Why RegTech is the industry to watch in 2025

Regulatory Technology, or RegTech, is playing an increasingly crucial role in helping financial institutions and businesses navigate the ever-evolving global regulatory landscape. It enables firms to connect the dots between short-term compliance challenges and long-term strategic objectives, positioning themselves for success in a dynamic market.

The Global RegTech Market size is expected to reach $60.7 billion by 2030. While RegTech is not a new concept, its rapid evolution is transforming the regulatory landscape by offering technologically advanced solutions to meet the growing demands of compliance within the financial industry.

Here, we’ll explore why RegTech is a game-changer, providing a roadmap for businesses to manage regulatory complexities efficiently and effectively.

What is RegTech?

RegTech is designed to help businesses adhere to compliance requirements more efficiently and cost-effectively. It leverages advanced technology, including innovations such as machine learning, biometrics, and blockchain, to streamline compliance processes and mitigate risks.

How Does RegTech Work?

RegTech enhances compliance by automating workflows, generating accurate and timely reports, and managing regulatory documentation seamlessly. It also supports risk management by assessing and mitigating compliance risks in real-time.

Key functionalities include:

• Automated data collection and standardisation
• Real-time monitoring of regulatory changes
• Rule engines for interpreting and applying complex regulatory requirements

In the UK, there has been generous investment into RegTech from the government to help financial services companies remain low-risk and compliant. It’s a rapidly growing and agile sector, but is it all plain sailing? 

What challenges are regulatory professionals facing?

Despite its many advantages, RegTech professionals still face several challenges, particularly within the financial services sector. Some of the most pressing issues include:

• Insufficient governance – Many organisations struggle with aligning regulatory compliance efforts across various departments, leading to inefficiencies.
• Poor integration with existing technology ecosystems – Legacy systems can make it difficult to incorporate new RegTech solutions effectively.
• Data integrity risks – Data corruption or unexpected changes during storage, access, or processing can compromise compliance efforts.

There have been challenges with limited control of master data between functions. Master data represents all the data critical to the operation of a business, for example, customer information, which could result in losses to the business if missing or mismanaged. 

Addressing these challenges is crucial for businesses to fully leverage the benefits of RegTech and maintain compliance in an evolving regulatory environment.

How is regulatory reporting changing in banking and investment?

In the PRA’s Future Approach to Policy (DP4/22), the PRA announced it was launching a Banking Data Review (BDR). The review will look at what data it collects currently and what data the PRA needs now and in future. In its February 2025 policy statement (PS3/25), the PRA outlines a new, more structured approach to policymaking, with a focus on clarity, accountability, and long-term competitiveness.

As part of this new framework, the PRA has committed to increasing transparency around its policy development process, including how it considers the impact of regulation on UK competitiveness and economic growth. The PRA now operates under a formal secondary objective to facilitate these outcomes, which will likely shape future regulatory reporting requirements to be more proportionate and outcome-driven.

In the UK, for example, the Financial Conduct Authority (FCA) is partnering with numerous financial services organisations in Phase 2 of its digital regulatory reporting pilot and looking at how to convert regulation into code. 

What Candidate Profiles Are RegTech Companies Seeking?

As RegTech continues to evolve, the demand for skilled professionals is increasing. Financial services professionals looking to transition into RegTech must be well-versed in the latest regulatory developments and technological advancements.

Key candidate profiles in high demand include:

• Qualified Accountants with International Financial Reporting Standards (IFRS) experience – These professionals are sought after due to their ability to navigate complex financial regulations across different markets.
• Regulatory specialists with 2-3 years of experience in compliance roles – Professionals with a background in regulatory environments are valuable assets to financial services organisations adapting to new regulations.

With the regulatory landscape becoming more complex, businesses are prioritising candidates who can bridge the gap between finance, compliance, and technology.

Addressing the Talent Shortage in RegTech Jobs

The rising demand for skilled professionals in RegTech has led to a talent shortage in the industry. Businesses must implement strategic solutions to attract and retain top talent.

Roles such as Heads of Regulation and Regulatory Analysts are becoming increasingly crucial, leading to a surge in hiring and competitive salary offerings. As the regulatory landscape continues to shift, professionals with the right expertise can secure lucrative career opportunities within financial services.

Find your next RegTech job with Marks Sattin

At Marks Sattin, we specialise in connecting top-tier candidates with the best roles in the industry. With over 30 years of experience in contract, interim, and permanent placements, our tailored services help professionals find their ideal opportunities in the RegTech sector.

If you're looking for your next job in RegTech, explore our compliance jobs or browse our latest technology job openings today.