As banks face massive lawsuits over compliance failures, companies providing RegTech solutions are seeing growing demand. These stocks represent the essential technologies financial institutions need to prevent the next multi-billion dollar scandal.
Published on July 2
With banks facing multi-billion dollar lawsuits, compliance tech has shifted from a cost center to a mission-critical investment. These companies provide the shields banks can't afford to skimp on.
Financial regulations are only getting stricter after scandals like 1MDB. Companies providing compliance solutions are riding a wave that shows no signs of breaking as enforcement intensifies.
While fintech payment apps get the spotlight, these behind-the-scenes compliance technology providers perform the critical work that keeps the entire financial system secure and trustworthy.
The $2.7 billion lawsuit against Standard Chartered Bank over the 1MDB fraud scandal is forcing financial institutions worldwide to dramatically upgrade their compliance systems. This creates a powerful growth opportunity for companies providing the technology that detects and prevents financial crime.
This collection focuses on companies that provide essential regulatory technology, from identity verification and Know Your Customer (KYC) solutions to AI-powered fraud detection and transaction monitoring. These technologies are becoming non-discretionary investments for banks facing severe financial and reputational risks.
These companies were specifically selected because they provide the critical RegTech solutions that directly address the compliance weaknesses exposed by high-profile failures like 1MDB. As regulations tighten and enforcement increases, these providers stand to benefit from a sustained industry-wide spending cycle.
Market capitalisation breakdown for the Financial Crime & Compliance basket.
ACIW: $5.12B
MITK: $442.32M
EFX: $28.14B
Get the full story on this Basket. Read our detailed article on its risks and potential.
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Part of Exinity Group 2015, serving over a million customers globally.
Earn 6% AER on uninvested cash with daily interest payments.
+6
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ACI WORLDWIDE INC
ACIW
Current Price
$52.33
Its fraud detection and payment monitoring solutions are crucial for banks strengthening their compliance frameworks in response to scandals like 1MDB...
Its fraud detection and payment monitoring solutions are crucial for banks strengthening their compliance frameworks in response to scandals like 1MDB.
EQUIFAX INC
EFX
Current Price
$192.49
Its identity management solutions help financial institutions verify customers and mitigate fraud, addressing a core weakness highlighted by the lawsu...
Its identity management solutions help financial institutions verify customers and mitigate fraud, addressing a core weakness highlighted by the lawsuit.
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Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.
If you invested across these assets:
In 12 months it might be worth:
+42.82%
On average, analysts expect assets in this group to grow 42.82% over the next year.
14 of 16 assets in this group are rated Buy by professional analysts.
