2017 RegTech Report: Trulioo’s GlobalGateway Ranks Top Identity Verification Tool – Two Years in a Row
How can a compliance officer or senior executive determine what RegTech (Regulation Technology) solution is ready for practice and implementation versus concept and theory? What companies can deliver the savings promised by the technology, while delivering full-fledged, secure, stable products? Those questions are the focus of a new report by MarketFintech, the 2nd Edition RegTech Supplier Performance Report.
Trulioo is delighted to achieve the top ranking in our category, Identity Checks / Validation Tools and be the fourth ranked company in the overall RegTech rankings. Some of the criteria MarketFintech used to create the rankings include:
- Reputation of supplier
- Vendor performance. Buyers want evidence of performance, rather than just thought leadership
- What institution types are buying what regulatory technology solutions
- Where in the world they are being deployed
- What issues they look to address
- User base numbers across jurisdictions
“For technology to enable companies to transform their business, it requires a vendor that truly understands the challenges faced every day by senior executives, “ said Tina Snelling, editor RegTech Supplier Performance Report. “Truiloo has once again demonstrated their leadership position through the significant uptake of their smart technology for instant verification of identities globally.”
RegTech, while still an emerging industry, is helping unlock and facilitate the delivery of regulatory requirements more efficiently and effectively than existing capabilities. It’s no wonder then, that the industry is garnering record levels of investment, attracting just under $600 million in the first half of 2017.
The report points out that, while technology is in the name, it’s not about technology for technologies sake. Rather, it’s about solving business problems; which companies can understand their customers’ needs and deliver solutions that can efficiently integrate into their business workflows and deliver results.
Snelling continued, “The future leaders in RegTech will continue to be the ones that truly understand the business issues and see ‘tech’ as an enabler.”
Regarding problems, the issues that RegTech are trying to solve are immense and complex. Over 50,000 regulatory documents have been published across the G20 since 2009. One regulation alone, MiFID II, generated 30,000 pages of regulatory text. Governance, Risk and Compliance (GRC) is estimated to account for 15 to 20% of ‘run of the bank’ costs.
The report explores 47 companies across a range of RegTech’s solutions in six key areas:
- Compliance, risk and due diligence universal tools
- Legislation / Regulatory gap analysis
- Transaction reporting and monitoring
- Workflow and process tools
- Identity checks / Validation Tools
- Regulatory reporting tools
RegTech Supply Chain
As Trulioo recently created a blog series on the RegTech Supply Chain, we found MarketFintech’s categorization interesting. With so many companies in the field, and so many different areas of focus, what’s the best way to conceptualize the industry? We came up five categories:
While the categories don’t match up exactly, much of the difference is attributable to semantics. In the course or our research, we found categorization schemes that ranged from five to 11 different categories. It points to the complexity of the industry and how early it is for RegTech.
The best days of RegTech are ahead of us. GRC software is forecast to grow to $120 billion by 2020 and investors could see a return of 600 percent. An estimated 2.5 percent of the world’s GDP is laundered money, a huge opportunity for AML (Anti-Money Laundering) compliance to prevent and help ensure that money gets into more productive hands. RegTech can also assist in helping financial inclusion of the estimated 2.5 billion people who are unbanked or underbanked.
Regulation complexity is increasing, from the closing of loopholes to new beneficial ownership requirements. The technology is improving, implementing new capabilities such as AI, big data and biometrics. RegTech will grow from a nascent industry to a key enabler for legal compliance, risk management and effective governance.
Trulioo has been at the forefront of RegTech and we continue to keep a finger on the pulse of all things RegTech. Make sure you subscribe to our newsletter or blog, and we’ll keep the RegTech news coming your way!