A recent study by Juniper Research has found that spending on regtech (regulatory technology) will surge to $207 billion globally by 2028, with AI and machine learning unlocking efficiencies. The study reveals that spend on regtech by financial institutions and other industries will increase by 124% between 2023 and 2028 globally, from $83 billion in 2023. Increasingly complex regulatory requirements are driving corporates to adopt a range of new technologies to facilitate compliance. New approaches include the use of shared blockchain ledgers to improve anti-money laundering and fraud compliance at cryptocurrency exchanges. Natural language processing is also being used to detect malicious actors in emails and phone calls, successfully identifying misconduct, conflicts of interest, and financial crime.
Regtech is a subset of fintech focusing on technology that can enable the delivery of regulatory requirements more efficiently and effectively than existing capabilities. The research found that the leading players offered streamlined identity verification automated by AI, and were able to successfully position themselves in many different industries as regtech expands beyond just financial services. In order to stay ahead of their competition, vendors must develop solutions that utilize AI and machine learning, which can automate processes such as identity verification.
The most successful vendors will leverage AI to reduce the manual requirements needed by compliance teams and allow them to focus on tasks that require human elements, lowering costs, and increasing productivity significantly, at a time of strong cost pressures. The study also revealed the top five vendors for 2023.
Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports, and commentary. To know more about the study, one can visit the Regtech market research page or download the free sample.
