The Expand Research and The Boston Consulting Group RegTech report was presented last February by Pauline Wray and Simin Liu.
With the nickname of the FinTech Control Tower, the report’s 18th issue offers a global vision of the international scenario for financial services RegTech.
A total of 391 RegTech companies were mapped, sorted into 7 key categories such as verification, which included Electronic IDentification. The other 6 were general compliance, reporting, risk analysis, regulatory analysis, monitoring, and data capture and integration. Australia is the third country in the world in number of RegTech companies and most of them are in APAC countries.
The reason businesses integrate the solutions offered by RegTech companies are, in descending order, increased efficiency, increased effectiveness, reduced costs, and competitive advantage. In our case, all the companies working with us have improved their customer experience, have cut back their time to market, and slashed the cost of their marketing campaigns. They have also seen their earnings increase exponentially, so our value add can be felt in all the possible areas.
One of the biggest downsides for banks when adopting regulatory technology is that they usually only comply with local regulations or they are concerned they will be rejected by regulators. VideoID’s technology is universal, can be applied in 155 countries, and today recognizes around 800 different documents, from official IDs to passports and driver licenses. It is compliant with the European regulation, KYC/AML and eIDAS, one of the strictest in the world. More and more regulations are opening up to new technologies when they discover how effective they have become in security as well as how they improve the user’s experience and company profits. This is a clear win-win situation that regulation should facilitate to avoid standing in the way of its own start-ups and foreign entrants moving in.
In our case, streaming video identification with artificial intelligence and machine learning provides a highly secure product that regulators are already beginning to recognize. The validity of image-based solutions, common in English-speaking countries, cannot be applied beyond their borders and our technology offers a sizable increase in security over handling a simple static image or a selfie unconnected from the artificial intelligence applied to the ID, the option used up until now for remote identification.
The global consulting firm Gartner was one of the first to recognize our contribution to the market and society, naming us Cool Vendors because we were creating a new category of services online.
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