Dive Brief:
- Companies that make technology to help companies ensure they are meeting regulatory rules stand to fare well if President-elect Trump revises some of those rules, according to Reuters.
- The regtech industry — believes that with revised regulations, companies in regulated industries will need systems to help them traverse the changing regulatory landscape and avoid fines.
- According to research firm Celent, financial firms are expected to spend $72 billion on compliance technology by 2019, up from $50.1 billion in 2015.
Dive Insight:
Trump made campaign vows to change or get rid of regulations which he feels are stifling business innovation. But regtech companies say banks and companies in other areas that require regulation are likely to need regtech technology services in order to comply with any changes.
Plus, compliance has so many different facets to it, and then when you add data, particularly Big Data, it becomes even more challenging.
"Using next generation technology to uncover, structure, analyze and action customer data to reduce risks for the business is an imperative that will flourish regardless of government," Lex Sokolin, the global director of fintech strategy at research house Autonomous Research, told Reuters.
