The global Regulatory Technology (RegTech) market size is projected to reach US$ 10950 million by 2027, from US$ 2236 million in 2020, at a CAGR of 24.7% during the forecast period 2021-2027. An increase in collaboration between national regulators & financial institutions is expected to drive the growth of the RegTech market. RegTech has the potential to alter the regulatory landscape by providing technologically superior solutions to the financial industry's ever-increasing compliance demands.
Regulatory technology, also known as a "RegTech" is a new field within the financial services industry that utilizes information technology to enhance regulatory processes. It puts a particular emphasis on regulatory monitoring, reporting and compliance and is thus benefiting the finance industry. The objective of RegTech is to enhance transparency as well as consistency and to standardize regulatory processes, to deliver sound interpretations of ambiguous regulations and thus to provide higher levels of quality at lower cost. Oftentimes RegTech companies utilize the cloud through software-as-a-service. RegTech to date has been focused on the digitization of manual reporting and compliance processes, for example in the context of know your customer requirements. This offers significant cost savings to the financial services industry and regulators. However, a 2016 academic paper suggested that the potential of RegTech is far greater stating that "it has the potential to enable a close to real-time and proportionate regulatory regime that identifies and addresses risk while also facilitating far more efficient regulatory compliance".
With changing government policies and country rules, there is a growing need to improve the quality of reported data across multiple regimes and jurisdictions, which propels the RegTech market forward.
The rise in focus toward maintaining transparency in financial regulations will fuel the regtech market growth
Improved strategies for Know Your Customer (KYC) & Anti Money Laundering (AML) by implementing regulatory technologies are expected to drive the regtech market.
Increasing concerns about the General Data Protection Regulation (GDPR) in many locations, as well as the untapped potential of rising economies, are projected to present attractive prospects for RegTech market players.
The incorporation of GDPR into the Regtech offering is expected to drive the regtech market growth. The GDPR requirements have become mandatory for consumers' data as a result of the expansion of RegTech, which is altering the regulatory landscape by providing technologically enhanced solutions inside the financial industry. As a result, GDPR regulates the use of personal data and gives users the right to object to profiling, which is likely to open up the lucrative potential for the industry in terms of developing trust and service loyalty.
Companies will save money on compliance costs by employing regtech because it will be done automatically. It will also lower the amount of time required because the technology will make the compliance procedure easier. The company will be able to obtain a competitive advantage over its competitors as a result of this cost and time efficiency. This feature of regtech is expected to increase its adoption.
COVID-19 pandemic has a positive impact on the RegTech market, due to the increase in use and adoption of online and digitalized financial services. Furthermore, numerous countries have ordered lockdowns to prevent the spread of the virus; as a result, RegTech providers offering software-as-a-service platforms are gaining traction during the pandemic situation. As a result, amid the global health crisis, this has become one of the primary growth causes for the RegTech business.
Based on organizational size, In 2019, the large enterprise segment dominated the RegTech market, and this trend is expected to continue throughout the forecast period. This is due to the fact that businesses in this category deal with a lot of data and are consequently forced to implement regulatory programs. As a result, the large number of publicly traded companies in this industry underscores the relevance of RegTech solutions and services.
The main Regulatory Technology (RegTech) players include Bearingpoint, MetricStream, NICE Actimize, Broadridge, Traiana, etc. The top five Regulatory Technology (RegTech) players account for approximately 47% of the total global market. Europe is the largest consumer market for Regulatory Technology (RegTech) accounting for about 69%, followed by America and China. In terms of Type, Identity Management & Control is the largest segment with a share of 21%. And in terms of Applications, the largest segment is Large Enterprises, followed by SMEs.
This report focuses on the global RegTech market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Regulatory Technology (RegTech) development in United States, Europe and China.
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Report Metric |
Details |
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Report Name |
RegTech Market |
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The market size in 2020 |
$2236 Million |
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The revenue forecast in 2027 |
$10950 Million |
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Growth Rate |
CAGR of 24.7% from 2021 to 2027 |
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Base year considered |
2019 |
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Forecast period |
2021-2027 |
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Forecast units |
Value (USD) |
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Segments covered |
Type, End-User, Offerings, and Region |
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Market by Type |
Risk Management, Identity Management & Control, Compliance, Regulatory Reporting , Transaction Monitoring |
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Market by Applications/Enduser |
Small and Medium-sized Enterprises (SMEs), Large Enterprises |
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Report coverage |
Revenue & volume forecast, company share, competitive landscape, growth factors, and trends |
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Geographic regions covered |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
Ans. The global Regulatory Technology (RegTech) market size is projected to reach US$ 10950 million by 2027, from US$ 2236 million in 2020, at a CAGR of 24.7% during the forecast period 2021-2027.
Ans. The main Regulatory Technology (RegTech) players include Bearingpoint, MetricStream, NICE Actimize, Broadridge, Traiana, etc. The top five Regulatory Technology (RegTech) players account for approximately 47% of the total global market.
Ans. Based on organizational size, In 2019, the large enterprise segment dominated the RegTech market, and this trend is expected to continue throughout the forecast period.
Ans. Europe is the largest consumer market for Regulatory Technology (RegTech) accounting for about 69%, followed by America and China.
Ans. Increasing concerns about the General Data Protection Regulation (GDPR) in many locations, as well as the untapped potential of rising economies, are projected to present attractive prospects for RegTech market players.
Ans. The forecast period for the RegTech market is 2021 to 2027.
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