Revolut, a ‘super app’ provider and the UK’s most valuable digital banking startup, has contracted with RegTech Cube to monitor evolving financial and economic regulations as the company continues to unveil its products globally.
Cube uses a combination of artificial intelligence and natural language processing to review and classify regulatory standards across 180 countries in 60 languages. Once surveyed, the standards can then be mapped to customers’ enterprise-wide compliance frameworks.
For Revolut, which has been growing at a rapid scale across markets and product offerings, the tech will offer a crucial service to keep the company ahead of any regulatory curves and can even anticipate upcoming trends to mitigate violations.
“Revolut’s global horizon scanning and regulatory mapping processes are powered through a seamless API integration with Cube’s RegInsight and RegBook, enabling Revolut to grow at pace whilst keeping up with the ever-evolving regulatory landscape,” Harry Gill, group head of regulatory compliance at Revolut said.
Following its SoftBank-led $800 million Series E in July, Scott Shleifer, partner, Tiger Global (who also participated in the round) said the raise put the company in a strong position to continue scaling in both existing and new geographies. Revolut’s CEO and Founder, Nikolay Storonsky and Karol Niewiadomski, senior investor for SoftBank Investment Advisers, echoed similar sentiments after the company was valued at a whopping $33 billion.
At the time, Revolut had revealed it set its sights on US offerings and entry to India following further expansion.
The necessity for RegTech has only been heightened in recent years with the popularity of cross-border payments and global acquisitions. A report by ResearchAndMarkets estimated the global fintech market was valued $5504.13 Billion in 2019 and is expected to grow at CAGR of 23.58% through 2025 thanks to infrastructure-based technology and APIs “reshaping the future of financial services industry” and its global footprint.
“Furthermore, financial technology companies are delivering low-cost personalized products on account of emerging developments in the technology sector, leading to rising customer expectations, thereby, boosting the market growth globally,” the report said.
But the need for increased RegTech remains. In October, Monzo, the UK-based digital only banking entity announced withdrawing its bid for a U.S. banking license following more than a year of discourse with regulatory authorities. And as more fintechs integrate with banks, the OCC, Federal Reserve and FDIC signed off on Thursday a new rule that requires banks to report any major cybersecurity incidents to the government within 36 hours of discovery.