The global market for the Growing compliance expenses and mandatory sandbox approach is fuelling growth in RegTech is anticipated to develop at a compound annual growth rate (CAGR) of 21.3% throughout the course of the forecast, to reach $26.4 Billion by 2030.
The global RegTech (Regulatory Technology) market is anticipated to grow at a staggering growth rate in the next few years. This is attributed to the increasing demand for mandatory intelligence and high compliance expenses within the organizations. RegTech is a sub-segment of financial technology (FinTech) and has achieved significance since 2015. Increasing penalties for non-compliance with guidelines are expected to further augment the industry growth. RegTech solutions facilitate real-time compliance analysis that integrates businesses and regulators while protecting consumer interests.
The Institute of International Finance (IIF) has termed RegTech as the application of technologies in order to meet regulatory and compliance needs more effectively. It includes the use of various tools to improve the severity of mandates and reduce the compliance threats concerned with the organization. As per the World Bank statistics, a robust compliance framework can improve the GDP growth by around 2 percent annually. Furthermore, along with the increasing demand for risk management, the growing demand for mandating business procedures and additional expenses of handling compliance procedures is likely to boost the RegTech market growth from 2019 to 2025.
Increasing GDPR concerns within nations to induce financial institutions to implement mandatory guidelines is expected to drive the RegTech Market
The compliance expense associated with financial institutions has grown radically in the past few years. A decrease in the compliance failure and expenses provides improvements in business procedure, in terms of better response times, and enables improved ROI (Return on Investment). The governments throughout the globe are promoting the implementation of Regulatory Technology by creating Know Your Customer (KYC) certificate compulsory prerequisite for financial transactions and opening bank account. KYC indulges financial institutions to classify their clients’ personal details such as an address, name, birthdate, nationality, and more. Adoption of management solutions ansd identity control has grown due to the adoption of KYC procedures and is anticipated to have a remarkable impact on the FinTech industry by eliminating fraudulent actions.
Technologies that include machine learning, artificial intelligence, and more, are used in most of the RegTech solutions. These technologies have enabled advancements in RegTech solutions for improved fraud identifications. Additionally, it can be used for several information sets in miscellaneous data sources including social media to provide quick results for identifying threat activities.
Large Enterprises are likely to possess the largest market share for RegTech market
The large enterprises to hold the largest share for the regulatory technology in 2018 due to the increasing implementation of compliance and risk management solutions within various industry verticals. Organizations that are engaged in offering consulting services including Deloitte, Thomson Reuters, PwC, and IBM, enable large enterprises to apprehend the advantages of effectively handling their business functions. Growing demand for RegTech applications has fortified these organizations to adopt a robust compliance framework. Additionally, the application of workflow automation, advanced analytics, and Robotic Process Automation (RPA), is anticipated to facilitate the digitalization of risk and compliance management operations.
North America to hold the top position in this market
North America is likely to witness the largest share from 2019 to 2025. The aim of reducing fraudulent activities is promoting the regional demand for regulatory technology. Moreover, the increasing list of mandatory necessities within the financial sector is amongst an essential factor in enhancing industry growth. For example, the United States House Committee on Financial Services presented the Dodd Frank Act which consists of 2,300 pages long. Issues concerning the satisfactory adoption of such complex compliance requirements are some of the essential factors augmenting the market demand.
Key Market Players
• Abside Smart Financial Technologie
• NICE Actimize
• London Stock Exchange Group (LSEG)
• Broadridge Financial Solutions Inc.
• RIMES TECHNOLOGIES CORPORATION
• Wolters Kluwer
• Compendor GmbH
• Infrasoft Technologies
• Deloitte Touche Tohmatsu Limited
Key Segment Of The RegTech Market
By Application, 2022-2030 (USD Million)
• Regulatory Intelligence
• Identity Management
• Compliance And Risk Management
• Fraud Management
• Regulatory Reporting
By Deployment, 2022-2030 (USD Million)
• On Cloud
• On Premise
Regional Overview, 2022-2030 (USD Million)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
Middle East and South Africa