BASINGSTOKE, England, April 21 (Bernama-BUSINESS WIRE) -- A new study from
Juniper Research has found that global regtech spend will exceed $204 billion by 2026; accounting for over 50% of all regulatory compliance spend for the first time. This spend will grow from $68 billion in 2022; representing growth of over 200% over the next four years. The report identified the integration of regtech services with BaaS (Banking-as-a-Service) models as key to realising this future market growth.
The new research,
Regtech: Emerging Trends, Regulatory Impact & Market Forecasts 2022‑2026, predicts that BaaS models, which include outsourcing regtech services such as digital onboarding, will be key in accelerating AI-based automation for online document verification and KYC (Know Your Customer) processes.
For more insights, download the free whitepaper:
Regtech ~ Evolving Trends Amidst Digital TransformationBanking-as-a-Service to Facilitate AI-based RegtechAI-powered onboarding enables financial institutions to benefit from real-time progress reporting and automation, which help meet rising client expectations and reduce compliance cost. According to the research, 26% of digital onboarding processes in the banking market will use AI systems by 2026, compared to just 8% in 2022. Beyond digital onboarding, the report suggests that regtech will leverage BaaS models to swiftly expand the use of AI in banking for more comprehensive tasks, including fraud detection and mitigation.
Research author Harshada Thok explains:
“Whilst the current benefits of AI are clear to regtech vendors, the immediate focus must be on ensuring the algorithms are fed the most relevant data to maximise their efficiency in verifying digital identities and future use cases. In turn, this will provide a differentiation point for regtech vendors in an increasingly competitive market.”Healthcare to Provide the Next Regtech OpportunityAdditionally, regtech vendors must provide verification services in emerging areas where compliance is being disrupted, such as cryptocurrency exchanges and digital healthcare. Impending changes to regulations in these markets will provide significant opportunities for regtech vendors to broaden their focus beyond financial markets to capitalise on new addressable user bases.
Regtech market research:
https://www.juniperresearch.com/researchstore/fintech-payments/regtech-market-size-reportDownload the whitepaper:
https://www.juniperresearch.com/whitepapers/regtech-evolving-trends-amidst-digitalJuniper Research provides research and analytical services to the global hi-tech communications sector; providing consultancy, analyst reports, and industry commentary.
