Insurers will spend $634 million on RPA (Robotic Process Automation) solutions by 2024, rising from $184 million in 2019; a 245 per cent increase over the next five years, according to new data from Juniper Research.
According to the research, Regtech: Cost Savings, Technological Impact & Vendor Analysis 2019-2024, global regulatory compliance spending will increase from just under $278 billion to more than $316 billion over the next five years, with no anticipated relaxation of regulatory rigour over the forecast period and the ever-increasing spectre of financial penalties for non-compliance.
Juniper Research forecasts that growth in West Europe will be driven by potentially divergent regulatory rules mandated by the UK and the EU following Brexit. While disruptive, this will create additional opportunities for regtech in the region.
According to the study the combined cost savings for KYC checks for banking and property sales will near $1 billion by 2024; a growth of 690 per cent. The impetus for this will be efficiency savings, as well as the enhanced user experience that can be implemented in customer onboarding. This will reduce user frustration by improving response times; increasing overall user satisfaction.
As the financial systems of developing regions become more advanced, so will their needs for regtech solutions; these regions will have increased regtech spending in the longer term. The report recommends that organisations invest in the cost-saving potential of AI and cautions that although AI has vast potential, its use must be in line with overall business objectives or deployments will invariably fail to meet expectations.
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