Regulatory Reporting-as-a-Service Market Size & Share, End user (Banking, Insurance, IT & Telecom, Manufacturing); Technology; Application; Device Type; Service - Global Supply & Demand Analysis, Growth Forecasts, Statistical Report 2025-2037

Regulatory Reporting-as-a-Service Market: Growth Drivers and Challenges

Growth Drivers

• Increasing complexity of ESG and sustainability reporting: The increasing importance of Environmental, Social, and Governance (ESG) factors has led to more complex reporting needs. Thus, top companies are increasingly investing in digital tools to manage ESG data concisely and comply with evolving rules. In June 2024, Workiva acquired Sustain. Life, a carbon accounting software startup, is to bolster its sustainability reporting capabilities. This acquisition enables Workiva to provide more robust tools for companies aiming to improve their ESG disclosures and meet evolving regulatory standards.

• Globalization and cross-border regulatory compliance: The surge in cross-border data regulations demand jurisdiction-specific reporting. As businesses expand globally, they mostly face diverse regulations across different jurisdictions. This difficulty necessitates sophisticated reporting solutions capable of handling multiple regulatory requirements simultaneously. The increasing occurrence of fraudulent activities, such as the £485.2 million in authorized fraud losses reported in the UK in 2022, underscores the need for robust regulatory reporting solutions. These solutions help detect and prevent fraudulent activities by ensuring compliance with regulatory requirements and facilitating transparency and accuracy in financial reporting.

Major Technological Innovations in the Regulatory Reporting-as-a-Service Market

The RRaaS market is rapidly evolving as advanced technologies like AI and GenAI boost accuracy and speed in financial reporting. According to KPMG, 72% of businesses already use AI for this, and it’s expected to reach 99% in three years. In healthcare, AI is set to save $150 billion a year by 2026, with 86% of providers recognizing its major impact. The table below consists of a few technological innovations adopted by top companies or regions.

Impact of AI & ML in the Global Regulatory Reporting-as-a-Service Market

Artificial Intelligence (AI) and Machine Learning (ML) are reshaping the regulatory reporting-as-a-service market by streamlining operations and boosting product innovation. Businesses use these technologies to speed up product development, lower costs, and effectively tailor solutions. These advancements highlight how AI and ML fuel progress and enhance customer value in the RRaaS space. Below are a few examples of this.

Challenges

• Data privacy and security concerns: The inconsistent standards in data privacy laws, such as the EU's GDPR and varying practices in other regions, make compliance difficult. Handling sensitive financial and personal information requires strict compliance with global data protection laws. Thus, ensuring secure data storage, transfer, and processing remains a major challenge, especially when cyber threats increase and regulations change.

• Complex and changing regulatory landscape: Frequent updates to international and local regulations make it difficult for RRaaS providers to stay compliant across jurisdictions. For instance, India's data protection regulations have led to increased infrastructure investments for foreign RRaaS providers. Adapting quickly to new reporting standards like ESG, IFRS, or CSRD requires constant platform updates and expert regulatory knowledge.