After a strong 2021, many RegTech companies are looking ahead to the new year with optimism for another year of advancement and greater innovation. With the pandemic still raging on, 2022 could be another year for RegTech companies to further ingrain themselves into the system. What trends should the industry look out for this year?
“The RegTech industry is a truly at a tipping right now” claims Clausematch CEO Evgeny Likhoded. “Digital transformation created an entirely new set of challenges for compliance teams, but now this environment has created a natural foundation for automation and collaboration. As organisations have become aware of the opportunities, the demand for technology has grown rapidly over the recent twenty months, and this expansion looks set to continue over the coming year.”
Likhoded believes there are four key trends that will play out in 2022. First, RegTech investment in financial services will spread to smaller players. He said, “To date, the vast majority of growth in RegTech has been driven by the financial services sector, with a significant acceleration due to the pandemic. As is to be expected, most of the initial investment has come from large, established financial institutions.” He cited a Thomson Reuters report from last year that found 81% of ‘global systemically important financial institutions agreed the pandemic had significantly increased reliance on tech solutions for compliance, while 73% cited the greater value of RegTech as its importance to operational management.