Regulatory Technology Market to Grow at 24.2% CAGR by 2024
- Written by TechXO Team
- Category: RegTech
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The Regulatory Technology Market is expected to grow at a 24.2% compound annual growth rate (CAGR) in terms of revenue, with a global market size forecast to reach USD4.06 billion by 2024.
A report suggests that the RegTech market, at the end of 2024, will reach USD4.06 billion from USD1.37 billion in 2019, with a growth of 24.2% CAGR in terms of revenue. The study was conducted by Garner Insights, a market intelligence and consulting firm.
It was previously reported that the global RegTech market will reach up to USD7.2 billion by 2023.
As the name suggests, RegTech is the combination of Regulation and Technology. Achieved through an entity-wide standardization of processes, RegTech ensures that the work done by individuals is consistent with regulatory standards. On top of that, regulatory experts implement control frameworks that further strengthen the regulatory system that corporations choose to install.
Regulatory Technology (RegTech) also addresses regulatory challenges that businesses operating in finance encounter. RegTech is often composed of companies who utilize cloud computing technology to help businesses comply with regulations as efficiently and effectively as possible. The technology can be used for compliance data management, audit trail, fraud prevention, and customer data Management.
With an increase in data protection needs all over the world, banks and financial institutions see the imperative to strictly conform to laws and compliances and ensure transparency in transactions involving money, as they are constantly monitored by regulatory bodies. Compliance with the rules allows organizations, like banks and other financial institutions, to avoid paying penalties. Many RegTech vendors partner with Governance, Risk, and Compliance (GRC) vendors to enhance their customer reach and effectively connect to their clients in the market.
The highest use of Regulatory Technology is in Europe due to the strict and mandatory rules for financial transactions and data protection. The implementation of PSD2 (Directive of the European Parliament on payment services) and the United Kingdom’s open-banking regulation and General Data Protection Regulation (GDPR) accounted for the surge in RegTech activities in the region, allowing it to reach USD551M in 2017 (since 2013) which is approximately 18% of global RegTech shares.
While Europe has the strictest rules for data protection, The Asia Pacific region has the highest potential in RegTech growth. With a forecast to grow at the highest CAGR during the period (2018 to 2023), initiatives in various Asia Pacific countries are bound to continuously emerge. Locations like Hong Kong, Singapore, Japan, and even Australia observed growth in the industry, with Singapore forecast to be Asia’s RegTech leader.
RegTech companies use cloud computing which gathers and shares information in real time. Applications can be used to automate processes such as predictive analytics to pore through big data. Looking at patterns and other regulatory failures, a RegTech firm can predict potential risk areas that companies can work on to improve their businesses. Automation also assists in securing systems and assuring that risks are dealt with accordingly.
Upcoming RegTech Conferences in 2019
Be in the loop and join RegTech conferences. Listen to keynote speakers and interact with members of the industry with the following conferences in 2019:
- COMPLY 2019 - Conference on Compliance and RegTech - May 14 – 15, 2019 at Tribeca 360 Degree, New York, USA
- FinTech RegTech Global Summit - September 2019 | Singapore
- RegTech Summit (London & New York City) - October 3, 2019 | etc.venues St Paul’s, London; TBD | New York City
- RegTech Convention - November 26 – 27, 2019, Kap Europa, Frankfurt
With a continuously growing market, RegTech is definitely one of the industries that you need to look into. RegTech has a lot of room for growth and opportunities for businesses anywhere in the world.