DUBLIN--(BUSINESS WIRE)--The "Global RegTech Market Size, Share & Industry Trends Analysis Report By Component, By Application, By Vertical, By Deployment Mode, By Organization Size, By Regional Outlook and Forecast, 2021-2027" report has been added to ResearchAndMarkets.com's offering.
The Global RegTech Market size is expected to reach $22.3 billion by 2027, rising at a market growth of 19.8% CAGR during the forecast period.
RegTech is an amalgamation of the words regulatory and technology. It uses advanced technologies to manage regulatory processes in the financial industry. Its objective is to assist businesses in complying with rules in a more efficient and cost-effective manner. Machine learning, biometrics, cloud computing, big data, and blockchain are all examples of advanced technology used in RegTech. Data analytics, regulatory monitoring, risk management, reporting, regulatory compliance, and fraud detection are also important RegTech tasks.
Regulatory organizations in Asia-Pacific, the United States, and Europe are always seeking ways to collaborate with the fintech sector around the world. Furthermore, this strong desire to engage between the fintech community and regulators strives to create a win-win situation for both businesses and governments. The Global Financial Innovation Network (GFIN), for example, was formally founded in January 2019 by an international coalition of financial regulators and affiliated organizations with the goal of fostering financial innovation in the interests of consumers. Furthermore, the GFIN aims to provide an effective way for innovative companies to communicate with authorities, assisting them with novel business models in several jurisdictions. As a result of the increased collaboration between national regulators and financial institutions, the RegTech industry is expected to rise over the forecast period.
As government policies and country rules change, considerable demands to increase the quality of reported data across numerous regimes and jurisdictions continue to emerge in the industry, propelling the RegTech market forward. In Europe, for example, RegTech is gaining steam in the European Parliament's MiFID II legislation and is likely to expand dramatically in the next years. Furthermore, this law attempted to ensure consistency across investment services across the European Economic Area's 31-member states (EEA).
Market driving Factors:
Growing Demand for Faster Transactions
Interbank transactions can be speed up using blockchain technology. Many financial institutions are considering blockchain technology as a way to speed up transactions, reduce error rates, and eliminate reconciliation. Blockchain is best suited to the payments industry, where it can help reduce multiday settlement cycles to real-time, thereby improving and enhancing transaction operations, enhancing companies' capabilities for AML, KYC, and regulatory compliance data, and the faster transactions and settlements can help a financial institution and its customers transact easily while eradicating the intermediary charging fee to speed up the process. This can help banks save time and money on labor-intensive procedures with their clients and currency transactions.
Concerns Regarding GDPR are Boosting the Demand for RegTech
The GDPR requirements have become obligatory for consumers' personal data due to 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 individuals the right to object to profiling, which is likely to open up the lucrative potential for the industry in terms of establishing trust and increasing service loyalty. As a result, GDPR for some personal data-related activities is mandated by law, RegTech solution providers are incorporating GDPR into their offerings, and the industry is likely to increase in the future years.
Marketing Restraining Factor:
Threat to Cybersecurity and Consumer Data Privacy
Financial service businesses' risk and compliance management functions, with a focus on cybersecurity and data-related threats. Cyberattacks are more likely to occur as a result of the adoption of new legislation and the growing number of data networks, digital apps, and mobile users.
The rising use and integration of RegTech into compliance and regulatory systems could result in new security risks as the process of integrating and extracting data from numerous internal and external sources continues. Similarly, collaborating with several new vendors and granting them access to a company's systems could introduce additional risks. Technology governance, system change management, risk assessments, technical controls, incident response, vendor management, data loss prevention, and employee training are all areas where RegTech technologies can help.
Scope of the Study
Market Segments Covered in the Report:
- Risk & Compliance Management
- AML & Fraud Management
- Identity Management
- Regulatory Reporting
- Regulatory Intelligence
- Banking & Capital Markets
By Deployment Mode
By Organization Size
- Large Enterprises
- Small & Medium Enterprises (SMEs)
- North America
- Asia Pacific
Key Market Players
- ACTICO GmbH
- Jumio Corporation
- MetricStream, Inc.
- NICE Ltd.
- Thomson Reuters Corporation
- Wolters Kluwer N.V.
- IBM Corporation
- Deloitte Touche Tohmatsu Limited
- Broadridge financial solutions Inc.
- Trulioo, Inc.
For more information about this report visit https://www.researchandmarkets.com/r/s2apgp
Laura Wood, Senior Press Manager
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