These systems enable banks and other heavily regulated sectors to meet their compliance burdens
Juniper Research has found that spending on Regtech systems will exceed $130 billion in 2025, from $33 billion in 2020.
The report found that greater use of AI to automate highly manual tasks and the transition to digital onboarding will drive this 290% growth.
In addition to that, nearly 330 million new bank accounts will be opened via digital onboarding in 2025, from 184 million in 2020. Ultimately, consumers will continue to use digital onboarding in ever-greater numbers and, as such, vendors must design long-term strategies that support this.
Juniper Research has also revealed that nearly 18% of banking digital onboarding in 2025 globally will use AI systems, compared to under 4% in 2020. The report identified that the introduction of AI in areas like identity document verification means that businesses can move from their still largely manual processes to a fully digital model of KYC. This will provide cost savings of over $460 million in banking onboarding alone.
We’ve reported that digital tech is expected to eliminate millions of jobs.