U.S. RegTech Market - Industry Outlook & Forecast 2023-2028

U.S. RegTech Market - Industry Outlook & Forecast 2023-2028

The U.S. RegTech market is expected to grow at a CAGR of 21.54% during 2022-2028

MARKET TRENDS AND DRIVERS

Growing Fraudulent Activities

The increasing fraud and money laundering activities have expanded the U.S. RegTech market. Fraudulent activities such as money laundering require a RegTech framework to help risk and compliance teams manage complex regulatory compliance requirements. Digital fraud attacks in financial service organizations have increased by 109% in the US. Digital fraud includes any online scams or fraudulent transactions.

Adoption of AI in RegTech Industry

Artificial Intelligence (AI) is becoming popular and is witnessing increasing use across multiple fields due to generating significant amounts of data daily, which is difficult to deal with manually. AI technology is providing new opportunities and advantages with the potential for enormous economic and societal impact. Recent technological developments in big data, computing, data storage power, and the digital economy facilitate rapid AI implementation in various sectors, including finance. Competitive pressures in the financial sector are increasing the adoption of AI widely and rapidly changing its landscape. AI facilitates improvements in reshaping client interfaces, efficiency, and cost savings, improving risk management and compliance, and enhancing forecasting accuracy.

INDUSTRY RESTRAINTS

Cybersecurity and Consumer Data Privacy

Cyber threat is a key challenge in the regulatory technology ecosystem. While the automated compliance of RegTech lessens operational risks and allows more granular checks for internal frauds and AML, it also presents a challenge of cyber risks. Common risks are sabotage, data breach, and data or identity theft – internal, external, and state-sponsored which can have immense and extensive consequences. Before, the technologies found to be safe, like biometric authentication, have become attack mediums. However, the usage of novel technologies with mischievous intentions spanning everything from deep fakes to machine learning is also rising. Thereby posing challenges to the growth of the U.S. RegTech market.

SEGMENTATION INSIGHTS

INSIGHTS BY COMPONENT

The U.S. RegTech market by component is segregated into solutions and services. In 2022, the solutions segment was the highest revenue contributor. RegTech solutions mainly focus on maintaining compliance with anti-money laundering (AML) and knowing your customer (KYC) regulations. These solutions are typically based on artificial intelligence-driven applications created using machine learning technology. RegTech solutions offer various purposes and functionality, including fraud prevention, risk management, know-your-customer (KYC) technology, and regulatory change discovery applications.

Segmentation by Component

  • Solutions
  • Services
INSIGHTS BY ORGANIZATION SIZE

The large enterprises' organization size segment held the largest U.S. RegTech market, accounting for over 63% share in 2022. RegTech is becoming progressively more important for large enterprises, mainly in the financial services industry, as it helps fulfill the increasing demand for regulatory compliance while enhancing operational efficiency. To improve operational efficiency, compliance, and customer experience and reduce cost, large enterprises are increasingly investing in RegTech solutions. Large enterprises adopt RegTech solutions based on their specific regulatory and business requirements. Some of the major revenue contributors in this segment are leading financial services, healthcare providers, insurance, and others.

INSIGHTS BY DEPLOYMENT TYPE

The cloud-based RegTech solutions offer faster deployment, limited capital and operational expenditure, pay-as-you-grow model availability, integrations APIs, unlimited storage, scalability, redundant infrastructure, and reduced dependency on the internal IT support team. The cloud-based segment is the highest revenue contributor to the U.S. RegTech market. Cloud-based RegTech services are highly suitable for organizations migrating IT applications and business processes to the cloud. The vendors in the U.S. RegTech market are highly competitive in terms of pricing and customer support. Since the inception time of cloud-based RegTech services, multiple local and global vendors have provided RegTech services to end-users.

INSIGHTS BY VERTICAL

The U.S. RegTech market by vertical is segregated by banking, insurance, and non-financial. In 2022, the banking segment accounted for over 52% of the market revenue. RegTech solutions are having a considerable impact on the banking industry. Banks use RegTech solutions for their operation's security, cost-effectiveness, and efficiency. RegTech helps banks by using technological advancements in artificial intelligence, data mining, machine learning, blockchain, automation, and others to manage risks, optimize processes, and solve problems for regulatory compliance.

INSIGHTS BY APPLICATION

The risk and compliance management application segment is expected to be the largest in the U.S. RegTech market. RegTech uses innovative techniques and capabilities to assist organizations in enhancing their reporting, regulatory governance, compliance, and risk management. It helps make regulatory compliance more manageable and hastens digital optimization and business growth; when implemented, it improves risk management efforts.

REGIONAL ANALYSIS

The U.S. RegTech market is witnessing dynamic expansion. Organizations worldwide are tasked with complying with a broad range of new and existing regulations and are worried their prevailing technology can’t keep up. This concern has led to a surge in RegTech investments in the U.S. and worldwide. To simplify and streamline compliance, data management, reporting, risk management, and more, firms are turning to RegTech startups’ technology. As the RegTech market matures, some cosmopolitan cities strive for the top globally in terms of deal activity. Among those are New York, San Francisco, Palo Alto, Boston, Seattle, etc. Thus, the cities coming from the US dominate the charts worldwide. This is expected given the strong fintech innovation hubs formed in San Francisco and New York.

COMPETITIVE LANDSCAPE

The presence of many players in the market characterizes the U.S. RegTech market. The rising competition pressures various vendors to continuously innovate their offerings with a unique value proposition to survive in the market. Companies must invest significant money in R&D to introduce new technologies and enhance their offerings. Ascent, Chainalysis, Broadridge, Deloitte, and IBM are among the key players in the market. Other players operating in the U.S. RegTech market include ACTICO, Clausematch, ComplyAdvantage, Fenergo, Onfido, PaymentWorks, and others. The rising competition pressures various vendors to continuously innovate their offerings with a unique value proposition to survive in the market. Although established players dominate the industry, new entrants have tremendous growth opportunities.

Key Vendors
  • Ascent
  • Chainalysis
  • Broadridge
  • Deloitte
  • IBM
Other Prominent Vendors
  • ACTICO
  • Clausematch
  • ComplyAdvantage
  • Fenergo
  • Onfido
  • PaymentWorks
  • Jumio
  • Acuant
  • MetricStream
  • NICE
  • PwC
  • Thomson Reuters
  • Wolters Kluwer
  • Ceptinel
  • Hummingbird
  • CyberGRX
  • Exiger
  • FixNix
  • Feedzai
  • Sensa
  • DataVisor
  • TruNarrative
  • Alessa
  • Tessian
  • Corlytics
KEY QUESTIONS ANSWERED:

1. How big is the U.S. RegTech market?

2. What is the growth rate of the U.S. RegTech market?

3. What are the significant trends impacting the U.S. RegTech industry?

4. What are the U.S. RegTech market segments?

5. Who are the key players in the U.S. RegTech market?


1 RESEARCH METHODOLOGY
2 RESEARCH OBJECTIVES
3 RESEARCH PROCESS
4 SCOPE & COVERAGE
4.1 MARKET DEFINITION
4.1.1 INCLUSIONS
4.1.2 EXCLUSIONS
4.1.3 MARKET ESTIMATION CAVEATS
4.2 BASE YEAR
4.3 SCOPE OF THE STUDY
4.4 MARKET SEGMENTATION
4.4.1 MARKET SEGMENTATION BY COMPONENT
4.4.2 MARKET SEGMENTATION BY ORGANIZATION SIZE
4.4.3 MARKET SEGMENTATION BY DEPLOYMENT TYPE
4.4.4 MARKET SEGMENTATION BY VERTICAL
4.4.5 MARKET SEGMENTATION BY APPLICATION
5 REPORT ASSUMPTIONS & CAVEATS
5.1 KEY CAVEATS
5.2 CURRENCY CONVERSION
5.3 MARKET DERIVATION
6 MARKET AT A GLANCE
7 PREMIUM INSIGHTS
7.1 MARKET OVERVIEW
7.2 MARKET DYNAMICS: KEY TRENDS, DRIVERS, AND RESTRAINTS
7.2.1 MARKET TRENDS
7.2.2 MARKET DRIVERS
7.2.3 MARKET RESTRAINTS
7.3 SEGMENT ANALYSIS
7.4 REGIONAL ANALYSIS
7.5 COMPETITIVE LANDSCAPE
7.6 ABOUT THE REPORT
8 INTRODUCTION
8.1 OVERVIEW
8.1.1 HOW REGTECH IS TRANSFORMING BUSINESS AND POLICY
8.1.2 REGTECH AND DECENTRALIZED TECHNOLOGY
8.2 FACTORS CONTRIBUTING TO GROWTH OF REGTECH COMPANIES
8.3 REGTECH PROCESS
8.4 TECHNOLOGIES SUPPORTING REGTECH SOLUTIONS
8.5 REGTECH ROADMAP
8.6 US FRAUD COSTS
9 MARKET OPPORTUNITIES & TRENDS
9.1 ADOPTION OF AI IN REGTECH INDUSTRY
9.2 REGTECH FOR NON-FINANCIAL INSTITUTIONS
9.3 ADOPTION OF NEW TECHNOLOGIES
10 MARKET GROWTH ENABLERS
10.1 INCREASING COST OF COMPLIANCE
10.2 GROWING FRAUDULENT ACTIVITIES
10.3 GROWING NEED FOR FASTER TRANSACTIONS
10.4 REGULATORY SANDBOX APPROACH SUPPORTS REGTECH INNOVATIONS
11 MARKET RESTRAINTS
11.1 CYBERSECURITY AND CONSUMER DATA PRIVACY
11.2 LACK OF DATA STANDARDIZATION
12 MARKET LANDSCAPE
12.1 MARKET SIZE & FORECAST
12.1.1 CRYPTO ADOPTION
12.1.2 COMPETITIVE OVERVIEW: IDENTITY AND TRUST, NOT ANONYMITY
12.1.3 US BLOCKCHAIN ANALYTICS PLAYERS
12.2 FIVE FORCES ANALYSIS
12.2.1 THREAT OF NEW ENTRANTS
12.2.2 BARGAINING POWER OF SUPPLIERS
12.2.3 BARGAINING POWER OF BUYERS
12.2.4 THREAT OF SUBSTITUTES
12.2.5 COMPETITIVE RIVALRY
13 COMPONENT
13.1 MARKET SNAPSHOT & GROWTH ENGINE
13.2 MARKET OVERVIEW
13.3 SOLUTIONS
13.3.1 MARKET SIZE & FORECAST
13.4 SERVICES
13.4.1 MARKET SIZE & FORECAST
14 ORGANIZATION SIZE
14.1 MARKET SNAPSHOT & GROWTH ENGINE
14.2 MARKET OVERVIEW
14.3 LARGE ENTERPRISES
14.3.1 MARKET SIZE & FORECAST
14.4 SMALL AND MEDIUM ENTERPRISES (SMES)
14.4.1 MARKET SIZE & FORECAST
15 DEPLOYMENT TYPE
15.1 MARKET SNAPSHOT & GROWTH ENGINE
15.2 MARKET OVERVIEW
15.3 CLOUD-BASED
15.3.1 MARKET SIZE & FORECAST
15.4 ON-PREMISES
15.4.1 MARKET SIZE & FORECAST
16 VERTICAL
16.1 MARKET SNAPSHOT & GROWTH ENGINE
16.2 MARKET OVERVIEW
16.3 BANKING
16.3.1 MARKET SIZE & FORECAST
16.4 INSURANCE
16.4.1 MARKET SIZE & FORECAST
16.5 NON-FINANCIAL
16.5.1 MARKET SIZE & FORECAST
17 APPLICATION
17.1 MARKET SNAPSHOT & GROWTH ENGINE
17.2 MARKET OVERVIEW
17.3 RISK AND COMPLIANCE MANAGEMENT
17.3.1 MARKET SIZE & FORECAST
17.4 IDENTITY MANAGEMENT
17.4.1 MARKET SIZE & FORECAST
17.5 REGULATORY REPORTING
17.5.1 MARKET SIZE & FORECAST
17.6 AML AND FRAUD MANAGEMENT
17.6.1 MARKET SIZE & FORECAST
17.7 REGULATORY INTELLIGENCE
17.7.1 MARKET SIZE & FORECAST
18 COMPETITIVE LANDSCAPE
18.1 COMPETITION OVERVIEW
19 KEY COMPANY PROFILES
19.1 ASCENT
19.1.1 BUSINESS OVERVIEW
19.1.2 SERVICE OFFERINGS
19.1.3 KEY STRATEGIES
19.1.4 KEY STRENGTHS
19.1.5 KEY OPPORTUNITIES
19.2 CHAINALYSIS
19.2.1 BUSINESS OVERVIEW
19.2.2 SERVICE OFFERINGS
19.2.3 KEY STRATEGIES
19.2.4 KEY STRENGTHS
19.2.5 KEY OPPORTUNITIES
19.3 BROADRIDGE
19.3.1 BUSINESS OVERVIEW
19.3.2 SERVICE OFFERINGS
19.3.3 KEY STRATEGIES
19.3.4 KEY STRENGTHS
19.3.5 KEY OPPORTUNITIES
19.4 DELOITTE
19.4.1 BUSINESS OVERVIEW
19.4.2 SERVICE OFFERINGS
19.4.3 KEY STRATEGIES
19.4.4 KEY STRENGTHS
19.4.5 KEY OPPORTUNITIES
19.5 IBM
19.5.1 BUSINESS OVERVIEW
19.5.2 SERVICE OFFERINGS
19.5.3 KEY STRATEGIES
19.5.4 KEY STRENGTHS
19.5.5 KEY OPPORTUNITIES
20 OTHER PROMINENT VENDORS
20.1 ACTICO
20.1.1 BUSINESS OVERVIEW
20.1.2 SERVICE OFFERINGS
20.2 CLAUSEMATCH
20.2.1 BUSINESS OVERVIEW
20.2.2 SERVICE OFFERINGS
20.3 COMPLYADVANTAGE
20.3.1 BUSINESS OVERVIEW
20.3.2 SERVICE OFFERINGS
20.4 FENERGO
20.4.1 BUSINESS OVERVIEW
20.4.2 SERVICE OFFERINGS
20.5 ONFIDO
20.5.1 BUSINESS OVERVIEW
20.5.2 SERVICE OFFERINGS
20.6 PAYMENTWORKS
20.6.1 BUSINESS OVERVIEW
20.6.2 SERVICE OFFERINGS
20.7 JUMIO
20.7.1 BUSINESS OVERVIEW
20.7.2 SERVICE OFFERINGS
20.8 ACUANT
20.8.1 BUSINESS OVERVIEW
20.8.2 SERVICE OFFERINGS
20.9 METRICSTREAM
20.9.1 BUSINESS OVERVIEW
20.9.2 SERVICE OFFERINGS
20.10 NICE
20.10.1 BUSINESS OVERVIEW
20.10.2 SERVICE OFFERINGS
20.11 PWC
20.11.1 BUSINESS OVERVIEW
20.11.2 SERVICE OFFERINGS
20.12 THOMSON REUTERS
20.12.1 BUSINESS OVERVIEW
20.12.2 SERVICE OFFERINGS
20.13 WOLTERS KLUWER
20.13.1 BUSINESS OVERVIEW
20.13.2 SERVICE OFFERINGS
20.14 CEPTINEL
20.14.1 BUSINESS OVERVIEW
20.14.2 SERVICE OFFERINGS
20.15 HUMMINGBIRD
20.15.1 BUSINESS OVERVIEW
20.15.2 SERVICE OFFERINGS
20.16 CYBERGRX
20.16.1 BUSINESS OVERVIEW
20.16.2 SERVICE OFFERINGS
20.17 EXIGER
20.17.1 BUSINESS OVERVIEW
20.17.2 SERVICE OFFERINGS
20.18 FIXNIX
20.18.1 BUSINESS OVERVIEW
20.18.2 SERVICE OFFERINGS
20.19 FEEDZAI
20.19.1 BUSINESS OVERVIEW
20.19.2 SERVICE OFFERINGS
20.20 SENSA
20.20.1 BUSINESS OVERVIEW
20.20.2 SERVICE OFFERINGS
20.21 DATAVISOR
20.21.1 BUSINESS OVERVIEW
20.21.2 SERVICE OFFERINGS
20.22 TRUNARRATIVE
20.22.1 BUSINESS OVERVIEW
20.22.2 SERVICE OFFERINGS
20.23 ALESSA
20.23.1 BUSINESS OVERVIEW
20.23.2 SERVICE OFFERINGS
20.24 TESSIAN
20.24.1 BUSINESS OVERVIEW
20.24.2 SERVICE OFFERINGS
20.25 CORLYTICS
20.25.1 BUSINESS OVERVIEW
20.25.2 SERVICE OFFERINGS
21 REPORT SUMMARY
21.1 KEY TAKEAWAYS
21.2 STRATEGIC RECOMMENDATIONS
22 QUANTITATIVE SUMMARY
22.1 MARKET BY COMPONENT
22.2 MARKET BY ORGANIZATION SIZE
22.3 MARKET BY DEPLOYMENT TYPE
22.4 MARKET BY VERTICAL
22.5 MARKET BY APPLICATION
23 APPENDIX
23.1 ABBREVIATIONS

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