This blog post examines the different components of the regulatory technology (regtech) ecosystem. We will illustrate what the categories of innovation are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.
Let’s start off by looking at the Sector Map. We have classified 569 regtech startups into 10 categories. They have raised $12B from 987 investors. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.
We see that Financial Crime Compliance is the largest category with 118 companies. Financial Crime Compliance companies help financial institutions comply with regulations on identity related crimes. Their functions include client on-boarding, payment fraud, account takeover, and identity verification. Some example companies in this category are NetGuardians, Finomial, DueDil, and Feedzai.
Let’s now look at our Innovation Quadrant to find out the funding and maturity of these categories in relation to one another.
Our Innovation Quadrant divides the regtech categories into four different quadrants.
We see that the Pioneers quadrant has the most number of regulatory technology categories at 5, accounting for 50% of all regulatory technology categories. The Quality Compliance category has the highest average age, and the Network Compliance category has the highest average funding. On the other hand, the Compliance Tracking category is low on both average funding and age.