"2026 will be one of the most demanding regulatory years to date. Multiple major frameworks will come into force at the same time and will reshape how institutions manage reporting, data and risk," Elias Afxentiou, the CEO of Prognosys Solutions, proposes.
Sharing his view as part of the IN Business Forecasting 2026 series of interviews, Afxentiou also suggests that, "Mergers and acquisitions have become a defining feature of the global RegTech sector," going on to note that, "Given current conditions, we expect M&A activity within the RegTech sector to intensify further in 2026. The firms that can scale internationally and maintain sustainable growth will be the primary targets."
Among other things the CEO also reveals what to expect in terms of his organisation’s growth and expansion strategy in the new year.
How do you expect your company’s sector to move in 2026? What major trends or shifts do you anticipate and what do you see as the key challenges?
Regulatory change has defined financial services for more than a decade. The continuous expansion of compliance requirements has driven the rise of Regulatory Technology as institutions seek dependable and automated solutions. This trend will continue in 2026, even as European and national regulators take steps toward proportionality. We have already seen the first signs of simplification, such as the recent repeal of several returns by the Central Bank of Cyprus. Similar changes are emerging across Europe as supervisors acknowledge the operational burden on institutions.
Despite this shift in tone, 2026 will be one of the most demanding regulatory years to date. Multiple major frameworks will come into force at the same time and will reshape how institutions manage reporting, data and risk. Resolution Planning Reporting has been redesigned completely. The transition to NACE Rev. 2.1 took effect on 1 January. DAC8 introduces new obligations and closer alignment with MiCA and revised DAC2 requirements. From 31 March, all EBA submissions must use the XBRL-CSV format. At the same time, CRR3 delivers significant changes across Operational Risk reporting, the new Pillar 3 Data Hub and updated reporting for third-country branches.
This creates a heavy regulatory calendar with overlapping implementation timelines and strict milestones. While simplification remains the long-term objective, the transition period will be complex and resource-intensive for financial institutions.
Our position in this environment is strong. For more than 20 years, we have helped institutions manage regulatory change with certainty. Our solutions reduce operational pressure, support continuous compliance and allow organisations to focus on their core business. In 2026, this will be more important than ever.
A strong trend taking root in the Cyprus business landscape is mergers and acquisitions. Do you expect this trend to intensify in your own sector?
Mergers and acquisitions have become a defining feature of the global RegTech sector. Internationally, we see around 300 transactions per year, fueled by high investor interest in regulatory technology and the need for scale and sophistication. Cyprus has so far seen limited involvement in these global waves, but investor attention toward local firms is clearly increasing.
The most attractive candidates for potential acquisitions are the companies that have developed scalable solutions, built strong technology platforms and proven their ability to operate internationally. These firms stand out because they combine technical credibility with healthy export performance, which is precisely what global investors and funds seek.
Conversely, smaller or purely domestic players face growing pressure. Margin compression and scale limitations reduce competitiveness and make international investment less likely. As this gap widens, consolidation becomes a natural outcome.
Given current conditions, we expect M&A activity within the RegTech sector to intensify further in 2026. The firms that can scale internationally and maintain sustainable growth will be the primary targets.
What should we expect in terms of your organisation’s growth and expansion strategy in 2026? What actions do you plan to take in this direction?
In 2026, our focus will be on managing the significant regulatory changes that come into force. These reforms will naturally drive demand for stable, accurate and efficient regulatory solutions, and our priority is to support institutions through this period with precision and speed.
We will also continue strengthening our international footprint. Greece, Malta and the Middle East remain core markets for us. Rather than expanding into new jurisdictions, our strategy centres on deepening our presence in the jurisdictions we operate, increasing market penetration and growing our client base. This disciplined approach allows us to maintain operational excellence, invest in regulatory innovation and ensure consistent delivery across our client base.
By staying focused on these priorities, we are well-positioned for another year of solid, sustainable growth.
