How to navigate ethical AI challenges & RegTech deals drop almost 50% since 2022

Navigating ethical AI in financial services: Insights and challenges

In an age where the power of AI is growing exponentially, being able to harness the possibilities from such a technology is vital. Just as vital though, is understanding the ethical sphere around artificial intelligence.?

Read the full story here.

Research highlight

Global RegTech deal activity halved over the last five years as investors grow cautious

Key Global RegTech investment stats in 2024 YTD:?

• Global RegTech deal activity halved over the last five years
• Average deal value increased to $15m as investors grow cautious and invest in more established RegTech companies
• 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 halved over the last five years

In 2024 year-to-date (YTD), the global RegTech sector experienced declines in both deal activity and funding compared to prior years.

A total of 428 deals were recorded in 2024 YTD, representing a 46% decrease from the 793 deals completed in 2023 and a 49% drop from the 843 deals in 2020.

Funding also fell, with RegTech firms raising $6.4bn in 2024 YTD—a 37% decline from the $10.1bn raised in 2023 and a 5% drop from the $6.7bn raised in 2020.

This downturn highlights a cautious investment climate as firms grapple with economic uncertainty and evolving regulatory landscapes.

Average deal value increased to $15m as investors grow cautious and invest in more established RegTech companies

The average deal value in 2024 YTD was $15m, a notable increase compared to $12.8m in 2023 and $8m in 2020.

This growth in average deal size suggests that investors are growing cautious and increasingly focusing on larger, more established RegTech companies, while smaller and riskier ventures face challenges in securing funding.

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

• The top 6 RegTech trends shaping regulatory compliance in 2025 - The RegTech sector has gained significant traction in the financial industry over the past few years, with global adoption accelerating. According to market projections, the RegTech market is expected to hit $25.19bn by 2028, driven by financial institutions’ need to navigate mounting regulatory pressures. Read the full story here.
• Shaping the future of fraud prevention with Open Source Intelligence - As consumer expectations continue to rise in step with regulatory demands, fraud and compliance teams face a pivotal challenge: how to scale operations without sacrificing security. According to Trustfull CEO Marko Maras, the key lies in leveraging open-source intelligence (OSINT)—a transformative tool that taps into publicly available data to deliver unrestricted, global insights. Read the full story here.
• Who’s been naughty or nice? Surveillance practices shaping compliance in 2024 - As the year draws to a close, it’s a perfect time to evaluate your company’s compliance surveillance and monitoring systems. Read the full story here.

Regulation news

• Hong Kong to enforce mandatory sustainability reporting by 2026 - Hong Kong has recently introduced a comprehensive roadmap to enhance sustainability disclosure among companies and regulated financial institutions. Read the full story here.
• FCA announces PISCES platform to open investment in private companies - The FCA has unveiled plans for the Private Intermittent Securities and Capital Exchange System (PISCES), an initiative aimed at transforming the private securities marketplace. Read the full story here.
• PSR proposes interchange fee cap to shield UK firms from rising card costs - The PSR has taken a significant step towards addressing competitive concerns in the UK’s card payment systems by proposing a cap on cross-border interchange fees. Read the full story here.

RegTech Deal news

• ViClarity links with Person Centred Software to boost care management efficiency - ViClarity has joined forces with Person Centred Software (PCS), a leader in digital care management systems. Read the full story here.
• Keepit secures $50m funding round to accelerate cloud-native innovation - SaaS data protection provider Keepit, renowned as the world’s only independent cloud-native backup provider, has raised $50m in its latest funding round. Read the full story here.
• Risk intelligence platform Bureau secures $30m Series B funding - Bureau, a risk intelligence platform focused on fraud prevention and identity decisioning, has raised $30m in its Series B funding round. Read the full story here.

CyberTech news

• SandboxAQ secures over $300m for advancing AI in key industries - SandboxAQ, a leader in the development of artificial intelligence applications, announced today a significant funding achievement, securing over $300m. Read the full story here.
• Cisco targets enhanced digital security with SnapAttack acquisition - Cisco, a global leader in networking technology, has revealed plans to acquire SnapAttack, a pioneering threat detection and engineering firm.?Read the full story here.
• Arctic Wolf enhances platform with Cylance acquisition from BlackBerry - Arctic Wolf, a provider in security operations, has announced its plan to acquire the endpoint security tool, Cylance, from BlackBerry for $160m. Read the full story here.

Other RegTech news

• How AI agents are transforming AML compliance and reducing operational risks - AI is making significant strides in the realm of financial crime compliance. Coined as ‘agentic AI’ or autonomous AI, these AI systems are designed to function independently with minimal human oversight. Read the full story here.
• The critical role of traceable compliance in financial services - In the complex world of today’s regulations, simple compliance checks and routine procedures no longer suffice. Read the full story here.
• Why early preparation for CSRD reporting in 2026 is essential for compliance - The Corporate Sustainability Reporting Directive (CSRD) is setting new standards for sustainability reporting across the European Union. Read the full story here.