At this point you will probably know Marvel Entertainment has included a new member to its Super Heroes Squad. We won’t spoil you so you’ll have to wait until ‘X-Men’ #18 comic launch to figure it out. Nevertheless, is another X-ISSUE we want to talk about in this post. Probably is not so glamorous as the Marvel men and women, and not so eager to save this or other worlds from a wicked evil, but sure is focused in making this world and its business safer and more profitable. We are talking about X-TECH.

IT industry coins neologism all the time. A recent trend is adding the (—TECH) suffix to a name to a traditional segment of activity (Finance, Insurance, Legal, Regulatory, Real Estate Property…) But adding the name is not enough.  The crux of the matter is how those segments leverage the huge possibilities offered by the latest technological advances, creating sometimes subsegments of economic activity. Let’s take a quick outlook on what X-TECH is and why are in the spotlight.


The union of finance and technology through digitization encompasses all the products or services that the financial world can provide. From investments and payments, to savings tools to help in personal finances, also tax and accounting. In this issue technologies such as machine learning, big data, blockchain, customer onboarding —among many others— are being used. The aim is to improve services and help companies reach more consumers and offer a better product. All in a digital way as we mention. 


InsurTech gives us the chance to create new products related to the world of insurance. This ranges from more personalized insurance tailored to individuals, to offering paying as a service (PaaS) insurance even with no intermediaries. We should add to the above mentioned IT concepts others like consumer wearables, and smartphones apps to transform the way Insurance companies are planning future business.


LegalTech is related to the legal business and legal world. They use technology such as blockchain, digital identity management or big data to manage the legal world. For example, for the review of jurisprudence, the drafting of contracts or any litigation. Legal consumers are managing their legal work digitally like never before. Law firms have become less tech-averse, and leading businesses have spent the time wisely making their workflow more efficient.


RegTech refers to the use of technology such as advanced analytics, robotic process automation, cognitive computing and cloud computing, to help financial services firms get better at dealing with regulation, risk management and regulatory compliance. Improving customer onboarding processes is RegTech, as it is also preventing money laundering and fraud. RegTech is cross-cutting, needs the collaboration across of several parts, such large consultancies, banks, regulators and RegTech firms.


PropTech matches everything related to the world of Real Estate Property, i.e. property management with the use of new technologies, for example esignature. These allow, for example, the valuation of assets in real time or the management of different real estate assets. The emergence of user-focused, big data in the occupier markets, combined with the digitization of letting, financial and legal processes, will allow the new wave of PropTech adoption to reshape the real estate industry with their innovative business models. 

The arrival of X-TECH companies has been disruptive, and we mean it. Some figures back up this argument. Let’s see any of them. FinTech has altered financial markets, among traditional financial organizations, 82% plan to increase collaboration with fintech providers in the next three to five years. The reason is many companies are fearful to lose out their business.  Even last year, the InsurTech funding finished 2020 at a record high, with US$7,1 billions across 377 deals, this is a 12% increase in funding and 20% in deals compared to 2020. Last fact, the last ten years have seen a 500% increase in regulatory changes in developed markets, and financial institutions allocate around 10-15% of their employees in tasks like governance, risk, management and compliance. In the period 2009 – 2020, regulators in Europe and the US would had imposed fines on banks close to US$ 400 billions.

As we said above, a new superhero is in the block. Not the one from the comics or the movies, but a corporate one, and could be you or your business. The company who will rely on the right suppliers and IT partners will be endowed with the superpowers of digitization leading its segment through the X-TECH approach. Do you wanna be the next X-TECH Master of the Universe?


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