6 August 2020: Within the financial industry, RegTech is the management of regulatory processes through technology. Regulatory monitoring, reporting, and compliance are the main functions of RegTech in order to help businesses comply with regulations less expensively and efficiently. RegTech is a group of companies that uses cloud computing technology through software-as-a-service (SaaS) and is also known as regulatory technology.
Complex Processes in Banking Sector to Promote Segment Growth
Based on applications, the RegTech market is segmented into risk & compliance management, identity management, regulatory reporting, fraud management, and regulatory intelligence. The risk and compliance management segment accounted for the largest share of the market in 2018. The growth is due to banking sector experiencing need to manage complex processes in ensuring better execution of compliance management. High adoption of the technology in the U.S. and the U.K., along with increasing stringent regulations regarding compliance and risk management, identity management, and fraud management are driving the growth of the market.
Within the existing technology, platforms that are available for the assimilation of RegTech solutions is anticipated to improve the compliance functionality. This has resulted in the financial entities improving agility while reducing overall cost of compliance, operational efficiency, and financial transparency. Many companies in the U.K. and the U.S. are focusing on reducing compliance costs to transform regulatory compliance by enabling innovation.
The regulatory intelligence segment is anticipated to witness growth owing to the growing financial services, adoption across banking, and insurance sectors, among others. Gathering, monitoring, analyzing regulatory data, tracking down developments, and rapidly changing environment are some of the major applications of the regulatory intelligence. A regulatory intelligence process enables flexible research analysis while monitoring regulatory environment and ensuring compliance.
On account of the growing adoption of compliance and risk management solutions in across different verticals and enterprises accounted for the highest regulatory technology market. Consultation service providers such as Deloitte, IBM, Thomson Reuters, and PwC help large enterprises realize the benefits of efficiently managing their business functions.
A robust regulatory framework by major companies such as Deloitte and IBM is increasingly being implemented due to the increasing demand for RegTech applications. Furthermore, it has also enabled digitalization of the compliance and risk management with the use of robotics for process automation, advanced analytics, and workflow automation.
Market Insights
High demand for regulatory intelligence and high compliance costs are expected to contribute to the adoption of RegTech. Rising penalties for non-compliance with regulations are anticipated to further fuel the market growth. RegTech solutions protect the interests of consumers with real-time compliance analysis and also help connect businesses and regulators.
The major companies of the Regtech market include PwC; NICE Actimize; IBM; BWise; Broadridge Financial Solutions Inc.; London Stock Exchange Group plc; Accuity; Wolters Kluwer; RIMES TECHNOLOGIES CORPORATION; Compendor; Deloitte Touche Tohmatsu Limited; and Infrasoft Technologies Ltd.
No comments:
Post a Comment