The trends that shaped RegTech in 2024 & Global RegTech investment slumps 36%

AI, automation, regulation: The trends that shaped RegTech in 2024

As we begin 2025, we can look back at 2024 as another transformative year for the RegTech sector. With artificial intelligence and automation continuing to play a growing role and regulatory challenges leading firms to demand solutions that meet their needs, RegTech is offering the answer.

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Research highlight

US firms reign the RegTech market, clinching half of the Top 10 Investments of 2024

Key Global RegTech investment stats for 2024:

• Global RegTech investments dropped by 36% YoY
• US firms reign the RegTech market, securing half of the top 10 investments
• MirrorWeb, a leading UK provider of digital communications archiving and regulatory compliance software secured $63m in a funding round making it one of the biggest RegTech deals in 2024

Global RegTech investments dropped by 36% YoY

In 2024, the global RegTech sector recorded 443 deals, reflecting a 48% decline from the 843 deals completed in 2020 and a 44% drop from the 795 deals recorded in 2023.

Total funding in 2024 amounted to $6.5bn, representing a slight 4% decrease from the $6.7bn raised in 2020 and a substantial 36% decline compared to the $10.1bn raised in 2023.?

This downturn in deal activity and funding underscores a broader contraction in the RegTech market, driven by cautious investor sentiment and a shifting focus toward high-priority projects amidst economic headwinds.?

US firms reign the RegTech market, securing half of the top 10 investments

The geographical composition of the top 10 deals in 2024 highlights notable shifts compared to 2023.?

The United States maintained its leadership with five top deals but saw a reduction from seven in 2023, reflecting its slightly diminished dominance in the sector.

The United Kingdom, however, increased its presence significantly, securing four top deals in 2024, up from just one in 2023, signalling a strengthening position as a RegTech hub.?

Meanwhile, Canada made its way into the top 10 in 2024 with one deal, replacing Lithuania and the Netherlands, which were notable players in 2023.?

These changes indicate a consolidation of influence in traditional markets like the U.S. and U.K., with emerging signs of diversification through players like Canada.

MirrorWeb, a leading UK provider of digital communications archiving and regulatory compliance software secured $63m in a funding round making it one of the biggest RegTech deals in 2024

Known for its innovative Insight platform, MirrorWeb supports financial institutions in meeting complex regulatory requirements by enabling comprehensive archiving across websites, mobile, email, instant messaging, and social media channels.?

This latest investment will drive the company's product development and customer support capabilities, ensuring continued regulatory readiness for its clients.?

With Mainsail’s support, MirrorWeb is positioned to enhance its value for financial services firms needing dependable, real-time compliance solutions, solidifying its impact on the RegTech sector in the UK. ?

RegTech news

• Record-breaking fines and fierce industry innovation: RegTech in 2024 - As the RegTech sector continues to embed itself within the structure of the financial sector, 2024 proved to be yet another red-letter year for RegTech, as greater numbers of companies across the wider financial market dipped their toes into the RegTech industry. Read the full story here.
• How the partnership for global inclusivity shapes ethical AI in RegTech - In 2024, the AI landscape experienced a defining shift with the initiation of the Partnership for Global Inclusivity on AI (PGIAI), announced by U.S. Secretary of State Antony Blinken. Read the full story here.
• Eight critical red flags in beneficial ownership for effective AML compliance - In the intricate landscape of anti-money laundering (AML) compliance, the concept of beneficial ownership is pivotal. Read the full story here.

Regulation news

• FCA proposes flexible investment information rules to boost market confidence - The FCA has announced a significant overhaul of the regulatory framework governing investment information, aimed at increasing investor confidence and engagement by simplifying the information provided. Read the full story here.
• Philippine SEC rolls out green equity guidelines to boost sustainable investments - The Philippine SEC is introducing new guidelines aimed at fostering sustainable investment in the country. Read the full story here.
• BIS CPMI advances cross-border payments with ISO 20022 harmonisation - The BIS Committee on Payments and Market Infrastructures (CPMI) has recently announced strides in enhancing cross-border payment systems. Read the full story here.

RegTech Deal news

• Tietoevry Banking advances European payment security with new registration - Tietoevry Banking has achieved a significant milestone by registering with the European Payments Council as a provider of Routing and Verification Mechanisms (RVM) for Verification of Payee (VoP) solutions. Read the full story here.
• ThreatMark secures $23m to bolster online fraud prevention - ThreatMark, a cybersecurity company focused on fraud prevention for financial institutions, has secured $23m in a funding round led by Octopus Ventures, Riverside Acceleration Capital, and Springtide Ventures. Read the full story here.
• Dataships raises $7m in Series A for enhanced eCommerce compliance solutions - Dataships, an Irish RegTech specializing in automating GDPR and CCPA compliance for eCommerce platforms, has closed a $7m Series A funding round. Read the full story here.

CyberTech news

• Cybersecurity consultancy 360 Advanced secures strategic growth investment from Bregal Sagemount - 360 Advanced, a leading consulting firm specialising in cybersecurity and compliance frameworks, has received a minority growth investment from Bregal Sagemount’s Basecamp fund. Read the full story here.
• WatchGuard acquires ActZero to boost AI-driven MDR services - WatchGuard Technologies has announced its acquisition of ActZero, a distinguished provider of Managed Detection and Response (MDR) services.?Read the full story here.
• Barclays report reveals the harsh realities of online scams in 2024 - In a report released by Barclays, 18% of consumers acknowledged falling victim to scams in the past year, with a staggering 93% of these incidents occurring online. Read the full story here.

Other RegTech news

• Navigating the AML landscape: Essential steps for RIAs and ERAs in 2025 - For RIAs and ERAs, the dawn of a new year presents not just opportunities but significant regulatory responsibilities. With the introduction of FinCEN’s AML Rule, 2025 is a pivotal year to fortify compliance frameworks and ensure readiness for the forthcoming regulations. Read the full story here.
• The crucial role of anti-money laundering in combating human trafficking - Money laundering represents a severe threat not only to the integrity of global financial systems but also contributes to grave social injustices, including human trafficking. Read the full story here.
• Essential strategies for meeting CSRD & ESRS reporting requirements in 2025 - As 2025 approaches, businesses across the EU and beyond must brace for significant changes under the CSRD. Read the full story here.