regtech spending juniper research
AI Insights Intelligence Regtech World-Region-Country

Up and up for Regtech as Spending Is Set To Soar 200 per Cent; Finds Latest Juniper Research Insight

Global regtech spending is set to exceed $204billion by 2026; accounting for over half of all regulatory compliance spending for the first time ever. 

This is according to a newly released study from Juniper Research, which above all else, identified the integration of regtech services with banking-as-a-service (BaaS) models as key to realising this future market growth.

Aside from the fact that regtech spending is expected to surpass $204billion within the next four years, the study delves deeper into this statistic, emphasising the 200 per cent growth that’s to be expected from the $68billion spent in this year alone.

The research predicts that BaaS models, which include outsourcing regtech services such as digital onboarding, will be key in accelerating AI-based automation for online document verification and know your customer (KYC) processes.

BaaS to facilitate AI-based regtech

AI-powered onboarding enables financial institutions to benefit from real-time progress reporting and automation, which help meet rising client expectations and reduce compliance costs.

According to the research, 26 per cent of digital onboarding processes in the banking market will use AI systems by 2026, compared to just eight per cent in 2022.

Beyond digital onboarding, the report suggests that regtech will leverage BaaS models to swiftly expand the use of AI in banking for more comprehensive tasks, including fraud detection and mitigation.

Harshada Thok Juniper research
Harshada Thok

Harshada Thok, the research’s author, explains: “Whilst the current benefits of AI are clear to regtech vendors, the immediate focus must be on ensuring the algorithms are fed the most relevant data to maximise their efficiency in verifying digital identities and future use cases.

“In turn, this will provide a differentiation point for regtech vendors in an increasingly competitive market.”

Healthcare and gambling to provide the next regtech opportunities

Additionally, regtech vendors must provide verification services in emerging areas where compliance is being disrupted, such as cryptocurrency exchanges, digital healthcare and online gambling.

Impending changes to regulations in these markets will provide significant opportunities for regtech vendors to broaden their focus beyond financial markets to capitalise on new addressable user bases.

Find the full report ‘Regtech: Emerging Trends, Regulatory Impact and Market Forecasts 2022-2026here.


  • Tyler is a fintech journalist with specific interests in online banking and emerging AI technologies. He began his career writing with a plethora of national and international publications.

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