RegTech Joins the “_______” Tech Phenomenon
Recently, Outsell VP and Lead Analyst Will Jan wrote about RegTech and the rise of AI and regulations combining to create a perfect storm of opportunity. The space is on fire with companies like Trunomi, Silverfinch, and IdentityMind Global. Then there are startups like PassportCard, Suade, and FundRecs.
Of course, there’s Big Blue, who has always been strong in financial services and, in the last decade, risk. Bringing Watson to the table and putting more emphasis on risk has also added to their strength. RegTech joins a plethora of “______techs.” As we noted following Outsell’s DataMoney this year, if you aren’t in the ____tech of something, the Uber or AirBnB of something (like Rentus.com), or have Machine Learning or AI in your company’s boilerplate description, you might as well pack it up and go home. Well, that or at least plan to take a point or two off your valuation. SaaS is so yesterday.
Tech waves come and go and so will agtech, fintech, edtech, insurtech, healthtech, martech, adtech, and anything else you can possibly tech. The “tech” suffix is just as bad as dot.com for those of us old enough to remember it. It might, just might be the sign of a bubble. Remember when you had to be the dot.com of something? We are due for another downturn. I hosted conferences on black Monday on Oct. 19, 1987. I was sitting next to Mark Walsh, who was losing net worth one zero at a time in 2001 when the dot.com bust occurred. And then there was our event in 2008, when Lehman Brothers went belly up, and our keynote speaker Dr. Michael Boskin was on the phone to the White House trying to keep AIG from doing same. I am not jinxing Outsell’s Signature Event or Outsell’s DataMoney, but what I know for sure is nothing goes up in a straight line and economic cycles happen. So, watch for the jargon, because it’s a sure sign every time.
As for RegTech — I wish the RegTech folks well. Will advises, and I believe him, that RegTech will create opportunities for all data and workflow solution providers because the objective of driving down compliance-associated costs, whether they relate to the implementation of compliance measures or are the result of fines, penalties, and audit fees from non-compliance, is common among almost all companies. He says, Regtech essentially takes GRC solutions a step further by addressing today’s need for additional data protection and transparency as well as compliance acceleration. It’s a hot segment, and one thing we know for sure, regulations are like death and taxes. They are here to stay and not going away. In fact they come back stronger with downturns. So, maybe after our next economic cycle looms and we dip into a downturn, the RegTech players will be the few ______tech players who survive.
Need help with your data strategy? Outsell is the leading research and advisory firm in data monetization and commercialization. Let us help you grow your business, contact us.