South & Central America RegTech Market Forecast to 2031 - Regional Analysis - by Component, Deployment Type, Enterprise Size, Application, and Industry Vertical

The South & Central America regtech market was valued at US$ 516.50 million in 2023 and is expected to reach US$ 2.44 billion by 2031; it is estimated to register a CAGR of 21.4% from 2023 to 2031.

Low Entry Barriers for SaaS-based Solutions Fuels South & Central America Regtech Market

Regtech firms employ cloud technology and software-as-a-service (SaaS) capability to assist businesses in complying with laws more efficiently and affordably. Regtech solutions enable businesses to maintain a more consistent approach to data quality from the onboarding stage through continuous customer monitoring. Streamlining know-your-customer (KYC) checks and eliminating the manual processes of customer record verification can help improve compliance with anti-money laundering rules. The popularity of the SaaS model in Regtech and other industries can be attributed to its accessibility and low human intervention needs. SaaS solutions can be easily accessible with an internet connection and a browser.

Moreover, vendors themselves can manage all technical issues, resulting in less dependency on in-house IT teams. Additionally, with easier access to Regtech tools, companies can explore and adopt cutting-edge technologies such as artificial intelligence, machine learning, and blockchain. These technologies offer new opportunities for regtech companies to develop advanced solutions that address evolving regulatory challenges. Thus, the low entry barriers for SaaS-based Regtech solutions offer potential opportunities for the growth of the market.

South & Central America Regtech Market Overview

Brazil is the hub of innovation in South America, with a majority of the region's innovative companies based there. The country attracts more than half of all investments made in fintech across the continent. In 2020, Brazilian fintech companies experienced a significant surge in investments, receiving 73% more funding than the previous year. One notable achievement in the Brazilian fintech sector is the rapid growth of the largest fintech company in the country. It took them just under two years to reach the impressive milestone of serving 1 million clients.

Within a total of three years and nine months, they were able to expand their user base to an impressive five million users. In the realm of regtech, Brazil has also seen promising developments. Senhasegura, a Brazilian company specializing in privileged access management (PAM) solutions, successfully raised $13 million in a Series A investment round in August 2022. This highlights the growing interest and investment in regtech solutions in Brazil.

South & Central America Regtech Market Revenue and Forecast to 2031 (US$ Million)

South & Central America Regtech Market Segmentation

The South & Central America regtech market is categorized component, deployment type, enterprise size, application, industry vertical, and country.

• By component, the South & Central America regtech market is bifurcated into solutions and services. The solutions segment held a larger share of the South & Central America regtech market share in 2023.
• In terms of deployment type, the South & Central America regtech market is bifurcated into on-premise and cloud. The cloud segment held a larger share of the South & Central America regtech market share in 2023.
• Based on enterprise size, the South & Central America regtech market is bifurcated into SMEs and large enterprises. The large enterprises segment held a larger share of the South & Central America regtech market share in 2023.
• By application, the South & Central America regtech market is segmented into risk and compliance management, AML and fraud management, and identity management. The risk and compliance management segment held the largest share of the South & Central America regtech market share in 2023.
• By industry vertical, the South & Central America regtech market is segmented into banks, insurance, and others. The banks segment held the largest share of the South & Central America regtech market share in 2023.
• Based on country, the South & Central America regtech market is segmented into Brazil, Argentina, and the Rest of South & Central America. Brazil segment held the largest share of South & Central America regtech market in 2023.

Deloitte Touche Tohmatsu Ltd; International Business Machines Corp; MetricStream, Inc.; PricewaterhouseCoopers International Ltd; and Thomson Reuters Corp are some of the leading companies operating in the South & Central America regtech market.

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