Industry research
Scope
US
Companies
84
Table of contents
What does the RegTech market landscape look like in the US?
North America plays a major role in the global RegTech market, with >45% of the world’s top 100 RegTech companies based in the region (McKinsey & Company, August 2025). Within the region, the US RegTech market remains fragmented. The generalist segment features diversified software giants (e.g. IBM) alongside pureplay RegTech vendors (e.g. Diligent). The financial services and healthcare segments primarily comprise pureplay RegTech providers that focus on specific regulatory niches. In financial services, players specialize in AML, KYC and transaction monitoring, among others. In healthcare, identified businesses concentrate on compliance domains like credentialing, data security and patient safety. Across segments, providers are enhancing interoperability and configurability to manage evolving regulatory demands. In the near future, specialized RegTech providers focused on financial crime and cybersecurity are expected to continue outperforming broader end-to-end vendors. The industry is witnessing heightened M&A activity as both incumbents and sponsor-backed players aim to build comprehensive end-to-end platforms combining regulatory intelligence, risk management and analytics capabilities within a single suite.
What is the level of investor activity in the US's RegTech industry?
Investor-led interest has been significant, with ~83% of identified US assets being backed by financial sponsors (October 2025). Herein, investor interest is fueled by (i) recurring revenue streams from subscriptions, supported by a sticky customer base, (ii) integration of technology (e.g. AI) that boosts efficiency and accuracy and (iii) greater adoption driven by rising costs and complexity associated with regulatory compliance. The main detractors relate to (i) integration hurdles with legacy IT systems that complicate RegTech deployment, (ii) operational challenges from frequent platform upgrades needed to meet evolving regulations and (iii) a structural shortage of RegTech professionals.
What are the key ESG considerations in the US's RegTech industry?
ESG topics in the US RegTech market primarily revolve around governance considerations. Algorithmic transparency and accountability are notable concerns, as AI-driven compliance systems make critical decisions that demand fairness, clarity and consistency. In response, players introduce AI governance frameworks focused on transparency, ethical design and bias mitigation. Another key issue is data privacy and protection, as RegTech platforms manage large volumes of sensitive information. To address this, firms strengthen data governance through encrypted storage, continuous monitoring, client data isolation and independent security audits.
According to AscentAI (October 2025), the global RegTech market is expected to grow from ~$19.6bn in value in 2025 to ~$82.8bn by 2032 (+22.8% CAGR 2025-2032)
The global anti-money laundering (AML) software market is expected to grow from ~$3.1bn in revenue in 2023 to ~$6.7bn by 2028 (+16.5% CAGR 2023–2028; Technavio, September 2024)
The escalating costs of manual, workforce-driven compliance accelerate the adoption of RegTech. For instance, financial firms dedicate up to 15% of their workforce to compliance functions, while healthcare providers face administrative costs of up to ~$9m annually per hospital (~160 beds). These costs are expected to increase further as wages for compliance professionals continue to rise (Speednet, June 2025; Planet Compliance, April 2024)
The adoption of AI and machine learning transforms RegTech by enhancing the speed and accuracy while reducing the cost of regulatory compliance. These technologies analyze vast transaction data in real time to detect anomalies and predict emerging risks, capabilities that traditional systems cannot achieve (Deloitte, October 2025; Comply, May 2025; RelyComply, December 2024)
The accelerating pace and complexity of regulatory change have made RegTech adoption essential for financial institutions. As updates to frameworks (e.g. FINRA and the Bank Secrecy Act) become more frequent and intricate, firms continue to deploy advanced RegTech tools to ensure compliance and operational agility (FinTech Global, June 2025; FinTech Circle, March 2023)
Delays in upgrading legacy IT infrastructure continue to pose challenges to RegTech integration. Many financial institutions remain focused on maintaining outdated systems rather than transitioning to modern infrastructure, resulting in higher implementation costs and slower project delivery (Planet Compliance, April 2024)
A structural talent shortage in the RegTech sector is expected to persist, as demand for skilled professionals in AI, data science and regulatory compliance continues to outpace supply. This imbalance is likely to delay product development, extend deployment timelines and heighten competition for specialized talent across the FinTech ecosystem (Fintech District, February 2025; Deloitte, March 2020)
The rising frequency and complexity of regulatory changes force players to invest continuously in updating their RegTech offerings. This constant need for upgrades increases operational costs and is expected to weigh on profitability (FinTech Global, June 2025; FinTech Circle, March 2023)
With the full report, you’ll gain access to:
Detailed assessments of the market outlook
Insights from c-suite industry executives
A clear overview of all active investors in the industry
An in-depth look into 84 private companies, incl. financials, ownership details and more.
A view on all 435 deals in the industry
ESG assessments with highlighted ESG outperformers
