The countdown to the Digital Operational Resilience Act (DORA) has begun. As this landmark EU regulation takes effect on January 17, 2025, financial institutions across Europe are working to strengthen their digital resilience and compliance systems. But in the Czech Republic, the new rules aren’t just being seen as an obligation — they’re being embraced as a market opportunity.

For the country’s fast-growing RegTech and cybersecurity start-ups, DORA is opening doors. It’s driving demand for advanced risk-management tools, automated reporting systems, and cybersecurity services that help banks, insurers, and fintechs comply with Europe’s new digital-resilience standards.

Turning Compliance into Innovation

DORA is designed to make the EU’s financial sector more resistant to ICT-related disruptions — from cyberattacks and data breaches to system failures and third-party outages. The regulation establishes detailed requirements for ICT risk management, incident reporting, resilience testing, and oversight of technology providers.

For Czech start-ups specializing in regulatory technology and cybersecurity, this complexity represents a clear business case. Financial institutions must now upgrade or replace outdated tools, automate compliance tasks, and enhance monitoring systems. Start-ups that can provide cost-efficient, scalable, and audit-ready solutions are suddenly in high demand.

According to Copla’s overview of the DORA Czech Republic, the regulation is expected to reshape how local firms handle ICT governance and third-party risk. This shift creates new openings for companies offering regulatory automation, vulnerability testing, threat intelligence, and resilience analytics — services that are no longer optional, but essential for staying licensed and competitive.

A Strong Foundation for Growth

The Czech Republic already has a thriving tech scene. Prague and Brno are home to hundreds of early-stage start-ups, supported by accelerators, venture-capital funds, and university research programs. The country’s established reputation for software engineering and cybersecurity talent makes it well-placed to capitalize on the DORA wave.

Unlike traditional financial centers that rely on large compliance consultancies, the Czech ecosystem benefits from nimble, innovative tech firms able to move quickly. Many are already exploring RegTech applications such as:

• Automated compliance dashboards that track DORA obligations in real time.
• Cyber-risk scoring and monitoring tools to detect vulnerabilities before incidents occur.
• AI-based document management that streamlines audit preparation.
• Threat-led penetration testing (TLPT) platforms to meet resilience-testing requirements.

Because DORA applies not just to banks but also to insurers, payment institutions, fund managers, and crypto-asset service providers, the potential client base for Czech tech firms is wide. Even non-financial service providers — such as critical ICT vendors — will need DORA-aligned risk systems.

Regulators and Industry Aligned

The Czech National Bank (ČNB), which supervises the financial sector, has indicated that DORA’s application will be direct, meaning financial entities must ensure readiness without waiting for new national laws. However, ČNB is expected to issue additional guidance to clarify local supervisory expectations.

Industry bodies such as the Czech FinTech Association and the Czech Cybersecurity Alliance are already mobilizing. Workshops, training programs, and pilot projects are being launched to help institutions interpret DORA’s technical standards and identify trusted local vendors.

This collaboration between regulators, financial institutions, and start-ups is crucial. By working together, they can build a domestic innovation ecosystem that not only supports compliance but also strengthens the Czech Republic’s digital resilience overall.

Venture Capital and European Support

The timing is favorable. The Czech start-up scene has attracted increasing venture investment in cybersecurity and automation technologies, supported by EU innovation funds and national programs such as the Technology Agency of the Czech Republic (TA ČR).

Investors are paying attention: RegTech and cybersecurity are seen as high-growth sectors with predictable long-term demand. DORA’s implementation reinforces that trend by effectively mandating digital-resilience spending across the financial industry.

Start-ups that can position themselves as DORA-compliant solution providers stand to benefit not only from local contracts but also from cross-border scalability. Once validated in the Czech market, their tools can be marketed throughout the EU — where DORA’s requirements are uniform.

Practical Areas of Opportunity

For entrepreneurs and investors, several specific niches stand out:

1. Incident-reporting platforms: Tools that automate the collection and submission of incident data to supervisors within the tight DORA deadlines.
2. Third-party-risk management software: Solutions that track outsourcing contracts, subcontractors, and ICT providers across complex supply chains.
3. Operational-resilience testing tools: Platforms supporting penetration tests, scenario simulations, and performance stress tests.
4. Integrated compliance suites: Dashboards that bring together DORA, GDPR, and NIS 2 obligations into a single management interface.

Each of these areas aligns with DORA’s technical standards — and each offers fertile ground for Czech innovators who can deliver secure, cost-effective technology.

Challenges to Overcome

The opportunity is significant, but so are the hurdles. Many start-ups must still navigate regulatory complexity, client trust barriers, and scalability issues. Financial institutions tend to favor proven solutions, meaning new entrants will need strong partnerships and certifications to win contracts.

Another challenge is talent. As DORA increases demand for cybersecurity and compliance professionals across Europe, Czech firms will need to compete for skilled engineers and auditors. Expanding university-industry collaboration could help close that gap.

A Strategic Moment for Czech Tech

The Digital Operational Resilience Act may have been drafted in Brussels, but its entrepreneurial ripple effects are being felt in Prague and beyond. For Czech RegTech and cybersecurity start-ups, DORA is more than a regulation — it’s a market accelerator.

By providing the tools financial institutions need to meet Europe’s new resilience standards, Czech innovators can position themselves at the center of a growing EU-wide ecosystem. In doing so, they’re not just helping clients comply — they’re helping Europe stay digitally secure, connected, and competitive in a high-risk world.