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Artificial intelligence, key driver of regtech

Artificial intelligence is one of the key drivers behind regtech. Already widely discussed in financial institutions, application of AI in regtech has the ability to improve data governance, business risk and regulatory compliance. Steps beyond Robotic Process Automation (RPA) will lead to more tangible business benefits from regtech. But the investment in the new technology needs to occur first.

CB Insights released an infographic showing the AI disruptions across industries such as IoT, Cybersecurity and Risk and Compliance. Here we look deeper into their top picks for companies working in AI in risk and regulatory compliance.


WorkFusion (New York, USA) has intelligent automation software which provides all the capabilities enterprise leaders need to digitize business processes, with solutions that use robotic process automation (RPA), artificial intelligence, chatbots and the crowd. Robotic process automation tools and AI are both used to automate systems for recording or storing data, reporting or other compliance tasks. Using two or more systems get complicated. When pairing RPA and AI, a custom tool is needed. Compatible solutions are needed in the regtech space to work towards a streamlined risk and compliance function.

‘WorkFusion is taking a data-first approach using AI to manage and process any data you throw at it.’


Onfido (London, UK) runs a program which delivers background checks to verify anyone, anywhere. The identity verification technology uses AI algorithms to match a photo-based identity document with a selfie. In 2017 the company raised more than USD 30 million to improve their technology. Based out of London, Revolut app-based bank is a fellow British customer. Onfido’s regtech solution established compliance with Know Your Customer regulations while also working against risk and fraud.

Text IQ

Text IQ (New York, USA) employs AI to protect its clients against compliance and legal disasters. The company’s software uses big data analytics to identify sensitive or compromising documents. It is one of the fastest-growing B2B technology companies in Silicon Valley, according to Cision. Text IQ’s AI combines language analysis with network relationship analysis. This creates manageable tasks for human workers. The focus on how AI and humans can work together is a constructive one.

Merlon Intelligence

Merlon Intelligence is a global compliance technology company working in the financial services industry. The company specializes in customer risk assessment and the associated potential for financial crime. Focussing on transforming how financial crime and compliance is managed, AI has a central role. Coordination between regtech solution is key. Merlon Intelligence says a full suite of AI solutions is their ‘mission.’


Socure (New York, USA) works towards identity verification and fraud prevention. A lading digital ID verification provider, the company uses AI and ML to analyse trusted online and offline data such as social media accounts to develop predictive analytics. The unbanked or underbanked have little to no traditional data useable for verification purposes. This is common for millennials, a massive, growing market segment. As such, Socure’s intelligence goes beyond credit ratings to use offline and online data from both public and private sources. Identity and security processes are a huge focus for financial institutions to avoid regulatory infringements as well as fraud.

By Grace Appleford, Research Analyst.

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