June 5, 2018

RegTech – The Greatest Opportunity in FinTech

Banks globally are now spending in excess of $270 billion per year on compliance and regulatory obligations, having 10–15% of their staff dedicated to compliance on average. Compliance costs for FIs amount to substantial parts of total expenses, with a negative correlation between the size of the institution and the percentage of total costs. While banks with assets ranging from $1 billion to $10 billion reported total compliance costs averaging 2.9% of their non-interest expenses, banks with less than $100 million in assets reported costs averaging 8.7% of their non-interest expenses. Large US and European banks are spending as much as $20 billion a year on technology to help them comply with the newly evolving regulations such as MiFID and PSD2. Over time, as regulatory environments become increasingly more complex, 300+ million pages of regulatory documents will be published by 2020 and 600+ legislative initiatives need to be cataloged by…

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