London-based CUBE, a prominent global provider of Automated Regulatory Intelligence (ARI) and Regulatory Change Management (RCM), has expanded its footprint in the regulatory technology sector with the acquisition of Acin, a specialist in operational risk also headquartered in London. This strategic move bolsters CUBE’s capabilities by integrating Acin’s regulatory controls data network and its tools designed for comprehensive traceability into an already robust compliance infrastructure.

Acin’s platform leverages artificial intelligence to aid financial institutions in digitising non-financial risk analysis, notably enabling the calibration and sharing of control data across a network of such institutions. By benchmarking anonymised peer data, the platform offers enhanced insights to refine risk controls while ensuring data privacy is maintained. This acquisition is more than a mere expansion; it inaugurates a broader industry collaboration initiative spearheaded by CUBE, initially embraced by five major banks, with expectations of further participants joining over the next year. The initiative is aimed at fostering deeper cooperation in managing compliance and risk challenges across the financial sector.

Ben Richmond, Founder and CEO of CUBE, articulated the significance of this development, stating, “This is a significant step forward in how financial services firms across the globe can take a truly integrated approach to their compliance and risk management… What was once siloed knowledge can become collective intelligence for improving compliance and risk effectiveness industry-wide. Secure, data-driven collaboration isn’t just possible, it’s essential for the continued evolution of the industry.” Paul Ford, Founder of Acin, complemented this vision by highlighting that the merger will enable the growth and enhanced value delivery of their platform to current and future global clients, while also shaping the sector’s future.

This acquisition follows a sequence of significant deals executed by CUBE over the past year, including the procurement of Thomson Reuters Regulatory Intelligence and Oden, as well as The Hub, a firm known for its AI-driven solutions that capture and monitor unstructured regulatory data. Each acquisition has progressively expanded CUBE’s technological capabilities and market reach, enabling them to provide a comprehensive, data-driven compliance and operational risk platform, branded RegPlatform.

CUBE’s growth trajectory is impressive, with a workforce that now spans 700 employees across 20 countries and services approximately 1,000 customers worldwide. The company recently inaugurated a new global headquarters in London, which houses its AI Centre of Excellence, known as the RegBrain AI Lab. Looking forward, CUBE has announced plans to create 200 new roles in the coming year, with around half expected to be UK-based, underscoring its commitment to bolstering its capabilities and presence in the regulatory technology domain.

While the financial terms of the acquisition were not publicly disclosed, the cumulative effect of CUBE’s recent expansions solidifies its position as a leading player in the RegTech landscape. Its recent accolade as RegTech of the Year in the Asia-Pacific region further cements its reputation for excellence and innovation in transforming how businesses handle regulatory change in a rapidly evolving environment.

By weaving the strengths of various specialised acquisitions, including Acin’s operational risk expertise and The Hub’s AI capabilities, CUBE is positioning itself at the forefront of delivering integrated, AI-driven regulatory intelligence solutions. This integrated approach stands to not only improve compliance effectiveness for individual financial institutions but also foster an unprecedented level of industry-wide collaboration in risk and compliance management.

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Source: Noah Wire Services