RegTech startups tend to focus on helping financial institutions contend with growing regulatory requirements after the 2008 financial crash, including automation of compliance tasks, mitigating operational risks and improving risk assessment through smarter use of data and more intuitive software.
Deloitte's 2016 report (pdf) 'Is RegTech the new FinTech?' puts it simply: "Increasing levels of regulation and a greater focus on data and reporting has however brought the RegTech offering into greater focus thereby creating more value for the firms that invest in these solutions."
Rob Moffat, partner at Balderton Capital, a venture capital firm that has invested in two RegTech startups on this list, told Techworld: "The banks are under pressure and finding it hard to find new revenue sources. There is more and more regulatory costs, so they are more open to ways to change and improve there."
Here are some of the most innovative RegTech startups in the UK today, whether they are helping big banks stay ahead of their complex compliance requirements, or businesses remain compliant through smarter anti-money laundering (AML) and know your customer (KYC) checks.