Driving Value Added Services & Content|Billing & Engagement In Motion|Minutes, Messages & Traffic That Pays|Engage & Commercialize Connected Consumers|Making Interactive Media Pay|Billing & Alternative Payments That Convert|Mobile Strategies For Merchants & Content Owners|Monetising Premium Content & Services
Evina Header Banner Ad
DMWF 2022 Main Banner Ad
InternationalPremiums
Digital Select 2022 Ad

Regtech to account for +50% of regulatory compliance spend globally by 2026, led by gambling and healthcare

0

Global regtech spend will exceed $204bn by 2026; accounting for more than 50% of all regulatory compliance spend for the first time. This spend will grow from $68bn in 2022; representing growth of some 200% over the next four years.

The integration of regtech services with BaaS (Banking-as-a-Service) models as key to realising this future market growth.

The research – Regtech: Emerging Trends, Regulatory Impact & Market Forecasts 2022‑2026 – predicts that BaaS models, which include outsourcing regtech services such as digital onboarding, will be key in accelerating AI-based automation for online document verification and KYC (Know Your Customer) processes.

Banking-as-a-service to facilitate AI-based Regtech

AI-powered onboarding enables financial institutions to benefit from real-time progress reporting and automation, which help meet rising client expectations and reduce compliance cost.

According to the research, 26% of digital onboarding processes in the banking market will use AI systems by 2026, compared to just 8% in 2022. Beyond digital onboarding, the report suggests that regtech will leverage BaaS models to swiftly expand the use of AI in banking for more comprehensive tasks, including fraud detection and mitigation.

Research author Harshada Thok explains: “Whilst the current benefits of AI are clear to regtech vendors, the immediate focus must be on ensuring the algorithms are fed the most relevant data to maximise their efficiency in verifying digital identities and future use cases. In turn, this will provide a differentiation point for regtech vendors in an increasingly competitive market.”

Healthcare and gambling to provide the next Regtech opportunities

Additionally, regtech vendors must provide verification services in emerging areas where compliance is being disrupted, such as cryptocurrency exchanges, digital healthcare and online gambling.

Impending changes to regulations in these markets will provide significant opportunities for regtech vendors to broaden their focus beyond financial markets to capitalise on new addressable user bases.

>>> Don't miss out on the latest news, analysis and key insider views from around the industry via the Telemedia Newsletter. Totally free and published every Thursday - Sign up for your copy TODAY
Share.

Leave A Reply