According to our latest study on "Regtech Market – Global and Regional Share, Trend, and Growth Opportunity Analysis – by Component, Deployment Type, Enterprise Size, Application, and Industry Vertical," the regtech market size was valued at US$ 7.55 billion in 2023 and is projected to reach US$ 42.73 billion by 2031; it is projected to record a CAGR of 24.2% from 2023 to 2031. Various factors are expected to contribute to the regtech market growth over the forecast period.
Collaborations Between National Regulators and Financial Institutions Regtech Market Growth During Forecast Period
The strong willingness of the fintech community to collaborate with government authorities benefits both businesses and governments. Regulatory organizations in Asia Pacific, the US, and Europe continuously seek opportunities to collaborate with businesses from the global fintech sector. The Global Financial Innovation Network (GFIN), which was officially founded by internationally operating financial regulators and allied organizations in January 2019, is dedicated to promoting financial innovation in the interests of consumers. The GFIN aims to provide effective solutions for innovation-oriented enterprises to assist them in handling regulatory tasks. Its solutions are also expected to help them operate with new business models based on different jurisdictions. Thus, an upsurge in collaborations between national regulators and financial institutions bolsters the Regtech market growth.
South Africa is witnessing a wave of digital transformation initiatives across various industries. Regtech solutions utilize advanced technologies such as artificial intelligence, machine learning, blockchain, and big data analytics to streamline regulatory processes, manage compliance risks, and ensure adherence to complex regulatory frameworks across various industries. Moreover, in the country there has been a significant increase in the investment in the regtech industry. For instance, in May 2024, South African fintech firm Lesaka Technologies entered into a definitive agreement to acquire Adumo, a fellow South Africa-based paytech company, in a deal valued at approximately US$ 85.9 million. Lesaka Technologies, listed on the NASDAQ and the Johannesburg Stock Exchange, will finance the acquisition through a combination of cash and equity.
Key Findings of Regtech Market Study:
The regtech market is segmented on the basis of component, deployment type, enterprise size, application, industry vertical, and geography. Based on component, the market is segmented into solutions and services. Based on deployment type, the market is bifurcated into on-premises and cloud. By application, the market is segmented into risk and compliance management, AML and fraud management, and identity management. In terms of enterprise size, the market is bifurcated into SMEs and large enterprises. Based on industry vertical, the Regtech market is segmented into banks, insurance, and others. On the basis of geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. Based on the component, the market is segmented into solutions and services. The solutions segment held the largest share in the Regtech market in 2023. Regtech solutions, such as digital onboarding, automated regulatory reporting, and bank statements, are designed with a robust approach to digital compliance and are created to enhance agility while guaranteeing improved security, safety, and risk management. Various companies are launching regtech solutions globally. In April 2024, Innovate Finance, the City of London Corporation, and Encompass Corporation initiated a newly formed regtech platform with an aim to propel the regtech industry forward by addressing crucial challenges and enhancing the communication and effectiveness of Regtech solutions. Thus, with increasing regtech solutions, the regtech market is growing.
Contact Us
Contact Person: Sameer Joshi
Phone: +1-646-491-9876
Email Id: sales@premiummarketinsights.com