The regulatory technology is also called as a “RegTech” and is a new area within the financial services industry which uses information technology to improve the regulatory procedures. The main objective of this, is to improve the transparency as well as dependability and to systematize regulatory procedures, to support sound interpretations of confusing regulations and thus deliver higher levels of quality at lower cost. The banks and the financial institutions function in an extremely regulated environment and uninterruptedly face new regulation to safeguard money laundering and constrain terrorist funding. The Banks spend heavy amount because of fines and forfeits for the non-compliance with the regulations. The industry of FinTech, over the last couple of years, has appreciated the need and occasion of RegTech software. Moreover, the key players of this market are doing effective developments in this technology by which the regulatory procedures are understood easily and increase the demand more effectively. This will also results in leading the effective market growth across the globe.
According to the report analysis, ‘Global Regulatory Technology (RegTech) Market: Drivers, Restraints, Opportunities, Trends, and Forecast up to 2023’ states that there are several key players which are recently functioning in this market more effectively for attaining the highest market share across the globe with the effective adoption of strategies and policies of doing developments in the technology includes Algoreg, Clarus, Reportix, NEX Regulatory Reporting, Lombard Risk, Ayasdi, Featurespace, Abside Smart Financial Technologies, Fintellix Solutions, Promapp, NetGuardians, AML Partners, EastNets, OpusDatum, and AXIOMSL. In addition, the development of technologies, such as AI, ML, and automation, is impacting the market growth and organizations are effectively accepting the RegTech solutions for precise document verifications, quick data insights, and to decrease the peril vulnerability.
Additionally, with the significant developments in the technology and investment by the organizations the market is spread across the globe more significantly which majorly includes North America, Europe, Asia Pacific, Middle East Africa, and Latin America. The acceptance of RegTech is the uppermost in Europe due to strict and compulsory rules and directives for financial transactions and data security. The cloud arrangement kind suggests enterprises to choose for SaaS on a payment basis as per utilization rather than experiencing costs on hardware and infrastructure. The Asia Pacific region controls an enormous prospective for the vendors and is predictable to rise at the uppermost CAGR during the forecast period of 2018-2023. The Asia Pacific region is anticipated to observe growth in RegTech owing to the existence of a few emerging countries and financial pivots in Hong Kong, Singapore, and India.
With an augmented aim on data safeguard rules, organizations requirement to rigorously adhere to compliances and observe transparency in money transactions as laid down by the regulatory bodies to sidestep massive penalties. Many of the RegTech retailers have amalgamated with GRC wholesalers to develop their reach to the market and clients. Hence, it is expected that in the near future the market of regulatory technology will increase across the globe more significantly over the recent few years.
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Ankur Gupta, Head Marketing & Communications