Export opportunity – Nordic regulatory technology (RegTech)
Key details
Opportunity: Regulatory technology (RegTech)
Country: Nordics
Sector: Technology
Nordics – regulatory technology opportunity summary
Nordic countries are progressing in the transformation towards a cashless society and their central banks are exploring the possibilities of implementing e-currency. Six of the largest banks in the region have formed a joint venture to set up infrastructure for cross-border, multi-currency and instant digital payments between the countries in the region, the first of its kind in the world. The project will replace eight national legacy systems, handling multi-currency payments across a common infrastructure.
This is all happening in a highly regulated and monitored sector. Directives such as PSD2, MiFID, GDPR and KYC regulations have forced the banking sector to allocate investment to their governance, risk and compliance (GRC) procedures as well as technologies (RegTech).
Scale of export opportunity
According to Grand View Research, the global GRC market was valued at an estimated $31.27 billion USD in 2019. It is expected to see an estimated compound annual growth rate of 14% between 2018 and 2025.
The European market is estimated to account for 30% of the total market value. The banking, financial services and insurance (BFSI) segment is the largest in terms of GRC investments.
The Nordic banking sector is a consolidated industry with a limited number of banks controlling most of the market share. These incumbent banks have been forced to increase investments in the RegTech space due to fierce competition from challenger banks, but also due to poor publicity following revelations about shortcomings in AML and KYC procedures.
Company suitability
Scottish companies best positioned to win this type of business will fit with some of the following:
- RegTech companies with solutions in compliance, risk management, identity management and control, regulatory reporting, and transaction monitoring
- RegTech companies targeting governments and authorities
- Companies which have experience in the UK regulatory environment
Register your interest
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