According to a recent study conducted by Juniper Research, a leading authority in the field of fintech, global spending on regulatory technology (Regtech) by financial institutions and other industries is projected to surge by 124% between 2023 and 2028, reaching an impressive $207 billion.
The growing complexity of regulatory requirements is compelling companies to adopt various technological advancements to enhance their compliance processes. Among the emerging approaches are the utilization of shared blockchain ledgers to bolster anti-money laundering efforts and fraud compliance within cryptocurrency exchanges. Moreover, natural language processing is being employed to identify malicious actors in emails and phone calls, successfully exposing instances of misconduct, conflicts of interest, and financial crimes. As the deployment of these technologies increases, enterprises are expected to recognize the significant operational efficiencies that Regtech can bring and subsequently invest more in the sector.
Regtech, a subset of fintech that focuses on leveraging technology to deliver regulatory requirements more efficiently than traditional methods, is experiencing a notable expansion beyond the financial services realm.
Juniper Research has released its latest Competitor Leaderboard for 2023 as part of the study. This leaderboard ranks the Top 23 Regtech Vendors based on criteria such as the innovation level of their solutions, the number of industries they serve, and their future business prospects.
The leading vendors for 2023, as identified by the research, are as follows:
Encompass
Socure
Feedzai
Chainalysis
Fenergo
These top players are known for their streamlined identity verification processes, which are powered by artificial intelligence (AI). They have successfully positioned themselves across various industries, reflecting the expanding scope of Regtech beyond the financial sector. In order to stay ahead in the market, Regtech vendors need to continuously innovate and create AI and machine learning-driven solutions that automate various processes, including identity verification.
By leveraging AI, successful Regtech vendors can reduce the manual workload of compliance teams, enabling them to focus on tasks that require human expertise. This not only lowers costs but also significantly enhances productivity, particularly at a time when businesses face mounting cost pressures.
Meanwhile, Juniper Research is a well-known and respected firm that specializes in offering research and analytical services to the global hi-tech communications sector. Their services include providing consultancy, generating analyst reports, and offering expert commentary on industry trends and developments.
The study offers insights into key trends and challenges in the development of Regtech infrastructure. It assesses how advanced technologies such as machine learning and blockchain are being integrated into solutions that help the financial industry meet anti-money laundering regulations and combat fraudulent activities. Additionally, it provides an overview of various digital onboarding methods and evaluates their effectiveness.
The study highlights key opportunities for vendors operating in the Regtech market, making it an essential read for key stakeholders. It presents a five-year forecast for crucial metrics, including total Regtech spending, the number of new bank accounts opened through digital onboarding, and the time and cost savings achieved through AI-driven Know Your Customer (KYC) checks. The data is segmented by banking and property onboarding and further categorized by eight key forecast regions and 60 countries.
Juniper Research offers a comprehensive online data platform called “harvest,” which provides the latest market data, continuously updated throughout the year. The platform empowers businesses with market intelligence and sends alerts whenever data is updated. Additionally, clients can use the interactive Excel tool (IFxl) to manipulate forecast data and charts, test their assumptions through interactive scenarios, and compare selected markets side by side.
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