Regulatory Reporting Solutions Market

2016-2020 Regulatory Reporting Solutions Demand Outlook Compared to 2021-2031 Forecast

Regulatory reporting solution market is growing due to rising adoption of the solution in businesses. Financial solutions offered in the market are integrated with Machine Learning (ML) technology and Business Intelligence (BI) tools and analytics, which are enabling organizations get valuable insights and focus on reducing organizational risks.

Some of the key players such as Oracle Corporation, Moody’s Analytics, and others are following product launch strategy in order to offer innovative financial solutions.

The adoption of regulatory reporting solutions is high in banks and financial institutions as they aim to offer improved transparency. Besides this, it has become imperative for financial institutions to move from legacy architecture and complex operations to a more rational approach.

Consequently, an increasing number of firms are rolling out regulatory reporting to meet the current and future requirements and reduce the burden of operational cost. Regulatory reporting solution provides flexibility and scalability that works across all types of regulatory reporting per jurisdiction.

The regulatory reporting solutions market is estimated to rise at 14.8% CAGR between 2021 and 2031 in comparison to 11.1% CAGR registered during 2016-2020.

Continuous developments and implementation of new technologies across financial organization is creating growth opportunities. As per global Regulatory Reporting Solutions is anticipated to witness an increase in revenue from ~US$ 3.9 Bn in 2021 to ~US$ 15.5 Bn by 2031.

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How is Rising Adoption of Artificial Intelligence Affecting Demand for Regulatory Reporting Solutions?

As regulations governing financial institutions and banks are transforming, they have a growing challenge to keep pace and properly understand regulatory requirements and their impact.

For instance, in Europe there is standardized regulatory reporting requirements, but there are different versions in each European country with national requirement and different system of regulatory reporting.

Adopting artificial intelligence (AI) will significantly help the financial institutions for managing the regulatory changes and leveraging data to stay flexible and gain valuable insights.

AI can be used to automate large parts of regulatory reporting and serve as an independent validation mechanism for the end-to-end process of financial institution across all jurisdiction.

Enterprises are adopting machine learning platforms to curb the regulatory expense and minimize risk of non-compliance. Also these platforms help enterprises to keep track of global regulatory data and prompts alerts by detecting regulatory changes that can pose a compliance risk.

What Is the Impact of COVID-19 Crisis on Regulatory Reporting Solutions Demand?

The spread of the novel coronavirus has resulted in countries across the globe entering the lockdown with economic activity and daily life on hold for millions of people. Due to this, there is a disruptive impact on the financial sector.

Amid ongoing pandemic, banks are receiving request from both their routine customers and the general public for financial relief, and regulators have been encouraging them to negotiate to contain the crisis.

The involvement could result in positive or negative impact both on the operations and the balance sheet of the banks, depending on the type and quality of the regulation used.

The pandemic has accelerated digital transformation among financial firms. They are working hard for identifying the gaps that hurt performance and scale secure solutions quickly, while managing cost and risk. This rapid digitization of financial services help the banks to be serious about every aspect of their businesses, such as innovative payments solutions and blockchain technologies.

Banks are now identifying that a hybrid cloud infrastructure can help them track the operational and customer-facing programs supported by critical technologies such as AI and blockchain. At the same time they are trying to fulfill the demand for the stringent requirements of regulatory compliance, resiliency, and security.

Moreover, the increasing digitalization in financial firms amid global lockdowns due to COVID-19 outbreak is generating a strong demand for regulatory reporting solutions worldwide. Thus, the regulatory reporting solutions is estimated to witness a noteworthy growth from around 11% to 13% Y-o-Y from 2019 to 2021.

Country-wise Insights

How big is the Opportunity for Adoption of Regulatory Reporting Solutions in the U.K.?

EMEA is predicted to remain one of the most attractive markets during the forecast period. According to the study, U.K. is expected to account for nearly 21% of the EMEA market share in 2021.

The UK is the largest market for regulatory reporting solutions due to the strong presence of regulatory reporting solutions providers. Regulatory reporting requirements for banks are ever increasing, posing significant reporting challenge for banks in U.K.

Timely completion of all the documents and templates, ensuring consistency among them and compliance with regulatory requirements was a challenge for firms in U.K. Banking sector in U.K. is majorly adopting the regulatory reporting solutions as these solutions are helping banks in preparing documents and meet the regulators expectation whilst ensuring consistency.

Hence, the demand for regulatory reporting solutions would increase across the country, during the forecast period.

Why is Demand for Regulatory Reporting Solutions Increasing in the U.S.?

The regulatory reporting solutions market in the U.S. is expected to rise at an impressive CAGR of around 11% over the forecast period. The U.S. economy is increasingly powered by big data, platform business models, advanced analytics, and peer-to-peer networks. At the same time, innovation in the financial sector is dramatically changing the markets.

The demand for regulatory reporting solutions is drastically growing in the U.S. owing to the growing financial market and increased growth of insurance sectors in the country. Moreover stringent regulations and need to comply with them is propelling the growth of regulatory reporting solutions in the country.

How will the Sales Prospects for Regulatory Reporting Solutions unfold in India?

The sales in India is estimated to increase at an impressive rate of around 21% CAGR between 2021 and 2031. Data integrity and system integration are the major challenge that leads to data inaccuracy in data quality and inconsistency in maintaining data granularity.

Studies suggest that maximum banks in India are spending half of their time to prepare the regulatory reports and around 20% are managing and dedicating 50% of their time for review, analytics, and sign-offs.

The banking sector in the country is increasingly adopting various analytical techniques for maintaining and controlling their internal data. Ratio, trend, and variance analysis and different analytical techniques are being applied for ensuring the accuracy and completeness of data.  

However, there are still many of banks that are not having appropriate technology for performing analytics easily. So the banks are understanding the significance of automation for reducing the manual intervention and are adopting regulatory reporting solutions for streamlining the process of regulatory reporting, automating the recurring processes for simplifying process of report generation and managing that data that is collected from various sources by shifting to centralized data sources. 

Category-wise Insights

Why is the Demand for Regulatory Reporting Increasing?

Based on solution, demand for regulatory reporting software is expected to increase with a robust CAGR of nearly 15% over the forecast period. The adoption of regulatory reporting solution will increase in the coming years as this software helps in keeping track of the transactions that are executed.

The regulatory reporting software facilitates to keep record of details such as accounts, overall performance and others that helps in simplifying the task of report generation that is required for regulatory inquiries.

Moreover, increasing need for risk and compliance management is driving the growth of regulatory reporting software. Also the regulatory reporting software offers increased reliability and improved performance. However, all these factors are boosting the growth of regulatory reporting solutions.

How will Demand from Banking Support Growth?

The banking segment is expected to contribute a revenue share of close to 36% in 2021, and is expected to showcase a strong CAGR growth over the upcoming years owing to rapid digitization. The adoption of regulatory reporting solutions is increasing in banking sector due to shifting regulatory requirements and to monitor the increasing number of fraudulent activities.

There is increasing adoption of cloud-based regulatory reporting solution as cloud-based regulatory reporting solutions is intuitive to use and offers the most flexibility for administrators. Another key benefit that has helped fuel the growing popularity of cloud regulatory reporting solutions is scalability.

Competitive Landscape

Most of the leading players in the regulatory reporting solutions industry are coming with advanced and innovative solutions that meets the ever-changing demand from various industries. In addition, several companies are acquiring and entering into partnership with other companies to develop their own regulatory reporting solutions to serve their customers and reduce the churn rate.

• For instance, in August, Axiom SL inc entered into partnership with JWG, a financial service regulatory intelligence company. The partnership with JWG is helping Axiom SL to work with JWG’s new global derivative digital regulatory reporting framework that would help Axiom SL to collaborate with other trade association, regulators, software developers for regulatory reporting

Scope of Report

Key Points Covered in Regulatory Reporting Solutions Market Survey

• Which region is expected to showcase high growth in regulatory reporting solutions demand?

  EMEA is projected to register strong growth in the market, exhibiting a CAGR of nearly 18% during the forecast period.

• Which are some of the leading companies offering regulatory reporting solutions?

  Some of the leading companies in this landscape are Oracle, Workviva, Wolters Kluwer, Sopra Banking Software, Sovos Compliance among others. As per Future Market Insight, nearly 40%-45% of the market share is currently covered by the top 15 players.

• Who are the leading end users of regulatory reporting solutions? 

  Banking segment is expected to dominate the market over the forecast period, generating a maximum revenue, among all industries, by the end of 2021. However, the Insurance segment is estimated to boost majorly with a CAGR of over 18% during the forecast period.

• How much is the global regulatory reporting solutions market worth?

  The regulatory reporting solutions market was valued at ~US$ 3.5 Bn in 2020, and is estimated to grow at an exceptional pace with a CAGR of 14.8% to reach ~US$ 15.5 Bn in 2031.

• What will be the demand outlook/ sales forecast for regulatory reporting solutions?

  The demand for reporting solutions is expected to total ~US$ 3.9 Bn by the end of 2021, and is likely to reach ~US$ 15.5 Bn by 2031.

• What was the last 5 year regulatory reporting solutions market CAGR?

  The market in last 5 years (2016 – 2020) grew by a CAGR of 11.1%.

• What are the key trends of regulatory reporting solutions industry?

  Key trends in the market includes:

  • Increasing adoption of cloud-based regulatory reporting solutions systems in midsize and large enterprises
  • Artificial Intelligence to play an essential role in regulatory reporting

• What is driving demand for regulatory reporting solutions?

  Adoption of regulatory reporting solutions is increasing for streamlining regulatory reporting process, automate recurring processes to simplify report generation processes and manage data from multiple sources by shifting to centralized data sources these are the key factors driving the market growth.

• Which countries are key providers of regulatory reporting solutions?

  Countries involved in providing Regulatory Reporting Solutions include the China, Germany, U.K., Japan, and U.S.

• What is the global regulatory reporting solutions market growth between 2020 and 2021?

  The global market growth between 2020 and 2021 is 14.8%.

• Who are the top 5 countries driving demand for regulatory reporting solutions?

  Top 5 countries driving demand for regulatory reporting solutions include the India, China, Japan, Germany and U.K.

• What is the key market statistics in China and Japan?

  The regulatory reporting solutions demand in China and Japan was valued at ~US$ 189 Mn and ~US$ 162 Mn in 2020.

Regulatory Reporting Solutions Outlook by Category

By Solution:

• Regulatory Reporting Software
  • Cloud-based
  • On-premise
• Services
  • Managed Services
  • Professional Services
    • Integration & Implementation
    • Support & Maintenance
    • Consulting & Advisory

By Industry:

• Banking
• Insurance
• Wealth & Asset Management
• Securities & Investments
• Others

By Region:

• North America
• Latin America
• EMEA (Europe, Middle East & Africa)
• APAC