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 Global spending on regtech (regulatory technology) by financial institutions and other industries will increase by 124 per cent to reach $207 billion by 2028 from $83 billion this year, a report showed on Monday.

Regtech is a subset of fintech focusing on technology that can enable the delivery of regulatory requirements more efficiently and effectively than existing capabilities.

According to the report by Juniper Research, increasingly complex regulatory requirements are driving corporates to adopt a range of new technologies to facilitate compliance.

"New approaches include the use of shared blockchain ledgers to improve anti-money laundering, and fraud compliance at cryptocurrency exchanges. Natural language processing is also being used to detect malicious actors in emails and phone calls," the report noted.

The research found that the leading players offered streamlined identity verification automated by AI, and were able to successfully position themselves in many different industries, as regtech expands beyond just financial services.

In order to stay ahead of their competition, vendors must develop solutions that utilise AI and machine learning, which can automate processes such as identity verification.

"The most successful vendors will leverage AI to reduce the manual requirements needed by compliance teams and allow them to focus on tasks that require human elements; lowering costs and increasing productivity significantly, at a time of strong cost pressures," the findings showed.