Innovation in Compliance Technology: Emerging Themes and Vendor Solutions

by Arin Ray, June 22, 2017
Vendor Reviews


Regulatory and cost pressures are exposing the limitations of the traditional approach to compliance.

Celent has released a new report titled Innovation in Compliance Technology: Emerging Themes and Vendor Solutions. The report was written by Arin Ray, an Analyst with Celent’s Securities & Investments practice.

New regulations are exposing the limitations of the traditional approach to compliance and forcing financial institutions to innovate by adopting new technology and operational models.

An onslaught of regulations and the rapid pace of their evolution have increased complexities of compliance operations manifold. The situation is compounded by limited technology capabilities and the need to analyze growing volumes of data. The result is exploding compliance costs, not only for running regular operations, but also from the risk of heavy fines and reputational damage.

Compliance technology is a wide-ranging theme encompassing technology solutions applied in risk and compliance operations of financial institutions. In this report we discuss four themes: artificial intelligence and robotic process automation, "mutualization" (shared services) in compliance, adoption of the cloud, and distributed ledger technology.

An interesting combination of startup “RegTech” firms and incumbent providers is reshaping the compliance provider landscape, as banks increasingly look to partner rather than invest in in-house technology innovation. In this report, we discuss in detail 11 vendor solutions and their specific use cases, with a good mix of startups and incumbents.

“The regulatory environment is pushing all participants to come together and foster innovation that solves today’s challenges without jeopardizing safety and stability of institutions and markets. We expect the pace of innovation in compliance technology will only accelerate going forward,” Ray said.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

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Table of Contents

Executive Summary



Key Research Questions


Growing Importance of Compliance Operations


Challenges in Compliance Operations


Emerging Themes in Compliance Technology



Artificial Intelligence and Robotics Process Automation









Distributed Ledger Technology


Innovation in Compliance Technology



Surveillance Solutions



KYC/AML Solutions



Regulatory Reporting Solution




Leveraging Celent’s Expertise



Support for Financial Institutions



Support for Vendors


Related Celent Research


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