RiskTech100® 2019

Welcome to RiskTech100® 2019 – the most comprehensive independent study of the world’s major players in risk and compliance technology. Now in its thirteenth year, RiskTech100® is globally acknowledged as the go-to place for clear, accurate analysis of the risk technology marketplace and the companies doing great things within it. Risk technology is a diverse, fast-moving space, and to keep pace with the latest trends in the market we are recognizing a record number of firms this year across a wide range of categories. Besides an updated ranking of the top 100 players in the sector for 2019, and our analysis of the major trends that have shaped the market in the past year, this year’s report also recognizes excellence in more than 40 award categories.

I’m also pleased to confirm that we continue our commitment to recognizing innovation from outside the RiskTech100®, with our latest roll-call of RiskTech ‘Rising Stars’. These firms are making their presence felt with innovative technologies and novel approaches to traditional risk methods, and by carving out profitable niches in a highly competitive market.

This is also a market in flux. Innovation abounds, and financial institutions around the world are continuing to transform their patterns of risk technology expenditure and usage. This shift is characterized by a number of key trends – the rapid rise of lighter, cloud-based solutions; the emergence of new and novel approaches; the exploitation and control of data to unlock greater efficiency and performance; and the measured approach we see toward more ‘magical’ technologies, like Artificial Intelligence (AI), which continue to set the tone for RiskTech innovation.

Indeed, the fevered dash for compliance that characterized the post-crisis era has given way to a more cautious enthusiasm, tempered by experience. Firms have a new realism about what technology can achieve, paying more attention to using the right tools for the right use cases on the right platforms. The impact of this ‘post-postcrisis’ wave of transformation is core to much of the work we are doing at Chartis – across our published reports and strategic engagements – to help our clients position themselves for success.

An important area of unrealized value remains AI, which continues to exert a powerful, transformative influence on the industry. Together with the broader set of statistical techniques it belongs to, AI has been a cornerstone of our 2018 research program, cutting across the risk technology landscape and its immediate adjacencies. It’s worth remembering, though, that AI itself – supposedly a novel technology – has many miles on the clock, originating in academic research from the mid-1950s. The AI revolution we are witnessing today is being driven by the confluence of two major factors – the emergence of more powerful computational technologies on affordable platforms, and the willingness of decision makers to invest in AI projects.

On this latter point, it seems to us that too often such decisions are made from a position of relative weakness when it comes to understanding what AI can truly achieve in a business context. The lack of real understanding here is important too, since continuing to invest large sums of money in transformative technologies that are not well understood simply cannot end well.

To address this risk, we have developed a unique taxonomy for Statistical Techniques and Open Risk Management – STORM – to help firms in all areas of financial services assess and make sense of the vast array of statistical methods now on offer. An article later in this report offers a taster of what STORM will bring. I hope you find it thoughtprovoking, and look forward to the continuing debate with our clients and network on what the AI revolution really means for our industry.

Transformation continues to be a strong theme for our business too, and Chartis has had much to celebrate in 2018. We continue to expand, welcoming Mark Feeley as our new US-based Research Director earlier this year. This key hire was further supported by the addition of several talented new analysts and the appointment of our new Research Principal, Stefan Wagner, to help us deliver a range of projects for our clients. You will also have noticed that Chartis has a new look, another aspect of the ongoing investment we are continuing to make in our business.

We hope you like these changes, and look forward to working with new and existing clients in the year ahead. Enjoy the report!

Rob Stubbs, Head of Research