, it is able to find news that can have an effect on its clients, even where such a client is not mentioned in the text.
Based in Sweden, Global Fund Watch was established in 2015 to help organisations with due diligence of fund counterparties. The firm provides a better data for analysis of compliance risks. Additionally, it provides secure and transparent monitoring of the distribution chain.
NeoRM is a US based RegTech startup founded in 2015. It has a process control platform that automates governance and regulation by assigning accountability and driving transparency, therefore, reducing risk exposure.
OpenGamma is a UK based RegTech company that was established in 2009. It operates in the derivatives market, providing unique analytics that match buy-side needs with sell-side constraints. This way, the sell-side can minimize expenditure and the buy-side can make better counterparty decisions based on data.
A Centralised management dashboard, Open Risk is a Netherlands-based RegTech startup founded in 2014. It is an independent financial risk analysis tools provider. The firm has a strong focus on openness and standards and helps financial services companies to improve their risk management capabilities with cost effective online tools.
Promapp was founded in 2002 and has its headquarters in New Zealand. It’s a centralized risk management dashboard. Promapp helps companies to build, improve and share process knowledge from an online central repository.
Risksystem was founded in 2013 and is based in Ireland. The firm provides fund managers with a cost-effective but comprehensive solution for risk management. Consequently, they are able to meet AIFMD and UCITS risk obligations.
Scaled Risk was established in 2012 and is headquartered in France. Making use of big data, it provides investment banks with a trustable view of global risk. This helps them to scale up their risk surveillance.