RegTech (Regulatory Technology) is having a significant impact on regulatory compliance. It provides tech-based solutions to the growing demand for compliance in the financial sector. Among the most popular tech solutions in that sector are cognitive computing, predictive analytics and robotic process automation (RPA).
Once a labour-intensive space, regulatory compliance is transitioning into a tech-intensive model. Although regulatory compliance experts may be resistant to changes on their legacy systems, investments in RegTech are crucial to streamlining compliance processes by increasing:
- Efficiency;
- Monitoring capabilities; and
- Compliance management tools.
How Big is RegTech?
RegTech is expected to grow to $127B worldwide by 2024. (Pitchbook 2021).
Considered a niche—but rapidly growing—segment within the FinTech sector, RegTech is proving to be particularly useful in three verticals:
- Crime Surveillance;
- Regulatory Compliance; and
- Risk Management
According to BCG, the U.S. and the UK lead RegTech adoption. Australia follows with more than 80 RegTech firms of the approximately 600 RegTechs globally and is positioned to be a RegTech hub.
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