North America Is Expected To Account For Largest Share Of Global Regtech Growth Through 2025
Financialnewsmedia.com News Commentary
PALM BEACH, Fla., Feb. 4, 2021 /PRNewswire/ -- Regulatory Technology (a.k.a. RegTech) is any technology that aims to standardize regulatory processes, create unambiguous interpretations of the regulations, and, most important - automate the compliance process. RegTech is a sub-class of FinTech and has gained prominence since 2015. Rising penalties for non-compliance with regulations are anticipated to further fuel the growth. RegTech solutions with real-time compliance analysis help connect regulators and businesses while protecting the interests of consumers. The Institute of International Finance has defined RegTech as the use of new technologies to meet compliance and regulatory requirements more efficiently. RegTech involves the use of tools to enhance the stringency of regulations and minimize the compliance risks associated with the business. According to a study of the World Bank, a robust regulatory framework can help boost GDP growth by more than 2% annually. In addition to the rising demand for risk management, the additional costs of managing compliance procedures and increasing demand for regulating business processes are expected to drive the regulatory technology market growth over the forecast period. A report by Grand View Research projected that the global RegTech market size was valued at USD 2.87 billion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 52.8% from 2019 to 2025. High compliance costs and growing demand for regulatory intelligence are expected to contribute to the adoption of regulatory technology (RegTech) through 2025. Active Companies from around the market with recent developments this week include: