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RegTech is composed of the words “regulatory” and “technology”. It is a collective term for the application of modern technologies, to get the increasing regulation in the banking- and financial sector under control both from an IT and a legal standpoint.
Introduction
Attitude of the country towards RegTech-services
Directions for the Development of the Financial Market of the Russian Federation for 2024 and the period of 2025 and 2026, as well as 2025 and the period of 2026 and 2027, developed by the Bank of Russia, it is planned to carry out consistent digitalization of regulation and supervision, which will optimize current processes, increase the efficiency of supervisory and regulatory activities, reduce costs and burden as on supervised organizations and on the regulator.
Meanwhile, the Bank of Russia has already implemented some projects in the field of RegTech.
In 2018, non-credit financial organizations were transitioned to reporting in accordance with a unified data collection model – the XBRL taxonomy of the Bank of Russia. In 2019, a new self-service analytics application called "Self-Service Analytics" was launched into industrial operation to enhance the efficiency of supervising the assessment of credit risk by credit organizations regarding portfolios of homogeneous loans and individual loans to individuals. This application represents an automated system for analyzing information on credit risk assessment (SupTech and RegTech development guidelines for the period 2021-2023, approved by the Bank of Russia in 2021).
Systems for automated collection and analysis of data on individuals or legal entities from various sources are being developed to verify the reliability of potential customers / counterparties (Know Your Customer), as well as monitoring systems for activity and transactions to detect and analyze anomalies in various areas and prevent violations.
Legal affairs
Obligations and requirements to provide RegTech-services
In September 2024, the law on experimental legal regimes in terms of the development, testing and implementation of digital innovations in the financial market came into force in the Russian Federation (Federal Law of 08.08.2024 N 223-FZ "On Amendments to Certain Legislative Acts of the Russian Federation"). This law introduces experimental regimes for Fintech processes, including RegTech, allowing the exclusion or modification of certain federal laws for pilot projects.
Additional comments regarding the legal situation for RegTech-services or what RegTech’s must be aware of in this business area
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Economic conditions
Market size for RegTech-services and biggest companies in this business area
At the beginning of 2025, the approximate estimates of the RegTech services market in Russia amounted to 66 billion rubles. At the beginning of 2025, the approximate estimates of the RegTech services market in Russia amounted to 66 billion rubles. The largest companies in this sector are: SKB Kontur, Center for Financial Technologies (CFT), Diasoft, ProgramBank, etc.