- Regtech firm ClauseMatch expands to the US by inaugurating its New York office.
- After the American Dept of Justice imposed new guidelines for banks, the demand for digital compliance systems skyrocketed therefore making it an entrypoint for startups such as ClauseMatch to get a slew of clients.
- ClauseMatch just graduated from Accenture-backed Fintech Innovation Lab where it got advice from top executives from tier-1 banks on tailoring its service for the American market.
While banks and financial institutions have been largely traditional with respect to operations, the past few years have seen a sudden surge in tier-1 firms embracing modern technologies such as artificial intelligence (AI), blockchain, and automation in a bid to make admin tasks increasingly efficient.
Now, to meet the escalating demand for regtech services globally, ClauseMatch, the AI-powered compliance platform announced the launch of its third office in New York therefore extending its client pool from the UK, Europe, and South-East Asia to the US as well.
Essentially, ClauseMatch’s AI-powered document collaboration platform “enables work with smart connected policy documents in real-time,” alongside mapping them with “regulatory obligations applying machine-learning algorithms on a granular level,” the firm said in the statement.
This new move comes at a time when the global pandemic has posed a host of challenges for compliance workforce in businesses such as remote working coupled with the need for stricter compliance with government regulations.
In addition, the US Department of Justice released new regulations for corporate compliance to ensure better implementation and good practice stating that digitalization is crucial going forward.
Commenting on this expansion, CEO & Founder ClauseMatch Evgeny Likhoded said:
“With daily changes happening in the global arena, it is imperative to be able to adapt quickly and communicate better with employees. Through our platform, business continuity plans and disaster recovery policies could be updated and communicated to everyone in real-time, so people in compliance can work smarter and concentrate on higher-value tasks.”
Echoing a similar sentiment, head of US Branch Rich Heller commented:
“With fast-changing regulations, especially in the current crisis, risk and compliance continue to be the biggest concern for financial institutions. We see an increasing demand and appetite for the kind of technology we offer from banks of all sizes and insurance companies. It is definitely the right moment to enter and serve the North American market now.”
Regtech sector witnesses a boom amid the Corona crisis
ClauseMatch is indeed going from strength to strength as it was also shortlisted along with 9 other startups to be a part of the incubator program run by the Partnership Fund for New York and Accenture called the FinTech Innovation Lab. With the feedback of high-ranking executives from top tier banks, the company was able to offer its compliance platform and even sign contracts with American banks.
“Technology that more efficiently facilitates compliance with regulatory requirements was a priority for the financial institutions in our FinTech Innovation Lab, who selected ClauseMatch for the 2020 class,” said Maria Gotsch, President and CEO of the Partnership Fund for New York City. “We’re excited that ClauseMatch is entering the U.S. market by opening an office in New York at a time when new activity and jobs are so important for our local economy.”
The firm, which helps banks and finance firms ensure complete compliance with government regulations, boasts of clients in the likes of banking giants such as Barclays as well as fintech firm Revolut.
Describing its role at Barclays, the firm detailed that already used by all risk and compliance departments the platform allows the bank to manage global policies in real-time. “This helped to reduce the annual policy refresh cycle by 40%,” and ClauseMatch’s compliance reports reduced manual work by 85%, it said.
Reiterating the urgency of an efficient compliance platform, US-based GRC expert Michael Rasmussen added:
“North American organizations are being hammered with regulatory obligations and oversight for compliance, particularly in financial services. They need efficient, effective, and agile ways to manage regulatory obligations and governance documents such as policies.”
With the need for stricter regulation compliances by governments globally, it’s no secret that demand for regtech firms will keep escalating making most tasks automated in the future.