Since the beginning of the Global Financial Crisis of 2007/2008, financial services firms have paid more than $313 billion in fines and settlements in the U.S. alone. Global penalties total $36 billion for non-compliance with AML, KYC and sanctions regulations in the same period.
The cost of compliance has skyrocketed as around 10-15% of total workforce of financial institutions is dedicated to governance, risk management and compliance according to estimates. Tier one banks are said to be spending well in excess of $1 billion a year on compliance-related costs, or some $270 billion a year for the industry as a whole.
At the same time, RegTech has taken the industry by storm, promising more efficient and cost-effective solutions to the regulatory dilemma. Market value of the sector and investment in RegTech companies has both been increasing steadily and is forecasted to grow at of more than 50% per year over the next six years.
From the time when we first launched the PlanetCompliance RegTech Directory four years ago, the first of its kind, the number of RegTech firms has exploded and is likely to set a new record again this year. Once again, our Directory will present a comprehensive overview of the RegTech industry and be an invaluable guide on the numerous companies that populate this crowded space.