With the pandemic leading to a great migration online for many who previously wouldn’t have considered it, an opportunity has provided itself to RegTech companies in key markets to make the most of the new normal.
Two key geographical markets where RegTech has flourished has been in the US and EMEA regions. Research by Markets&Markets found that North America was estimated to have the largest RegTech market size in 2021, with that position only expected to strengthen in the years to come.
According to Chad Schaefer – head of professional services at Clausematch – legislative developments in the US have helped make the market a stable hub for RegTech. He said, “The Department of Justice’s latest updates affected various aspects of compliance but they share a common theme: moving forward, regulators expect greater accountability and absolute proof that firms’ compliance programs are intentional and effective. This factor undoubtedly has made the US market mature for compliance technology.”
In terms of adoption, Emma Kempton – who serves as VP, Account Management at Clausematch – the demand has been increasing notably throughout the last five years. She continued, “In 2016, not a single bank had a cloud strategy, everyone wanted to manage compliance on-premises. Now, the situation has changed. We have multiple clients who have mandated that all policies must be on Clausematch. The project teams that have bought into the solution are tech-focused, they are attracted by innovative technology, very willing to adopt new tools, and are really keen to get things moving. Cloud technologies now feel absolutely normal.”
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