Global Studies reveal that Asia Pacific region holds a huge potential for the RegTech vendors and is expected to grow at the highest CAGR during the forecast period 2018-2023. Global Regulatory Technology (RegTech) Market: Drivers, Restraints, Opportunities, Trends, and Forecast up to 2023 forecasts spending on RegTech to climb to US$7.2 billion by 2023, from US$2.3 billion in 2018, growing at a CAGR of 25.4%
Banks and financial institutions operate in a highly regulated environment and continuously face new regulations to prevent money laundering and restrict terrorist funding. Banks face hefty fines for non-compliance. Estimates of annual spend on non-compliance issues by financial institutions at more than US$100 billion.
The traditional compliance tools are not found to be effective to respond to regulatory changes in recent times. With the major focus of governments across regions with GDPR guidelines, RegTech is expected to majorly impact the financial service organizations.
RegTech vendors such as Riskpro, are recognizing the opportunities such as offering database solutions to identify the heightened risk entities for financial institutions.