Quiet closure with no public announcement · Fatal mistake: Ecuador's SB (Superintendencia de Bancos) only supervised 60 financial entities; market too small for standalone RegTech; deloitte and PWC Ecuador bundled compliance tools with audit contracts
Evaluating only RegEC’s profile at its peak — without knowing the outcome — the model ranked Market too small as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
FUNDING
MILESTONE
CRISIS
SHUTDOWN
Full Analysis
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Documented cause
RegEC built AML and regulatory compliance automation for Ecuador's financial sector. The SB supervises 60 entities — banks, cooperatives, and insurance companies. 45 of these used Deloitte or PwC Ecuador compliance tools bundled with audit contracts. The remaining 15 smaller entities could not afford a standalone SaaS subscription. RegEC's addressable paying market was structurally empty.
Lesson
“RegTech in Ecuador must target the cooperative sector (700+ SB-supervised cooperatives) rather than banks — cooperatives have compliance needs, less Big Four dependency, and are underserved by existing tools.”
Failure anatomy
Collapse type
Silent Shutdown
🐌 LOW
Hype cycle
None
Moat type
Technology
Fatal mistake
Ecuador's SB (Superintendencia de Bancos) only supervised 60 financial entities; market too small for standalone RegTech; deloitte and PWC Ecuador bundled compliance tools with audit contracts