Name Price24H (%)
Bitcoin (BTC)
Ethereum (ETH)
Litecoin (LTC)
RegTech Market Forecast by 2027

RegTech Market Forecast by 2027

Based on a recent report by Reports and Data, the global RegTech market is expected to reach USD 21.73 Billion by 2027.

Regulatory Technology, in short regtech, is the use If technology to solve regulatory problems, including risk and compliance management, identity management, regulatory reporting, anti-money laundering (AML), fraud management, and regulatory intelligence. It helps to automate and streamline processes that financial organizations have in place, making them more efficient.

Regtech, consists of a group of companies that use cloud computing technology through software-as-a-service (SaaS) to help businesses comply with regulations efficiently and less expensive, with special emphasis on regulatory monitoring, reporting and compliance and is thus benefiting the finance industry.

Just like blockchain, the aim of RegTech is to enhance transparency, consistency and to standardize regulatory processes, to deliver sound interpretations of ambiguous regulations and thus to provide higher levels of quality at a lower cost.

It’s is a community of tech companies that solve challenges arising from a technology-driven economy through automation.

Employee surveillance, compliance data management, fraud prevention, and audit trail capabilities, are projects that regtech can automate.

Regtech leverages a combination of emerging technologies, such as artificial intelligence (AI)/machine learning (ML), natural language processing (NLP), distributed ledger technology (DLT), big data, and more to address the diverse requirements across each application.

Increasing demand for RegTech, owing to looming regulatory burden, is a vital factor in driving the market growth. According to the study, the cost of compliance across all banks from 2014 to 2016 averaged approximately 7.0% of their noninterest expenses. This regulatory burden was much larger for smaller banks with assets below USD 100.0 million, and the cost of compliance averaged about 10.0%. In 6contrast, expenses for banks with assets of USD 1.00 billion to USD 10.0 billion averaged a little above 5.0%.

READ  Provenance won 1 million euro prize from the European Commission 

Additionally, increased funding for RegTech is an instrumental factor in boosting market demand As the FinTech industry of India get regulated with newer laws, the funding into the RegTech startup witnessing an increase. The private funding into the RegTech industry in India increased by more than five times at USD 43.5 million in 2019 as compared to USD 7.3 million in 2018. A few of the top-funded Indian RegTech startups include CrediWatch, Simility, Fintellix, and Digio, among others. Besides, investments in Fintech firms and startups worldwide increased more two-fold to USD 15.00 billion in 2017, whereas, in 2018, it was USD 31.00 billion, which in turn, is driving the growth of the market.

Financial crime rates have not only risen during the past few years in the regulatory technology (RegTech) solutions market, but also become more complicated and hard to detect. Hence, companies are overcoming these issues with heavy-handed governance and incorporation of stricter compliance requirements. However, with rapid growth of the fintech industry, companies in the market for regulatory technology (RegTech) solutions are pressured to keep pace with the ever-evolving industry needs. There is a need to find new guidelines that prevent financial crimes without impeding new industry expansion.

The regulatory technology (RegTech) solutions market is expected to reach ~US$ 21.73 Bn by the end of 2027.  Hence, companies are adopting risk-based compliance measures instead of rule-based models to process large volumes of data that ensure operational efficiency. The market for regulatory technology (RegTech) solutions is witnessing change by switching to digital technologies.

READ  China Implements Blockchain Invoicing in Beijing for More Transparent Governance

The deployment of information technology in financial institutions to cater to tighter regulatory standards is poised to continue to grow in the current year. Even though, owing to the uncertainty about COVID-19, the adaption rate is very much unclear.

Leave a Comment

Your email address will not be published. Required fields are marked *