What makes a compelling RegTech product and platform in 2025?

Key differentiators that drive internal growth and better client experience for regulatory reporting vendors

In recent years, the financial industry has faced increasing pressure to meet complex regulatory reporting requirements, especially in the wake of the global financial crisis. As regulations have evolved, firms are now required to provide detailed data on derivative products and other financial instruments, making transparency and risk management more important than ever.

This shift has created significant challenges for organizations, from managing vast amounts of data to interpreting ever-changing rules. Many struggle to keep up, and the need for reliable, innovative solutions has never been greater.

By taking a closer look at global reporting vendors, we aim to uncover what sets leading RegTech platforms apart in today’s landscape and what functions matter the most for end users. Whether you’re navigating regulatory hurdles or seeking to optimize your reporting processes, understanding these dynamics is key to staying ahead, and that’s exactly what this blog will explore.

Inside the regulatory reporting market

During our global reporter vendor research, we observed a wide range of products and modules shaped by each company’s core stage of growth and core clients’ needs.

Interestingly, the market isn’t heading in one clear direction. For example, 65% of the vendors that we analyzed offer a full pre-validation service. This might end up as a costly module, but is a critical component if vendors want to target high volume and more complex clients.

On the other hand, only 20% of vendors that we analyzed provide a managed services model – suggesting most players are still focused on selling products but haven’t expanded into building full-service platforms yet.

Are you a product or a platform?

Most vendors seem to sit somewhere between operating as a single product, a wider platform model, or a hybrid. And when you look closely, the traits of successful RegTech solutions aren’t so different from what makes any great product or platform thrive. Taking inspiration from the Harvard Business Review, we believe vendors should aim to:

1. Create a great product that passes proof of concept and works for multiple clients.

Before evolving into a platform, the product must stand on its own and deliver real value. 

2. Maintain relentless focus on value for both internal ROI and client outcomes.

This approach drives data quality for regulators, ultimately supporting market integrity and keeping clients satisfied.

3. Drive Annual Recurring Revenue (ARR) with existing and new customers.

• Keep your value proposition clear and consistent.
• Ensure your brand and user experience remain strong.
• Control operating costs – especially critical for vendors managing large datasets and volumes.

4. Never stop analyzing the market and regulatory updates.

SWOT, Porter’s 5 forces, and PESTEL remain tried and tested for staying ahead. 

5. Strike the right commercial balance.

Operate profitably while giving clients the flexibility they need to expand or enter new business lines with new reporting requirements. 

Investment priorities are changing

So, how are investment priorities shaping RegTech platforms? In terms of funding activity, Innovate Finance reported that global fintech investment (equity only, not including debt) reached $24 billion across 2,597 deals in the first half of 2025 – a 6% increase compared to the $22.4 billion recorded in the second half of 2024.

Notably, many investors and current stakeholders are shifting from topline growth to the underlying “substance” of companies and products. This emphasis is also among end users and vendors. M&A activity remains subdued, with few acquisitions taking place. Reporting platforms that consistently meet complex reporting requirements and integrate seamlessly with clients’ upstream systems are best positioned to succeed.

The bottom line

Most vendors operate as single products, broader platforms, or hybrids, but the core traits of successful RegTech solutions mirror those of any thriving product or platform. To excel, vendors should focus on building a product that delivers real value, maintain a relentless focus on ROI and client outcomes, and balance profitability with client flexibility.

But that’s not all. A compelling RegTech platform in today’s landscape is one that helps firms meet regulatory reporting obligations, supports growth beyond their current capabilities, and demonstrates expertise in both domain knowledge and broader market trends, including private equity activity and strategic partnerships.