IBM to Acquire Promontory in Move to Expand Regtech Reach

IBM will acquire Promontory Financial Group, a leading financial services consulting firm, in a move to beef up its presence in regtech, the use of technology to help banks and other companies reduce the cost and effort of complying with government regulations.

“It’s a smart move into automating compliance and regulatory obligations,” Kari Larsen, formerly in the Enforcement Division of the Commodity Futures Trading Commission and now a counsel focusing on regulatory issues at Reed Smith LLP in New York, told Bloomberg BNA. “The scope of what it would do is potentially just so broad.”

The savings for larger banks ...