How federated AI is transforming FinCrime & Which country dominates RegTech funding?

How Consilient is transforming financial crime prevention with federated AI

Founded in 2020, Washington DC-headquartered Consilient brings together next-gen technology and best-in-class AML and CFT knowledge to power a more secure, dynamic and effective solution for financial institutions.

Read the full story here.

Research highlight

US cemented its place as the global RegTech leader with 47% of all deals in 2024

Key Global RegTech investment stats in 2024:

• Global RegTech deal activity dropped by 43% YoY
• US companies secured 47% of the deals as the country cemented its place as the global RegTech leader in 2024
• Vanta, a leading online security and compliance management platform, secured the largest RegTech deal globally for the year with a funding round of $150m

?Global RegTech deal activity dropped by 43% YoY

The global RegTech market experienced a notable contraction in 2024, with both funding and deal activity declining compared to the previous year.

Total funding fell to $6.53bn, marking a 36% decrease from the $10.2bn raised in 2023, though it remained close to the $6.8bn recorded in 2020.

The number of deals dropped to 646, reflecting a 43% decline from the 1,142 deals completed in 2023 and a 54% decrease from the 1,403 deals in 2020.

This downturn highlights a cautious investment climate in the RegTech sector, as regulatory compliance solutions continue to attract interest but at a lower intensity than in prior years.

US companies secured 47% of the deals as the country cemented its place as the global RegTech leader in 2024

The United States retained its position as the dominant player in the RegTech market, accounting for 303 deals (47% share) in 2024, though this represented a 47% decline from the 572 deals recorded in 2023.

The United Kingdom followed with 43 deals (7% share), down 54% from 93 deals in the previous year.

India emerged as a key market in 2024, completing 34 deals (5% share) and replacing China, which was among the top three in 2023.

This shift in rankings underscores the evolving landscape of RegTech investment, with India gaining momentum even as overall market activity has slowed.

Vanta, a leading online security and compliance management platform, secured the largest RegTech deal globally for the year with a funding round of $150m

The $150m investment was led by Sequoia Capital, boosting its valuation to $2.45bn.

This strategic funding will enable Vanta to advance its AI-driven platform, pushing the boundaries of compliance automation while expanding into the UK and Australian markets.

With support from heavyweight backers like Goldman Sachs and JPMorgan Chase, this latest round brings Vanta’s total funding to $353m since its founding in 2018.

Serving over 8,000 clients, including companies like SmartRecruiters and ZoomInfo, Vanta’s platform accelerates compliance certification through process automation, replacing legacy compliance tools and positioning it as a pivotal player in the RegTech landscape.

RegTech news

• Will AI-powered fraud detection redefine security? - With the creation and adoption of new AI technologies reaching warp level speed, it is becoming more apparent than ever that we are now truly living in the digital-dominant age. Read the full story here.
• How can ESG teams pitch ESG compliance as a cost-saving division? - There has been a recent push in many regions for Environmental, Social, and Governance (ESG) regulation. While many firms might be tempted to meet the minimum requirement and just check the boxes, can ESG teams pitch compliance as a cost-saving division and not just a cost? Read the full story here.
• How can RegTech help ensure ethical AI compliance? - With the use of artificial intelligence by businesses and individuals alike exploding across the world, one of the biggest challenges going forward that is facing the industry is to ensure that AI remains ethical and well structured. How can RegTech help in this battle??Read the full story here.

Regulation news

• UK plans to overhaul payment systems oversight amid economic reforms - In a bold move to streamline regulatory oversight and spur economic growth, the UK government is actively considering the abolition of the Payment Systems Regulator (PSR) as part of a comprehensive review of economic regulators. Read the full story here.
• EU set to lighten sustainability reporting load for SMEs - In a sweeping move to streamline sustainability reporting across the European Union, the European Commission has announced a significant easing of regulations for SMEs. Read the full story here.
• Hong Kong tightens ESG disclosure rules for pension funds - In a significant move to bolster transparency, Hong Kong’s pension regulator has mandated enhanced disclosure standards for ESG funds managed within the city’s MPF schemes. Read the full story here.

RegTech Deal news

• Taktile’s innovative AI decision platform garners $54m from top investors - Taktile, a decision automation platform that is redefining risk management strategies in financial services, has secured $54m in a Series B raise. Read the full story here.
• SPP and Acuminor collaborate to upgrade financial crime risk management - SPP Pension & F?rs?kring has entered into a strategic partnership with Acuminor, a leader in financial crime intelligence and risk analysis. Read the full story here.
• Dreadnode captures $14m to fortify offensive AI security capabilities - Dreadnode, an emerging startup specializing in offensive AI security, has recently secured a $14m Series A funding round. Read the full story here.

CyberTech news

• Cloud security firm Edera secures $15m Series A to enhance AI infrastructure protection - Edera, a cloud security company specialising in workload isolation, has raised $15m in a Series A funding round. Read the full story here.
• AI-driven cybersecurity firm RAD Security raises $14m in Series A funding - RAD Security, a cybersecurity company specialising in AI-driven cloud security solutions, has raised $14m in a Series A funding round. Read the full story here.
• HUB Cyber Security secures $13.5m funding to restructure financial obligations - HUB Cyber Security, a global leader in confidential computing and advanced data fabric technology, has successfully resolved $16.6m in legacy liabilities through strategic settlements with Oppenheimer & Co. and Dominion Capital. Read the full story here.

Other RegTech news

• How firms can learn from some of the biggest financial crime scandals - Over the last decade, several high-profile financial crime scandals have rocked some of the world’s largest organisations, underscoring the critical vulnerabilities within corporate compliance frameworks. Read the full story here.
• Navigating the challenges of financial crime and compliance in 2025 - As we look further into 2025, the landscape of regulatory compliance is becoming increasingly complex. Read the full story here.
• Exploring AI’s role in enhancing AML strategies in banking -The mandate from the U.S. Treasury’s FinCEN is clear—financial institutions must diligently report suspicious activities to comply with the Bank Secrecy Act, especially concerning AML protocols. Read the full story here.