The Hot New Tech Industry You’ve Never Heard Of

It’s even worse in Europe, where banks like HSBC and Deutsche Bank estimate that it costs them well over $1 billion a year to make sure they comply with the EU’s plethora of financial regulations.

Regtech offers the solution to cut those costs.

A Seat at the Table

If there’s anything that points to the investment potential of this sector, it’s the fact that the regulators themselves are taking notice — and bringing these young companies into their “ecosystem,” if you will.

Singapore’s monetary authority, the Bank of England, and the U.S. Office of the Comptroller of the Currency (OCC) have all proposed making regtech companies part of their bureaucratic orbit — much in the way that Standard & Poor’s and Moody’s are sanctioned by federal regulators as keepers of bond market credit ratings.

Last year, in fact, the OCC proposed that some regtech companies have access to a special national bank charter “which would provide federal pre-emption and the increased clout that comes with being a bank.”

Whether these policy efforts ever bear fruit remains to be seen. But when such companies are being offered a “seat at the table,” it shows they’re worth paying attention to for investment considerations.

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Michael Molman 1 year ago Contributor's comment

Very interesting new field worth taking a look at! Can you specify some of these publicly traded reg-tech pure plays?