Artificial Intelligence Market In Regtech - Forecast(2022 - 2027)

Report Code: ITR 0103 Report Format: PDF + Excel

Artificial Intelligence in Regtech Market Overview

The market for AI in Regtech is forecast to reach $3.3 billion by 2026, growing at a CAGR of 36.1% from 2021 to 2026. The market will be driven by the ability of artificial intelligence to improve data governance, business risk, and regulatory compliance. The global Regtech market is expected to grow by a CAGR of 48% by 2021-2026. Leading banks HSBC, Deutsche Bank and JP Morgan spends over $ 1 billion annually on Regtech. Banks are switching to be data driven company that is the biggest driving force to adopt Regtech along with AI. Regtech is not dealing with regulatory obligation effectively but also reduce the associated cost and risk. Business leaders are looking for the ways to sharpen their competitive edge, and are implementing AI to improve the standards, customer experience, and revenues and fast processing. 

Report Coverage

The report: Artificial Intelligence in Regtech Market– Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the AI in Regtech Market.

By Type – Solutions, Services.
By Application – Regulatory Compliance, Risk Management, Financial Crime, Identity Management, Compliance Support, Analytics, Automated Trading and Others.
By Operation Model – Unsupervised Learning, Supervised Learning, Reinforced Learning and Semi-Supervised Learning.
By Geography - North America (U.S, Canada, Mexico), South America(Brazil, Argentina and others), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Aus and Others), and RoW (Middle east and Africa).

Key Takeaways

  • AI in Regtech can improve data governance, business risk, and data compliance, and financial services technology. 
  • Regtech is being used in cyber security and data privacy. This factor elevates the demand for artificial intelligence market in Regtech.
  • Artificial intelligence can recognize patterns and connections among data that humans cannot recognize.
  • Robo - advisors keep monitoring the events, stocks, bond and price trend according to user’s requirement which help them in making suggestion regarding which stock needs to be sell or buy. They play a very important role in risk management, speech recognition, network security access to big data etc.
  • Artificial Intelligence in Regtech is allowing companies to cut down their cost, automate their process and reduce the chances of error.

Artificial Intelligence in Regtech Market, By Technology, 2020

Artificial Intelligence in Regtech Market, By Technology
For More Details on This Report - Request for Sample

Artificial Intelligence in Regtech Market Segment Analysis - By Application

Regulatory Compliance has dominated the AI in Regtech Market as compared to the other applications at 21.2% share in 2020 due to significant demand in regulatory technology to help financial institutions address risk management and regulatory compliance. Artificial intelligence are now deployed in Regtech too. AI can be used to automate the information and news discovery for KYC requirements onboarding, event driven refresh and remediation. By using customer’s internal policies, AI automatically constructs corporate ownership structures, discovers beneficial owners, and in minutes filters all relevant entities and persons for regulatory, reputational and financial risk. AI can monitor traders and understand their behavior and raises alarm when they perform something out of character. AI is playing major role by quickly assessing the large algorithms to protect from fraudulent cases. AI is used in modelling, scenario analysis and forecasting, particularly “stress test”.

Artificial Intelligence in Regtech Market Segment Analysis - By Business Model

Artificial intelligence and machine learning provide many opportunities when applied to regtech compliance. For instance Data mining algorithms based on machine learning can organise and analyze large data sets, even if they are of low quality. Machine learning improves the interpretation of low quality data outputs from payment systems. It can create risk models and self- improving methods for data analytics, modelling as required for stress testing. The best example of machine learning in Regtech is Algo Dynamix, which uses adaptive algorithms to find disruptions in finance. The analytics engine of the company uses primary data sources and machine learning to ward off trade fraud. This method helps the customer to detect any suspicious activity during financial instrument shifts. It can also predict about price movements. There has been a noticeable shift to reinforced and supervised learning in recent years to enhance the AI solutions.

Artificial Intelligence in Regtech Market Segment Analysis - By Geography

North America will dominate the Artificial Intelligence Market in Regtech during the forecast period and has a share of 46% in 2020. It is expected to significantly surpass Europe and Asia Pacific when it comes to spending in regulatory software in the next five years. 35% of the software spending is seen in Asia Pacific at present. AI acts as a bridge between the Regtech startups, regulatory bodies, and financial organisations. Since the compliance processes need collection and aggregation of huge amount of data, the Regtech startups in North America are helping banks to utilize this data from artificial intelligence.

Artificial Intelligence in Regtech Market Drivers

Technological Advancement driving new applications

Regtech sectors are innovating their products with the help of AI technology. Work Fusion provides intelligent automation software that has all the capabilities enterprise leaders that need to digitize business processes. The robotic process automation tools and AI are used to automate systems to record and store data. Onfido runs a program which performs background checks to verify people. AI algorithms are used to match a photo based identity document with a selfie. Text IQ uses artificial intelligence to protect its clients against from compliance disasters. Big analytics data is used by the company’s software to identify sensitive documents. Merlon Intelligence performs customer risk assessment. It focuses on how financial crime and compliance are managed. These advancements are developing new applications in the energy sector thereby driving the market.

Rising Demand for Regulatory Compliance

Regtech is application of technology to address regulatory challenges in finance sector. Regtech uses cloud computing technology through SaaS software to comply with businesses efficiently by reducing the cost. Regtech works in collaboration with financial companies along with regulatory bodies to share information. Regtech allows banks to boost their responsiveness to regulatory change. It aims to automate the process of compliance for financial services. AI in Regtech is using potential of computer to recognize pattern or making prediction with the help of technology in regulatory compliance.

Artificial Intelligence in Regtech Market Challenges

Lack of Expertise and Data

A noticeable trend in the Regtech sector is the lack of skilled personnel who can deploy and utilize AI effectively. There are only a limited number of personnel who have the skillset to utilize AI and improve regulatory compliance and risk management. Another challenge compounding this lack of expertise is the lack of data. Unlike most other sectors, there is a comprehensive lack of data collection in regtech sector compounded by the regulations in place to limit data sharing. The primary groups using AI within financial institutions are focused on research and strategy or for very niche applications. These two factors are interconnected, as the limited data will hinder the number of use cases that can be explored with AI. Thus, these two factors are hindering market growth.

Artificial Intelligence In Regtech Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the AI in Regtech Market. The AI in Regtech Market is dominated by major companies such as WorkFusion, Onfido, Text IQ, Merlon Intelligence, Ayasdi, Regis-tr, cube and others.

Acquisitions/Technology Launches/Partnerships

  • In June 2020, Identity Mind Global Provides anti-fraud and risk management services for digital transactions by tracking payment entities.
  • In January 2019, Suade, one of the leading Regtech provides a platform that keeps banks in line and up-to-date with the latest prudential requirements without bank’s disruption.

Relevant reports:

Report Code: ITR 0100

For more Information and Communications Technology Market reports, please click here

1. Artificial Intelligence In Regtech Market - Overview
    1.1. Definitions and Scope
2. Artificial Intelligence In Regtech Market - Executive summary
    2.1. Market Revenue, Market Size and Key Trends by Company
    2.2. Key Trends by type of Application
    2.3. Key Trends segmented by Geography
3. Artificial Intelligence In Regtech Market 
    3.1. Comparative analysis
        3.1.1. Product Benchmarking - Top 10 companies
        3.1.2. Top 5 Financials Analysis
        3.1.3. Market Value split by Top 10 companies
        3.1.4. Patent Analysis - Top 10 companies
        3.1.5. Pricing Analysis 
4. Artificial Intelligence In Regtech Market – Startup companies Scenario Premium Premium
    4.1. Top 10 startup company Analysis by
        4.1.1. Investment
        4.1.2. Revenue
        4.1.3. Market Shares
        4.1.4. Market Size and Application Analysis
        4.1.5. Venture Capital and Funding Scenario
5. Artificial Intelligence In Regtech Market – Industry Market Entry Scenario Premium Premium
    5.1. Regulatory Framework Overview
    5.2. New Business and Ease of Doing business index
    5.3. Case studies of successful ventures
    5.4. Customer Analysis – Top 10 companies
6. Artificial Intelligence In Regtech Market Forces
    6.1. Drivers
    6.2. Constraints
    6.3. Challenges
    6.4. Porters five force model
        6.4.1. Bargaining power of suppliers
        6.4.2. Bargaining powers of customers
        6.4.3. Threat of new entrants
        6.4.4. Rivalry among existing players
        6.4.5. Threat of substitutes 
7. Artificial Intelligence In Regtech Market - Strategic analysis
    7.1. Value chain analysis
    7.2. Opportunities analysis
    7.3. Product life cycle
    7.4. Suppliers and distributors Market Share
8. Artificial Intelligence In Regtech Market – Type (Market Size -$Million / $Billion)
    8.1. Market Size and Market Share Analysis 
    8.2. Application Revenue and Trend Research
    8.3. Product Segment Analysis
        8.3.1. Introduction
        8.3.2. Product
        8.3.3. Service
9. Artificial Intelligence In Regtech Market – By Technology (Market Size -$Million / $Billion)
    9.1. Introduction
    9.2. Machine Learning
    9.3. Deep learning
    9.5. NLP
    9.6. Others
10. Artificial Intelligence In Regtech Market – By Operation Model (Market Size -$Million / $Billion)
    10.1. Unsupervised Learning
    10.2. Supervised Learning
    10.3. Reinforced Learning
    10.4. Semi-supervised Learning
    10.5. Others
11. Artificial Intelligence In Regtech Market – By Application (Market Size -$Million / $Billion)
    11.1. AML (Anti money laundering)
    11.2. Risk Modelling
    11.3. KYC Regulations
    11.4. Employee Surveillance
    11.5. Case Management
    11.6. Reporting
    11.7. Analytics
    11.8. Documentation and Audit
    11.9. Automated Trading
12. Artificial Intelligence In Regtech - By Geography (Market Size -$Million / $Billion)
    12.1. Artificial Intelligence In Regtech Market - North America Segment Research
    12.2. North America Market Research (Million / $Billion)
        12.2.1. Segment type Size and Market Size Analysis 
        12.2.2. Revenue and Trends
        12.2.3. Application Revenue and Trends by type of Application
        12.2.4. Company Revenue and Product Analysis
        12.2.5. North America Product type and Application Market Size
   Rest of North America
    12.3. Artificial Intelligence In Regtech - South America Segment Research
    12.4. South America Market Research (Market Size -$Million / $Billion)
        12.4.1. Segment type Size and Market Size Analysis 
        12.4.2. Revenue and Trends
        12.4.3. Application Revenue and Trends by type of Application
        12.4.4. Company Revenue and Product Analysis
        12.4.5. South America Product type and Application Market Size
   Costa Rica
   Rest of South America
    12.5. Artificial Intelligence In Regtech - Europe Segment Research
    12.6. Europe Market Research (Market Size -$Million / $Billion)
        12.6.1. Segment type Size and Market Size Analysis 
        12.6.2. Revenue and Trends
        12.6.3. Application Revenue and Trends by type of Application
        12.6.4. Company Revenue and Product Analysis
        12.6.5. Europe Segment Product type and Application Market Size
   Rest of Europe
    12.7. Artificial Intelligence In Regtech – APAC Segment Research
    12.8. APAC Market Research (Market Size -$Million / $Billion)
        12.8.1. Segment type Size and Market Size Analysis 
        12.8.2. Revenue and Trends
        12.8.3. Application Revenue and Trends by type of Application
        12.8.4. Company Revenue and Product Analysis
        12.8.5. APAC Segment – Product type and Application Market Size
   South Korea
13. Artificial Intelligence In Regtech Market - Entropy
    13.1. New product launches
    13.2. M&A's, collaborations, JVs and partnerships
14. Artificial Intelligence In Regtech Market – Industry / Segment Competition landscape Premium Premium
    14.1. Market Share Analysis
        14.1.1. Market Share by Country- Top companies
        14.1.2. Market Share by Region- Top 10 companies
        14.1.3. Market Share by type of Application – Top 10 companies
        14.1.4. Market Share by type of Product / Product category- Top 10 companies
        14.1.5. Market Share at global level- Top 10 companies
        14.1.6. Best Practises for companies
15. Artificial Intelligence In Regtech Market – Key Company List by Country Premium Premium
16. Artificial Intelligence In Regtech Market Company Analysis
    16.1. Market Share, Company Revenue, Products, M&A, Developments
    16.2. Ayasdi
    16.3. Regis-tr
    16.4. cube
    16.5. Company 4
    16.6. Company 5
    16.7. Company 6
    16.8. Company 7
    16.9. Company 8
    16.10. Company 9
    16.11. Company 10