In a recent article it was noted that - “The global RegTech market is forecasted to grow by almost $10bn between 2020 and 2025, from $6.3bn to $16bn – a rate of over 20% per year. Furthermore, the APAC region is expected to see the highest growth rate during this time.” https://member.fintech.global/2021/06/29/covid-19-accelerates-demand-for-regtech-solutions-in-asia-report-finds/
It has been reported that the European Banking Authority (EBA) is looking at common rules to encourage wider use of RegTech - https://www.reuters.com/article/businessNews/idUSKCN2E50WK
Complying with what is an ever-evolving set of rules and regulations is challenging. Spending more money to adhere to regulatory requirements and fight 21st century threats with 20th century tools is not sustainable. In the past few years, the RegTech industry has developed exponentially to assist businesses by streamlining and automating processes to make compliance more efficient and effective. In conjunction with using RegTech, firms should also seek independent legal advice on whether action should be taken in order not to contravene regulations.
Please note this article was written by Annette Fong, who is no longer with Ince. If you would like any advice in this regard, please contact Julia Dao.
The lack of common regulatory standards across EU states for a growing subsector could pose barriers for wider market adoption of RegTech, the EBA said.