Corlytics and Clausematch Come Together to Redefine RegTech

RegTech
05.07.2023 07:20 am

Already an undisputed leader in RegTech, this latest addition of Clausematch to the Corlytics family positions the newly formed Group as a global pacesetter. Further ambitious growth is planned over the next two years as the global RegTech market is estimated to grow at CAGR of 53%.

Corlytics’ proven intelligent regulations and regulatory data, now combined with the Clausematch capability of creating, maintaining and mapping intelligent regulatory documents and policies, marks a breakthrough for the RegTech industry. A point of acceleration following years of learning and development, Corlytics has brought together its suite of best-in-class technologies and IP to make this possible.

The expanded Corlytics Group offering manages the entire regulatory management value chain from regulatory monitoring, regulatory change management, policy management to attestation. The Group operates at global Tier 1 organisations.

Plugged directly into international regulators, Corlytics is the only solution that enables clients to align with, and stay ahead of, regulatory demands that now include growing levels of proof of compliance.

Clausematch founder and CEO Evgeny Likhoded will take up the newly created position of President of Corlytics. Tasked with partnering with clients that are the world’s largest banks, insurers and payment companies, Likhoded will be responsible for ensuring that Corlytics can act as a strategic partner to solving clients’ regulatory technology challenges and managing the scope of Corlytics’ portfolio of solutions accordingly. The acquisition brings the combined number of clients to 80, including 14 of the world’s top 50 banks.

Meanwhile, John Byrne will be driving the vision, growth strategy and profitability as CEO of the enlarged group.

A complementary offering

Following exceptional growth and the successful acquisition of ING SparQ in January 2023, the integration of Clausematch combines two well-respected players in the marketplace.

Corlytics’ CEO, John Byrne, said, “Corlytics’ second acquisition of the year, this deal marks a new milestone in the growth journey of our platform. We are thrilled to incorporate Clausematch into next level of growth and welcome Evgeny Likhoded as our new President.

Byrne continued: “Clausematch has a proven track record as a global RegTech leader, and the synergies are obvious especially amongst our joint customer base. Clausematch will continue its ongoing work with existing clients and extend our reach to 14 of the top 50 global banks. We look forward to bringing the RegTech industry to the next level of maturity – providing a one-stop-shop RegTech solution that meets and exceeds evolving regulatory needs.”

Clausematch’s founder and CEO Evgeny Likhoded added, “Clausematch was built out of frustration at the inadequacy of existing legacy and incumbent solutions on offer for compliance and legal departments. The value of our offering was quickly recognised, and Clausematch has since become a market leader in the new generation of policy management and compliance software.

“We are incredibly proud to join forces with Corlytics on the next stage of our journey. Our clients have been asking for the integration of regulatory content into our platform for a long time. By combining and accelerating our products and client relationships, we will drive a revised compliance operating model and unlock new value for our esteemed clients, redefining the RegTech landscape. Through the combined products, our clients will be able to show to the regulator how a regulatory change is assessed, implemented and communicated internally and be able to provide compliance attestations in a single platform. It’s a first-of-a-kind offering that does not exist today and it will change how financial services firms manage compliance.”

Both companies have made significant investments into AI and Machine Learning through the work they’ve done directly with global regulators and their clients. The acquisition will bring both teams’ years of development and proprietary AI models enabling classifying, tagging and mapping regulatory content to help with making sense of the regulatory and compliance content.

The regulatory management imperative

Regulators are increasingly digitalising regulations and require a higher standard of management and proof (attestation) of compliance. This is the most recent – and highest value – demand from regulators that firms are struggling to meet.

The acquisition positions Corlytics as a partner not only for all regulatory monitoring and compliance operations, but also in supporting regulatory attestation within the entire governance, risk and compliance (GRC) and enterprise risk management (ERM) universe. Corlytics augments firms’ existing investments in GRC & ERM, using intelligent data to make regulatory compliance management more effective and efficient.