What Percent of Financial Services’ IT Budgets Are Devoted to Regulatory Technology?

• As of 2017, the cost of regulatory compliance is equal to 14.3% of IT budgets on average
• That’s a 30% increase in compliance costs over the last 6 years
• The regtech market’s compound annual growth rate is 25% through 2023, growing to revenues of $7.2 billion
• Solution categories in the regtech market include:

• Data management
• Reporting
• AML/KYC
• Risk management
• Records management
• Change management
• Governance

• More than $9 billion was invested in regtech firms between 2014 & 2018
• In 2018 alone, $4.5 billion was invested in reg tech firms
• The bulk of the regtech investments have been in the AML/KYC space

Is Too Much Regulation Bad?

Too much regulation ‘hampers fight against financial crime’

From GT News –

“A growing regulatory burden, increased personal liabilities on compliance professionals, barriers to greater collaboration and evolving criminal methodologies represent the most significant challenges to banks’ ability to combat financial crime.

The finding is part of the newly-published Future Financial Crime Risks report, produced by analytics group LexisNexis Risk Solutions with support from the British Bankers Association (BBA). The report provides a review of financial crime and its evolving risks.”

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