KUALA LUMPUR, Sept 24 -- The value of regtech spending is forecasted to exceed US$127 billion by 2024, up from US$25 billion this year, according to new data from Juniper Research. (US$1 = RM4.18)
This 400 per cent growth will be driven by a dramatic rise in the automation of resource-intensive tasks, such as those involved in Know Your Customer (KYC) checks and increasing use of artificial intelligence (AI) in transaction monitoring.
According to the research titled, ‘Regtech: Cost Savings, Technological Impact & Vendor Analysis 2019-2024’, AI is ideally suited to regulatory space, as it can dynamically reduce false positive and false negative rates.
It can lead to significant time, resource and ultimately cost savings for compliance monitoring processes.
The combined cost savings for KYC checks for banking and property sales will be almost US$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 and increasing overall user satisfaction.
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.
More details on the research at https://www.juniperresearch.com
-- BERNAMA
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