When RegTech conversations become bigger than technology

💷 £100 billion. That’s the NCA’s estimate of money laundered through the UK each year.  (that’s enough to fund the entire World Health Organisation for nearly 50 years, based on its 2026/27 budget). 

💰 £38.3 billion. That’s roughly what financial services spend annually to detect and prevent financial crime, with some of that spend attributed to RegTech, AI tools, and data solutions…

and there’s definitely no shortage of impressive RegTechs in the UK and global market.  Last week’s Global RegTech Summit really reflected the depth of innovation now happening across this space.  Check out the line up below.

Yet, the financial services sector still struggles to transform financial crime risk management and compliance in a way that ensures sufficient ROI on that £38.3 billion and address that £100 billion problem. 

Often, the issue isn’t the technology itself.   The gaps usually lie elsewhere.  When growth-focused businesses start exploring RegTech, the conversation quickly becomes bigger than the technology.  It often turns into a discussion about:

• What problem(s) are we actually trying to solve?
• Can one data clean up and/or one RegTech solution deliver multiple benefits? 
• Do we know where the relevant data is and is it accurate, complete, and up to date?  
• Do we need to centralise our data and when/how should we do that? 
• How will we know the RegTech is going to work and will continue to work?  
• How will we justify our investment?
• Can our existing governance structures support alignment, implementation, and ongoing compliance success?

The strongest financial crime transformations often don’t start with the tech, they start with clarifying the above before the tech is even selected.

The right RegTech, carefully selected, safely deployed, and well-governed, can deliver far more than efficiency.  It can: 

• Improve accuracy and precision in risk assessments and risk decision-making
• Reduce human error
• Strengthen evidence of compliance
• Provide actionable management information
• Build trust with your customers and across your business  
• Enhance your culture, with systems supporting accessibility, transparency and collaboration across the 3LOD. 

All of that value hinges on getting the strategy, data, investment plan, governance, ownership, accountability, and trade-offs sorted from the outset.  

Let’s start with clarity.  Then let the RegTechs blaze the trails.