The Global RegTech Industry Benchmark Report

74 Pages Posted: 20 Apr 2020

See all articles by Emmanuel Schizas

Emmanuel Schizas

University of Cambridge - Cambridge Centre for Alternative Finance

Grigory McKain

affiliation not provided to SSRN

Bryan Zheng Zhang

Cambridge Centre for Alternative Finance, Cambridge Judge Business School, University of Cambridge

Kieran Garvey

University of Cambridge - Cambridge Centre for Alternative Finance

Altantsetseg Ganbold

affiliation not provided to SSRN

Hatim Hussain

Gujarat National Law University; University of Cambridge - Cambridge Centre for Alternative Finance

Pankajesh Kumar

affiliation not provided to SSRN

Eva Huang

University of Sydney Business School - Discipline of Business Law

Shaoxin Wang

affiliation not provided to SSRN

Nikos Yerolemou

University of Cambridge - Cambridge Centre for Alternative Finance

Date Written: June 30, 2019

Abstract

The first global benchmark study of the RegTech sector by the Cambridge Centre for Alternative Finance, conducted with the support of EY Japan, is based on a survey of 111 firms as well as regulators and industry experts. We estimate that the global RegTech industry generated $5 billion in revenue in 2018, and had raised $9.7 billion in external funding as of early 2019. The financial services sector dominates demand for RegTech services but most vendors now target non-financial sectors, and this share is set to grow.

The RegTech market can be broken down into five distinct segments: 1. Profiling and due diligence 2. Dynamic compliance 3. Reporting and dashboards 4. Risk analytics 5. Market monitoring.

The sector underwent a period of rapid growth between 2014 and 2018, but is now growing mostly through incumbent expansion rather than market entry. Long sales cycles, complex IT planning within client institutions, difficulties in establishing trust and high levels of competition have left some vendors struggling to gain traction. A handful of larger vendors thus dominate most funding and commercial activity.

Keywords: regtech, compliance automation, machine learning, artificial intelligence, fintech, financial regulation, regulation

JEL Classification: G28, G38, L11, L25, L86, O33

Suggested Citation

Schizas, Emmanuel and McKain, Grigory and Zhang, Bryan Zheng and Garvey, Kieran and Ganbold, Altantsetseg and Hussain, Hatim and Kumar, Pankajesh and Huang, Eva and Wang, Shaoxin and Yerolemou, Nikos, The Global RegTech Industry Benchmark Report (June 30, 2019). Available at SSRN: https://ssrn.com/abstract=3560811 or http://dx.doi.org/10.2139/ssrn.3560811

Emmanuel Schizas (Contact Author)

University of Cambridge - Cambridge Centre for Alternative Finance ( email )

10 Trumpington Street
Cambridge, CB21QA
United Kingdom

Grigory McKain

affiliation not provided to SSRN

Bryan Zheng Zhang

Cambridge Centre for Alternative Finance, Cambridge Judge Business School, University of Cambridge ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom

HOME PAGE: http://www.jbs.cam.ac.uk/ccaf

Kieran Garvey

University of Cambridge - Cambridge Centre for Alternative Finance ( email )

10 Trumpington Street
Cambridge, CB21QA
United Kingdom

Altantsetseg Ganbold

affiliation not provided to SSRN

Hatim Hussain

Gujarat National Law University ( email )

Attalika Avenue
Knowledge Corridor
Koba, Gujarat, 382007
India

University of Cambridge - Cambridge Centre for Alternative Finance ( email )

Cambridge
United States

Pankajesh Kumar

affiliation not provided to SSRN

Eva Huang

University of Sydney Business School - Discipline of Business Law ( email )

University of Sydney
Sydney, NC NSW 2006
Australia

Shaoxin Wang

affiliation not provided to SSRN

Nikos Yerolemou

University of Cambridge - Cambridge Centre for Alternative Finance ( email )

10 Trumpington Street
Cambridge, CB21QA
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
67
Abstract Views
268
rank
363,737
PlumX Metrics