RegTech for all
Finally, while I think the FCA’s research was too general in its analysis of RegTech, in another important aspect it wasn’t broad enough.
The research was based on interviews conducted with senior decision-makers at firms with more than 200 employees. At most, that’s only 20% of the market.
What about the other 80%?
Many regulated firms with less than 20 members of staff have a full-time compliance officer and use RegTech for one or more applications already (e.g. AML). It’s likely they would use more RegTech if they clearly understood the benefits.
It’s up to RegTech firms and the FCA to give them that clarity.
And this starts with understanding how both small and medium-sized firms are currently managing their compliance and then mapping that against the benefits that different RegTech use cases offer.