The increase in bank regulations since the 2008 GFC has created a big opportunity for Regtech, and there has been an explosion in funding for the industry.
Last year, investors funded 81 deals totaling $1.1 billion.
Funding accelerated this year. According to KPMG, investors placed $1.3 billion in 36 deals in just the first half of 2018.
Regtech startups often focus on streamlining reporting and information processing through AI.
AI is usually discussed in terms of job losses, and assuming we accept this, Regtech will affect employment at both regulators and banks.
Both banks and regulators must sift through enormous amounts of text and data and use pattern recognition to take a proactive approach to compliance and regulation.