The RegTech Association (RTA) has unveiled its annual Industry Perspectives Report, delineating the accelerating maturity and expansion of the RegTech sector into new verticals such as healthcare and telecommunications.
This insightful global survey, empowered by data analytics from Deloitte, draws responses from a diverse group of stakeholders including regulators, financial authorities, and RegTech/SupTech firms.
Deborah Young, CEO of the RTA, highlighted the significance of the survey, stating, “We take pride in this global annual data initiative, which provides contemporary, market-driven insights while driving actionable outcomes to benefit the broader RegTech and SupTech ecosystem.”
The report marks another year of solid growth for the industry, buoyed by heightened customer expectations and a surge in regulatory engagement, particularly focusing on combating fraud and scams—a newly prominent risk area for RegTech applications.
Key findings from the report reveal a strong commitment among regulators to adopt RegTech solutions, with customer demands and regulatory pressures cited as the primary motivators. The report also notes a stabilization in the time-to-value for RegTech solutions, averaging about 8.1 months from initial conversation to full deployment. Revenue growth projections are optimistic, with 26% of RegTech companies anticipating growth exceeding 30%.
Sweta Maira, Partner at Deloitte, added, “Over 73% of respondents believe that Generative AI will substantially transform the industry within the next one to two years, particularly in areas like Regulatory Compliance and AML/CTF/Sanctions.” This reflects a broader trend of significant adoption of AI technologies, including Machine Learning and Natural Language Processing, within the sector.
The RTA’s roadmap for the future is clear. It intends to champion the use of safe and explainable Generative AI applications, strengthen the focus on customer and consumer outcomes, and enhance collaboration across the ecosystem. These efforts aim to leverage innovative technologies to safeguard financial systems and improve service delivery across various industries.
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