RegTech Market Outlook, 2030

RegTech emerged as a response to the growing complexity of regulatory requirements and the need for financial institutions and businesses to manage compliance more efficiently. Leveraging advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), big data analytics, and blockchain, RegTech automates processes like transaction monitoring, fraud detection, regulatory reporting, and risk assessment, significantly reducing manual effort and operational costs. The demand for RegTech solutions has surged due to increasing regulatory pressures, stricter compliance standards, and the growth of digital banking, fintech, and cryptocurrency platforms, all of which present new compliance challenges.

In April 2023, Hummingbird RegTech launched its app for professionals in the compliance sector to fight financial crime with its custom tech stack. The app offered tools for compliance professionals' everyday work and would help align with current regulations. Policy and regulatory frameworks play a pivotal role in shaping the market; governments and regulatory bodies globally are increasingly supporting RegTech adoption to enhance compliance, streamline reporting, and mitigate risks.

For instance, the Reserve Bank of India (RBI) has endorsed self-regulatory organizations like the Fintech Association for Consumer Empowerment (FACE) and established RegTech codes of conduct to standardize ethical, secure, and transparent implementation of solutions. Despite its rapid growth, the market faces challenges including data privacy concerns, the need for continuous technological updates, and the integration of RegTech systems with legacy infrastructure in large organizations.

In June 2023, Dassault Systèmes announced that it strengthened the financial services business experience of OUTSCALE, its cloud brand and sovereign and sustainable operator of experiences as a service, through the acquisition and integration of Innova Regtech solutions. With this, Dassault Systèmes reaffirmed its claim to make OUTSCALE a reliable partner for financial institutions.

According to the research report “Global RegTech Market Outlook, 2030”, the Global RegTech market is projected to reach market size of USD 55.31 Billion by 2030 increasing from USD 16.29 Billion in 2024, growing with 23.08% CAGR by 2025-30. The primary growth factors is the increasing complexity of global regulatory frameworks, which has compelled organizations to adopt automated solutions to ensure compliance, particularly in areas such as Know Your Customer (KYC), Anti-Money Laundering (AML), fraud detection, and risk management, reducing the risk of non-compliance penalties.

Additionally, RegTech solutions offer cost efficiency by automating manual processes, minimizing errors, and reducing the need for extensive human resources, making them particularly attractive to small and medium-sized enterprises (SMEs) that need to maintain compliance without incurring substantial costs. In May 2024, AMLYZE, a prominent RegTech organization, announced a strategic partnership with Aura Cloud AB, a major company that provides next-generation financial services.

A combination of AMLYZE's Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) solutions and Aura Cloud AB's agility and innovation is set to deliver advanced technology solutions, intensifying the ability of multiple businesses to address financial crime through innovation. Supporting events and initiatives play a crucial role in promoting the adoption and evolution of RegTech solutions; for instance, the Global RegTech Summit USA 2025 in New York City brings together industry leaders, regulators, and innovators to discuss trends, challenges, and opportunities, while the RegTech Africa Conference & Awards 2025 focuses on fostering collaboration and adoption across the African continent.

In addition, a rise in anti-money laundering and fraud is anticipated to boost market growth. The growing product application and an increase in the number of favourable regulations across various countries are driving the market growth. For instance, In April 2022, the Hong Kong Monetary Authority introduced the Regtech Knowledge Hub to encourage enterprises to adopt solutions to support business growth.

Market Drivers

• Increasing Regulatory Complexity and Compliance Costs: The regulatory landscape across industries, especially in banking, financial services, and healthcare, is becoming increasingly complex. Organizations face frequent updates in compliance requirements, anti-money laundering (AML) regulations, data privacy laws, and reporting standards. Managing these manually or through traditional compliance methods is time-consuming and prone to errors. This complexity drives the adoption of RegTech solutions, which automate compliance processes, monitor transactions in real-time, and ensure organizations remain aligned with regulatory mandates. By reducing operational risks and the costs associated with non-compliance penalties, RegTech has become a critical tool for businesses worldwide.
• Digital Transformation and Adoption of Advanced Technologies: Organizations are embracing digital transformation to enhance efficiency, reduce human error, and improve decision-making. RegTech leverages AI, machine learning, blockchain, and big data analytics to streamline compliance, detect fraudulent activities, and perform risk assessments more effectively. This technological adoption allows firms to process large volumes of regulatory data quickly, predict compliance gaps, and proactively manage regulatory obligations. The trend of digital-first operations across sectors significantly fuels RegTech market growth, as companies seek solutions that provide both scalability and precision in regulatory processes.

Market Challenges

• Data Privacy and Security Concerns: RegTech solutions often handle sensitive financial, personal, and organizational data, making them a prime target for cyberattacks. Maintaining data privacy, adhering to data protection laws like GDPR, and securing confidential information are significant challenges. Organizations may hesitate to adopt cloud-based RegTech solutions or fully integrate AI-driven platforms due to these concerns. Ensuring secure infrastructure, robust encryption, and compliance with multiple privacy regulations increases development and operational costs, which can slow down market adoption.
• High Implementation Costs and Integration Issues: Although RegTech promises efficiency, integrating these solutions into existing legacy systems can be complex and costly. Many companies struggle with compatibility issues, employee training, and operational disruption during deployment. Small and medium-sized enterprises (SMEs) may find the initial investment prohibitive, limiting RegTech adoption to larger firms with more resources. Additionally, constant regulatory updates require frequent software upgrades, which add to ongoing costs, further challenging widespread adoption.

Market Trends

• Rise of AI and Machine Learning in Compliance Monitoring: A key trend in the RegTech industry is the increased use of artificial intelligence (AI) and machine learning (ML) to monitor regulatory compliance in real-time. These technologies can analyze massive datasets, detect anomalies, flag suspicious transactions, and predict potential risks before they escalate. The trend toward predictive compliance enables organizations to move from reactive to proactive risk management, enhancing operational efficiency while reducing penalties and reputational damage.
• Integration of Blockchain for Transparent and Immutable Reporting: Blockchain is emerging as a transformative technology in RegTech, offering secure, transparent, and immutable transaction records. Financial institutions and regulatory authorities are exploring blockchain to simplify reporting, audit trails, and identity verification. By providing a single source of truth for regulatory records, blockchain minimizes fraud, reduces reporting errors, and ensures compliance verification is more efficient and transparent. This trend reflects the market’s push toward decentralized, trust-based technologies to strengthen compliance frameworks globally.

Identity Management applications are leading in the global RegTech industry due to the rising need for secure, efficient, and compliant verification of individuals and entities in financial and regulated sectors.

Identity Management (IdM) applications have emerged as a cornerstone of the global RegTech industry, driven primarily by the increasing complexities of regulatory compliance and the need for robust security measures in an era of digital transformation. Financial institutions, insurance companies, and other regulated sectors face growing pressures to verify the identities of their clients, partners, and employees efficiently while adhering to stringent anti-money laundering (AML), know-your-customer (KYC), and data privacy regulations.

Identity Management applications address this challenge by providing advanced solutions that automate, streamline, and secure the onboarding and verification processes, thereby reducing operational risks and ensuring regulatory compliance. One of the key factors contributing to their dominance is the rapid rise in digital banking, online financial services, and e-commerce platforms, which require instant and accurate identity verification to prevent fraud, account takeover, and illicit transactions.

With cybercrime becoming increasingly sophisticated, traditional manual verification methods are no longer sufficient; organizations are turning to identity management solutions equipped with biometrics, artificial intelligence, machine learning, and blockchain technologies to authenticate individuals accurately and in real-time. These systems not only enhance security but also improve customer experience by enabling faster, frictionless onboarding processes. Furthermore, regulators across regions are imposing stricter compliance requirements and heavy penalties for breaches, creating a compelling need for automated, auditable, and reliable identity verification systems.

Banks are the leading end users in the global RegTech industry due to their high exposure to regulatory scrutiny, need for compliance automation, and the increasing complexity of financial regulations.

Banks have emerged as the dominant end users in the global RegTech industry, primarily driven by the growing demand for efficient, accurate, and cost-effective compliance solutions in an environment of intensifying regulatory oversight. The financial sector faces an unprecedented regulatory burden, encompassing anti-money laundering (AML), know-your-customer (KYC), counter-terrorism financing (CTF), data protection, risk management, and reporting requirements imposed by regulators worldwide. The complexity and volume of these regulations make manual compliance processes inefficient, error-prone, and expensive, prompting banks to adopt RegTech solutions at a rapid pace.

By leveraging technologies such as artificial intelligence (AI), machine learning, big data analytics, blockchain, and cloud computing, RegTech applications allow banks to automate compliance monitoring, detect suspicious transactions, and manage regulatory reporting with higher accuracy and speed. One of the key drivers of banks’ dominance in RegTech adoption is the high financial and reputational risk associated with non-compliance.

Regulatory fines and penalties for breaches can reach billions of dollars, making proactive investment in advanced compliance technologies both a financial necessity and a strategic imperative. Moreover, banks operate in increasingly globalized markets, requiring them to comply with diverse and often conflicting regulations across jurisdictions, which further increases the appeal of RegTech solutions that offer scalable, cross-border compliance capabilities.

Solution components are leading in the global RegTech industry because they offer modular, flexible, and specialized tools that allow organizations to address specific regulatory challenges efficiently and cost-effectively.

Solution components have emerged as the leading segment in the global RegTech industry, largely due to their ability to provide targeted, customizable, and highly scalable regulatory technology tools that meet the diverse needs of organizations operating in complex regulatory environments. Unlike full-service RegTech platforms, solution components allow institutions to adopt specific functionalities - such as identity verification, transaction monitoring, risk assessment, regulatory reporting, or compliance analytics without overhauling existing systems.

This modular approach enables organizations to integrate advanced technology into their compliance workflows incrementally, reducing implementation costs, minimizing operational disruption, and allowing for a faster return on investment. The increasing complexity of financial and non-financial regulations across jurisdictions has intensified the demand for such specialized solutions. Organizations, particularly in banking, insurance, and capital markets, face strict obligations under anti-money laundering (AML), know-your-customer (KYC), data protection, and financial reporting standards.

Solution components help them navigate these regulatory pressures efficiently by offering automated, real-time tools that enhance accuracy, reduce human error, and ensure timely compliance. Moreover, the rapid pace of digital transformation across industries has created a need for flexible technologies that can adapt to evolving regulatory landscapes. Solution components are inherently versatile, allowing businesses to select, combine, or scale functionalities according to their specific compliance requirements, organizational size, and technological maturity.

Cloud deployment is leading in the global RegTech industry because it offers scalability, cost efficiency, real-time updates, and easy integration, enabling organizations to manage regulatory compliance more effectively.

Cloud deployment has become the dominant mode in the global RegTech industry due to its ability to provide highly scalable, flexible, and cost-effective solutions for managing complex regulatory compliance requirements. Organizations across banking, insurance, capital markets, and other highly regulated sectors are facing increasing pressures to comply with evolving regulations, including anti-money laundering (AML), know-your-customer (KYC), data protection, and financial reporting standards. Traditional on-premises deployment models often involve significant infrastructure investment, limited scalability, and slower updates, which make it challenging to keep up with regulatory changes and maintain operational efficiency.

Cloud-based RegTech solutions address these challenges by providing a centralized, easily accessible platform that allows organizations to implement, update, and scale compliance applications quickly and efficiently. Cloud deployment eliminates the need for extensive hardware investment, IT maintenance, and software upgrades, enabling organizations to reduce operational expenses while gaining access to advanced technologies. Additionally, cloud solutions offer subscription-based pricing models, allowing institutions of all sizes from large multinational banks to smaller fintech companies to access enterprise-grade compliance tools without the financial burden of traditional systems.

Another critical advantage of cloud deployment is its scalability and flexibility. As regulatory requirements evolve or organizations expand into new markets, cloud-based platforms can easily scale to accommodate increased data volumes, new compliance functionalities, or additional users without major system overhauls. This capability is particularly valuable for multinational organizations that must comply with diverse regulations across jurisdictions, as cloud platforms can support centralized monitoring and reporting while maintaining local compliance requirements.

Large enterprises are leading in the global RegTech industry due to their extensive regulatory obligations, greater risk exposure, and capacity to invest in advanced compliance technologies.

Large enterprises have become the leading segment in the global RegTech industry primarily because of their significant regulatory responsibilities, complex operational structures, and heightened exposure to financial and reputational risks. Organizations such as multinational banks, insurance companies, and capital market firms operate across multiple jurisdictions, subjecting them to a wide array of regulations including anti-money laundering (AML), know-your-customer (KYC), counter-terrorism financing (CTF), data privacy laws, and financial reporting standards.

The volume and complexity of these requirements make manual compliance processes inefficient, error-prone, and costly, prompting large enterprises to adopt RegTech solutions at a faster pace than smaller organizations. Large enterprises also possess the resources, both financial and technological, to invest in advanced RegTech tools that integrate artificial intelligence, machine learning, big data analytics, and blockchain technologies. These tools enable real-time monitoring, automated reporting, predictive risk assessments, and enhanced fraud detection, thereby ensuring regulatory compliance while optimizing operational efficiency. Another key factor contributing to their dominance is the scale of data these enterprises manage.

Handling millions of transactions, accounts, and customer records across various markets requires sophisticated systems that can process, analyze, and report compliance-related information accurately and quickly. RegTech solutions help large enterprises maintain a centralized compliance framework while allowing for regional customization, which is essential for meeting diverse regulatory standards.

North America is leading in the global RegTech industry due to its stringent regulatory frameworks, strong financial sector presence, and rapid adoption of advanced compliance technologies.

North America has established itself as the leading region in the global RegTech industry, primarily because of its stringent regulatory environment, robust financial services sector, and early adoption of advanced compliance technologies. The region, particularly the United States, is home to some of the world’s largest banking, insurance, and capital market institutions, all of which are heavily regulated by agencies such as the Securities and Exchange Commission (SEC), the Financial Crimes Enforcement Network (FinCEN), the Office of the Comptroller of the Currency (OCC), and the Federal Reserve.

These institutions must adhere to complex and evolving compliance requirements related to anti-money laundering (AML), know-your-customer (KYC), counter-terrorism financing (CTF), cybersecurity, and data privacy laws, such as the Gramm-Leach-Bliley Act (GLBA), the Bank Secrecy Act (BSA), and the California Consumer Privacy Act (CCPA). The high cost of non-compliance, including severe penalties, reputational damage, and operational disruptions, drives organizations in North America to invest heavily in RegTech solutions that automate compliance, enhance transparency, and mitigate risks.

The region also benefits from its strong ecosystem of technology providers, fintech startups, and venture capital investment, which fosters innovation and accelerates the development of next-generation RegTech applications. Many leading RegTech companies are headquartered in the U.S. and Canada, providing banks, asset managers, and other financial institutions with cutting-edge tools that leverage artificial intelligence, machine learning, big data analytics, and blockchain for real-time monitoring, fraud detection, regulatory reporting, and identity management. Moreover, North America’s strong culture of digital transformation and technology adoption makes it a natural leader in deploying cloud-based, scalable, and modular RegTech solutions that integrate seamlessly with existing enterprise systems.

• In November 2024: Irish RegTech start-up Customs Window Technologies announced the closure of an €800k seed funding round to expand into the UK market. The company offers an AI-driven customs declaration system addressing post-Brexit compliance challenges, aiming to simplify processes and manage risks for clients like e-commerce platforms. This funding will support scaling efforts and new customer acquisition.
• In June 2024: US RegTech start-up Norm Ai raised $27 million in a Series A funding round led by Coatue, bringing its total funding to $38 million. The company’s AI-powered Regulatory Agent platform automates compliance processes, enabling faster and more accurate regulatory assessments. The funds will support product development and team expansion across various roles.
• In June 2024: Ventia launched its RegTech GenAI solution, leveraging Microsoft Azure OpenAI Service to streamline employee access to internal compliance and operational information. The AI chatbot enhances efficiency by providing accurate, citation-backed responses, reducing time spent on policy searches. Following a successful pilot, Ventia plans an enterprise-wide rollout to over 10,000 employees by the end of 2024.
• In June 2024: Paris-based RegTech start-up Ondorse announced its expansion into the UK and Ireland, securing deals with PayXpert, Assurdeal, and Kota. Its AI-powered KYB solution reduces compliance costs by up to 70% and automates processes to combat financial crime.
• In February 2024: NICE Ltd. Introduced three advanced generative AI-based solutions aimed at combating financial crime and streamlining investigations and reporting processes. The solutions present major reductions in investigation time and time savings in suspicious activity report (SAR) filing, improving efficiency in financial crime, and compliance risk management programmes.
• In April 2024: UK RegTech firm ComplyAdvantage acquired tech company Golden Resursion for an undisclosed sum. This acquisition enabled ComplyAdvantage to tap additional disparate data sources.
• In May 2024: CUBE, one of the prominent companies in the RegTech industry, including Automated Regulatory Intelligence (ARI), announced that it had acquired Thomson Reuters’ RegTech business. This acquisition has expanded the company’s customer base substantially while also strengthening its human resources talent pool.