Juniper Research, a leading authority in FinTech research has projected that global spending by financial institutions and other businesses on regulatory technology (RegTech) will rise by 124 percent between 2023 and 2028.
According to a new analysis by Juniper Research, this year 2023 alone, global spending is expected to come in at $83 billion, but just five years later, Jupiter research said that figure will climb to $207 billion in 2028.
The research firm noted that a variety of Innovative technologies are being adopted by corporations to help them comply with ever-more complex regulatory requirements.
Juniper stated that the usage of shared blockchain ledgers and fraud compliance at cryptocurrency exchanges are two new strategies for enhancing anti-money laundering.
The research report explained that using natural language processing, it is possible to spot dishonesty, conflicts of interest, and financial wrongdoing in emails and phone calls. On the back of this, it predicted that as these technologies are used more widely, company investment will rise as a result of the enormous efficiencies that Regtech may produce.
“Using technology, regulatory technology manages regulatory procedures in highly regulated businesses. RegTech’s primary tasks include monitoring, reporting, and compliance with regulatory requirements.”
Juniper Research
A branch of FinTech known as “RegTech” focuses on technology that can deliver regulatory needs more effectively and efficiently than current capabilities.
The study discovered that, as RegTech expanded beyond financial services, the top players offered streamlined identity verification that was automated by AI and were able to successfully position themselves in many different industries.
Industry experts believe that RegTech offers financial organisations several benefits. These include assisting financial organisations in reducing compliance costs, assisting financial institutions in enhancing the effectiveness of their compliance operations, saving time and resources, assisting financial institutions in bettering the client experience, and assisting financial institutions in managing risk more effectively by monitoring and analysing compliance data in real-time.
Juniper noted that the regulatory technology (Regtech) sector has seen substantial expansion in recent years as new technologies are developed to assist firms in complying with ever-more complicated regulatory regulations.
It further noted that It is crucial to think about where the Regtech business might be going and what technologies can help it outperform as technology develops at a rapid rate.
Application of Artificial Intelligence
The application of artificial intelligence (AI) and machine learning (ML) technology is one area of the Regtech industry that is projected to experience tremendous expansion. By automating many of the currently necessary manual processes, these technologies have the potential to transform compliance.
The banking sector Is being changed by the increasing development of RegTech, Juniper observed, adding that RegTech is enhancing compliance’s effectiveness and efficiency while also helping financial institutions manage risk.
The study stressed that Regtech will become more and more important as the financial sector develops, and advised that by keeping up with the most recent trends and technology, financial institutions may ensure that they are implementing RegTech solutions that are effective, efficient, and compliant with all applicable regulations.
Juniper stated RegTech could help financial institutions in the future accomplish their compliance goals and enhance their performance in general with the right approach.
READ ALSO: Africa’s External Debt to Hit $1.13 trillion by 2023- AfDB Projects
