European banks are operating in a very complex, fast-changing and highly regulated environment and are faced with many challenges. Since 2015 no less than 18 new directives or regulations have been announced for implementation between 2016 and 2020. Regtechs – a combination of Regulation and Technology used to describe the application of new technologies to the world of regulation and compliance – has emerged as a sub-sector of the technology industry in the last three years. This sector will gradually represent the ideal partner for banks to both meet regulatory requirements and achieve compliance with cost reduction targets by leveraging on the full potential of these new technologies. The purpose of this infographic is to provide an overview of the European Regtech sector: key trends, responses to the challenges of the banking sector as well as clients, technologies and coverage of regulations.

1. KEY TRENDS
OF EUROPEAN REGTECH
FIVE MAJOR BANKING
CHALLENGES TACKLED BY REGTECHS
TWO TARGET CLIENT APPROACHES
SIX MAIN TECHNOLOGIES
POWERING REGTECHS
THE MAIN REGULATORY
TOPICS TACKLED BY REGTECHS
80
Regtech companies
surveyed across Europe
serving banks
Main Source: Regtech Study 2017/2018 Sia Partners & AEC Fintech.
EUROPEAN REGTECH
INFOGRAPHIC
86%
of surveyed
Regtechs were
created after 2008
47%
of Regtechs
in our sample are
based in the UK
28%
of Regtechs
primarily target
Asset Management
clients
1 2 3
26.9%
of Regtech
solutions are
powered by Artificial
Intelligence (Machine
Learning, NLP and RPA)
technologies
18.9%
of surveyed Regtechs
focus on Anti-Money
Laundering regulatory
compliance
4 5
27%
Seamless and
Real-Time Identity
Management and
Control
11%
Open and Cognitive
Transaction Monitoring
27%
Automated
End-to-End Solution
for Regulatory
Reporting
14%
Smarter and
Transversal Risk
Data Management
13%
Other
8%
Smoother and
Efficient Compliance
Management
26.9%
Artificial Intelligence,
Machine Learning, NLP
and RPA
19.4%
Cloud
18.5%
Big Data
14.8%
API
5.6%
Blockchain
3.7%
Other
11.1%
Web Platform /
ERP
18.9%
The EU 4th AML
Directive
14.6%
MiFID 2
11.2%
BCBS239
10.7%
GDPR
6.3%
PRIIPS
38.3%
Other
(CRD IV, FRTB, PSD2,
Anacredit, IRRBB)
Group A: specialists Group B: generalists
28.4%
Asset Management
22.4%
Transversal - all lines of business
and support functions of financial
services including risk, compliance,
finance and support departments
11.2%
Multisector solutions
12.1%
Retail Banking
20.7%
Corporate and Investment
Banking (CIB)
5.2%
Insurance
Fintech
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