The digital payments arena is undergoing rapid change, owing to a combination of factors. Transactions are growing rapidly year-on-year as convenience improves, and regulatory changes help to drive adoption. Meanwhile, the scope of different payment types is increasing.
“From the $300 million spent in 2018 on alternative data to pre-trade transparency to indexing to real-time market data, 2019 will see a hyper-focus on gathering more of the right data, storing it in new ways, analyzing it via machine learning and AI, and acting upon it more systematically than ever before.”
According to the latest worldwide market study by Juniper Research, annual online payment fraud losses from eCommerce, airline ticketing, money transfer and banking services will reach $48 billion by 2023 — that’s up from the $22 billion in losses projected for 2018.
“Variations on the digital challenger bank model championed in Europe are spreading globally with new entrants targeting niche customer pain points. Collectively this year, startups in our market map have raised over $1.7B in venture capital.”
via CB Insights
The appeal of Regtech is that financial institutions can utilize new and disruptive technologies, such as Artificial Intelligence (AI), Big Data analytics, biometrics, blockchain or chatbots to reduce their overall spending on compliance by unlocking more efficient practices.