The need for help keeping in line with stringent regulations is on the mind of finance sector executives, according to GlobalData. The leading data and analytics company notes that mentions of ‘Regtech’ – a set of technologies that help companies comply with regulatory requirements – have been on the rise in company filings for the past five years, and saw a 23% increase in H1 2021.

Vishwas Vyas, Analyst at GlobalData, says: “The financial sector is rife with regulations, and compliance can be a cumbersome task. Finance executives are turning to digital solutions to ensure they meet requirements. H1 2020 witnessed nearly 100% growth in Regtech mentions, as compared to H1 2019. The trend was fueled by COVID-19 driven uncertainty, which led companies to take steps to minimize losses due to non-compliance issues.”

As identified by GlobalData’s Filing Analytics Database, European companies discussed regtech the most in H1 2020 and H1 2021. As the EU is a free-trade zone, involving multiple regulations imposed by the respective member states, implementing Regtech is an efficient way of keeping track of the ever-changing regulatory landscape.

Vyas adds: One thing to note is that sentiments around ‘regtech’ is on the rise in 2021 while ‘fintech’ has not changed*, compared to 2020. Regtech saw a 2% increase in sentiment scores in 2021*. As more consumers start using technology to deal with finances, there will be compliance issues related to online financial activity. Regtech is likely to transform the way in which compliance and regulatory frameworks are dealt with. With the increasing positivity around Regtech, companies are realizing the disruptive potential of the technology, which is still in a nascent stage.”

* Until 31 August 2021