The Federal Reserve’s move to reshape bank supervision into five state-based hubs has turned regulatory plumbing into front-page risk. As oversight tightens and exam expectations shift, banks and their vendors face fresh scrutiny, higher complexity, and new decisions about where to spend every compliance dollar. This article walks through three U.S. RegTech stocks exposed to that reset and explains how this Fed rethink could matter for your portfolio decisions.
The three stocks highlighted below are just a first cut from this Fed-driven RegTech reset. The full screen surfaced 20 more U.S.-listed regulatory reporting and compliance providers with equally compelling narratives that are not covered here.
To see the broader peer group and identify your own highest conviction ideas, go straight to the U.S. RegTech and Regulatory-Reporting Software Providers screener.
Genpact (G)
Overview: Genpact provides digital transformation, AI driven operations, and process management services that help large enterprises, including banks, run compliant, data heavy workflows.
Operations: Genpact generates about $1.39b from Financial Services, $1.79b from Consumer and Healthcare, and $2.07b from High Tech and Manufacturing clients.
Market Cap: $5.6b
Genpact matters in this RegTech focused list because its AI and process platforms often sit inside the reporting, risk and compliance plumbing banks now need to upgrade as Fed supervision tightens.
"The rising share of annuitized, non FTE and outcome based contracts, with non FTE revenue surpassing 50% of total revenue in Q2 2026 and more than 70% of ATS revenue both annuitized and non FTE, increases the potential for more recurring revenue and steadier earnings over time."
What happens to Genpact’s margins and contract economics if a single key assumption about how banks modernize their finance stack breaks?
If that core assumption even partly misfires, the full narrative for Genpact shows how Genpact’s model could still accelerate or stall in surprising ways.
ExlService Holdings (EXLS)
Overview: ExlService Holdings runs data and AI driven operations for insurers, healthcare payers and banks, including regulatory, reporting and compliance heavy workflows.
Operations: EXLS generates about $758 million from Insurance, $587 million from Healthcare and Life Sciences, $505 million from Banking, Capital Markets and Diversified Industries, and $387 million from International Growth Markets, with roughly $1.85b coming from North America.
Market Cap: $5.37b
ExlService Holdings matters in this RegTech focused screen because its analytics and AI driven operations plug into finance, risk and reporting tasks that banks need to keep regulators comfortable as the Fed’s new hub model tightens expectations.
"Five years of mix shift into AI-led work has produced no gross margin expansion, and contracts are terminable without cause."
What happens to ExlService Holdings’ earnings power if one unseen pressure in those long running, regulation linked workflows suddenly shifts?
That pressure point is the real hinge for EXLS, and the full narrative for ExlService Holdings shows where contract risk might actually be masking upside in those long running workflows.
Broadridge Financial Solutions (BR)
Overview: Broadridge Financial Solutions runs investor communications and regulatory technology that help banks and brokers handle required reporting, governance, and securities processing.
Operations: Broadridge generates about US$5.56b from Investor Communication Solutions and US$1.92b from Global Technology and Operations, mostly from U.S. clients.
Market Cap: US$17.91b
Fed supervision is getting tighter and messier, which pushes more banks toward Broadridge Financial Solutions for digital proxy, reporting, and compliance heavy workflows.
"The continued shift toward digitization of financial services, supported by Broadridge Financial Solutions reporting proxy digitalization near 95% for equities and 80% for funds and more than 10% annual growth in customer communications digital revenue for four consecutive years, is increasing the mix of higher value digital services that can support recurring revenue growth and operating margin expansion."
The real swing factor is what happens to that earnings mix if one key driver of banks’ demand for deeper automation shifts course.
If that demand driver really is shifting, the full narrative for Broadridge Financial Solutions shows where Broadridge Financial Solutions’ regulatory moat could be accelerating faster than the headline story suggests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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