Regulatory Technology (RegTech) Market is likely to rise rapidly as regulatory Technology (RegTech) so far has been focused on the digitization
Regulation is generally used for protection of investors and integrity of markets. Regulatory technology is attracting significant investor interest. This is due to its ability to develop innovative digital solutions and the need for deep regulatory understanding. Regulatory Technology (RegTech) comprises companies that use computing technology via a software-as-a-service (SaaS) platform to help businesses comply with regulations in a cheaper and efficient manner.
Regulatory Technology (RegTech) enables central banks, financial institutions, and regulators to increase the efficiency of regulatory processes and data management. Growing levels of regulation and more challenging regulatory anticipations are having substantial operational impacts on companies requiring technology, people, and process-based solutions. This can create challenges around embedding, understanding, and implementing the new regulations; however, for existing regulations, there can be challenges around managing and understanding the risks.
Regulatory Technology (RegTech) so far has been focused on the digitization of compliance processes and manual reporting to know the customers. This provides substantial cost savings to the financial services industry and regulators. The financial institutions work in a highly regulated environment and constantly face new regulations. Banks spend heavy amount owing to penalties and fines for non-compliance with regulations.
Generally, regulatory technology companies focus on the improvement of data quality, automation of manual processes, the creation of a complete view of data, and the data analytics applications. Numerous technology solutions are leveraging a range of innovative technologies to support financial service companies with their regulatory compliance efforts. Regulatory Technology is used to strengthen the efficiency and effectiveness of compliance programs; it is expected that market participants may come across new operational challenges and regulatory considerations.
Regulatory Technology (RegTech) is introduced at different points of compliance. They are used to anticipate potential concerns, such as real-time tracking, to detect non-compliant conduct, and to investigate or create audit trails. Regulatory Technology save firms money, time, and help protect them from regulatory fines due to non-compliance. Time is saved by a decrease in information assembling to produce reports. Money is saved by completing tasks and by using one solution across the business. Regulatory Technology is generated as well as configured at a high speed. By leveraging the ETL (extract, transform, and load) technology, businesses can remove data sets, thus enabling easy data analysis. RegTech allows companies to use similar data to achieve multiple objectives. These factors are expected to boost the global Regulatory Technology (RegTech) market in the coming years.
However, intensified market competition and inter-regulatory conflicts in Regulatory Technology (RegTech) are projected to restrain the global RegTech market during the forecast period. Nevertheless, the growing popularity and demand for RegTech solutions are anticipated to offer attractive growth opportunities to major players in the global market in the next few years.
The global Regulatory Technology (RegTech) market can be segmented based on the solution, deployment, enterprise size, and region. In terms of a solution, the market can be categorized into compliance management, reporting, risk management, and identity management. In terms of deployment, the market can be categorized into on-premise and cloud. Based on enterprise size, the market can be classified into a small and medium enterprise and large enterprise.
In terms of region, the global Regulatory Technology (RegTech) market can be segmented into North America, Europe, Asia Pacific, Middle East & Africa (MEA), and South America. North America is anticipated to hold a leading share of the global market during the forecast period. This is attributable to the presence of global players in the region.
Some of the leading companies operating in the global Regulatory Technology (RegTech) market are Algoreg, Clarus, NEX Regulatory Reporting, Featurespace Limited, Abside Smart Financial Technologies, Fintellix Solutions, Promapp, AML Partners, Algoreg , AXIOMSL, Ayasdi, Clarus, EastNets NetGuardians , Reportix, and OpusDatum Ltd.