According to our analysts at Research Nester, the global RegTech market would grow at a CAGR of about 22% between 2023 and 2035 and reach a market size of USD 24 billion by 2035. The online gaming industry's growing preference for automated regulatory compliance and identity verification solutions, as well as the pharmaceutical and banking, financial services and insurance (BFSI) industry's rising need for risk and regulatory compliance solutions, are anticipated to drive the demand for RegTech solutions. On the other hand, our analysts predict that over the next few years, the market is expected to undergo a significant transformation as a number of top businesses are spending on these compliance solutions and are also expanding quickly; thanks to the new launches and improvements, collaborations, and cooperation. Our estimations states that spending on these compliance solutions by businesses is anticipated to rise by 35% annually. In addition to this, the rising demand for regulatory reporting-as-a-service amongst financial institutions is also poised to create numerous growth opportunities for businesses planning to invest in this field.
According to our analysts at Research Nester, the financial industry is expected to spend about USD 120 billion on regulatory compliance over the next five years.
RegTech promises to lower compliance expenses and speed up the procedure. Additionally, it lessens customer-side challenges and the likelihood of compliance failures. Applications of the technology in financial institutions might lead to decreased penalties and litigation costs. Financial institutions also are benefitted with a reduction in the risk of reputational damage associated with data or cybersecurity breaches, brought on majorly by poor compliance monitoring. Data analytics can also be enhanced with the use of the technology. Besides this, institutions may also create a more thorough picture of their clients' internal and external financial histories through data analytics. Here is a brief of how RegTech technology functions in combination with other related technologies in the banking, financial services and insurance (BFSI) industry.