China RegTech Market Overview, 2030

The RegTech market in China has evolved rapidly over the past decade, driven by the country’s expanding financial sector, stringent regulatory frameworks, and the rapid rise of fintech and digital payment platforms. The market’s early development was influenced by the aftermath of the 2008 global financial crisis and the Chinese government’s focus on financial stability, prompting the People’s Bank of China (PBOC), the China Banking and Insurance Regulatory Commission (CBIRC), and the China Securities Regulatory Commission (CSRC) to strengthen oversight of banks, insurance companies, and capital markets. Early adoption of RegTech solutions was concentrated among large banks and state-owned financial institutions, which deployed systems for anti-money laundering (AML) monitoring, Know Your Customer (KYC) verification, fraud detection, and risk management to meet rising regulatory demands and reduce operational risks. Between 2015 and 2020, the rapid growth of China’s fintech ecosystem, particularly with mobile payments, digital banking, and e-commerce platforms, accelerated RegTech adoption among fintech firms and smaller banks seeking scalable and automated compliance solutions. Regulatory developments, such as the implementation of the Cybersecurity Law (2017) and data protection requirements under the Personal Information Protection Law (PIPL), further increased demand for solutions that ensure secure data handling, privacy compliance, and real-time monitoring. More recently, China’s emphasis on anti-corruption measures, risk-based supervision, and regulatory sandboxes for fintech innovation has created opportunities for AI- and machine learning-based RegTech platforms that provide predictive compliance analytics, automated reporting, and transaction surveillance. Today, China’s RegTech market is characterized by a highly dynamic landscape in which traditional banks, fintech firms, and regulatory authorities collaborate to leverage cloud computing, big data analytics, AI, and blockchain technologies to enhance compliance efficiency, reduce costs, and ensure regulatory adherence in an increasingly complex financial ecosystem.

According to the research report “China RegTech Market Overview, 2030,”published by Bonafide Research, the China RegTech market is anticipated to grow at more than 23.64% CAGR from 2025 to 2030.China’s RegTech market is strongly shaped by a comprehensive regulatory and policy framework aimed at maintaining financial stability, protecting consumer data, and promoting transparency, which has driven the adoption of technology-driven compliance solutions. The People’s Bank of China (PBOC) serves as the central authority overseeing monetary policy, banking compliance, and financial risk management, while the China Banking and Insurance Regulatory Commission (CBIRC) regulates banks and insurance firms, enforcing capital adequacy, risk management, and reporting standards. The China Securities Regulatory Commission (CSRC) supervises capital markets, investor protection, and compliance with securities laws. Anti-money laundering (AML) compliance is governed by the Anti-Money Laundering Law (2006, amended 2016), requiring financial institutions to implement robust Know Your Customer (KYC) procedures, transaction monitoring, and reporting of suspicious activities. Data protection and cybersecurity regulations, particularly the Cybersecurity Law (2017) and the Personal Information Protection Law (PIPL, 2021), mandate secure handling, storage, and processing of sensitive personal and financial data, making data governance a key driver for RegTech adoption. Open banking and digital finance initiatives, including the development of regulatory sandboxes by the PBOC and CBIRC, encourage fintech innovation while maintaining controlled regulatory oversight. Additionally, environmental, social, and governance (ESG) disclosure requirements are emerging, creating demand for RegTech solutions that enable sustainable finance reporting and risk management. Collectively, these regulations and policies establish a strong compliance environment, prompting banks, fintech companies, and other regulated entities to adopt advanced RegTech solutions such as AI-driven transaction monitoring, automated reporting platforms, blockchain for secure data handling, and predictive analytics to meet evolving regulatory obligations efficiently.

In China, the RegTech market by end user demonstrates diverse adoption across both financial and non-financial sectors, with banks representing the largest segment due to stringent oversight from the People’s Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC), as well as compliance obligations under the Anti-Money Laundering Law and Basel III standards. Major banks deploy RegTech solutions for Know Your Customer (KYC), anti-money laundering (AML) monitoring, fraud detection, risk management, and automated regulatory reporting to streamline compliance operations and reduce operational risks. Insurance companies are increasingly adopting RegTech to improve claims monitoring, fraud prevention, solvency reporting, and customer identity verification, ensuring alignment with both national regulations and international standards. FinTech firms, particularly in Beijing, Shanghai, and Shenzhen, are rapidly embracing RegTech solutions for digital onboarding, transaction monitoring, AML compliance, and real-time regulatory reporting to meet licensing requirements and regulatory scrutiny efficiently. The IT and telecom sector uses RegTech platforms to comply with data protection, cybersecurity, and privacy laws under the Cybersecurity Law (2017) and Personal Information Protection Law (PIPL, 2021). Public sector organizations implement RegTech tools for risk analytics, fraud detection, and transparency in financial management. Energy and utilities companies increasingly rely on RegTech for ESG reporting, regulatory compliance, and risk monitoring. Other sectors, such as healthcare, retail, and logistics, are gradually integrating RegTech solutions to enhance data governance, fraud prevention, and compliance management, reflecting the expanding applicability of RegTech beyond traditional financial institutions in China.

In China, the RegTech market by component is divided into solutions and services, with solutions representing the largest share due to strong demand from banks, insurance companies, and fintech firms for automated compliance tools. Solutions include applications for Know Your Customer (KYC), anti-money laundering (AML) monitoring, fraud detection, transaction surveillance, risk and compliance management, regulatory reporting, and data privacy compliance under the Cybersecurity Law (2017) and the Personal Information Protection Law (PIPL, 2021). Large banks and multinational insurers deploy these solutions to automate complex compliance processes, reduce operational costs, and ensure accurate reporting under oversight from the People’s Bank of China (PBOC), the China Banking and Insurance Regulatory Commission (CBIRC), and the China Securities Regulatory Commission (CSRC). FinTech start-ups and mid-sized institutions increasingly adopt cloud-based solutions for scalability, real-time monitoring, and cost efficiency, particularly for digital onboarding, identity verification, and regulatory intelligence. The services segment complements solutions by providing consulting, system integration, implementation support, training, and ongoing maintenance. Consulting services help organizations interpret complex regulatory requirements, design compliance strategies, and align internal processes with national and international frameworks. Integration and managed services ensure seamless connectivity with legacy IT systems and allow smaller banks and fintech firms to outsource compliance operations, reducing internal resource burdens. Collectively, solutions drive automation and innovation in regulatory compliance, while services ensure effective deployment, customization, and adaptation to China’s evolving regulatory landscape, supporting both large enterprises and emerging financial players.

In China, the RegTech market by deployment model is segmented into on-premises and cloud-based solutions, reflecting the differing needs of large financial institutions, mid-sized banks, and fintech companies. On-premises deployments are primarily adopted by major banks, insurance companies, and government agencies that require maximum control over sensitive financial and personal data, full integration with legacy IT systems, and strict compliance with regulations enforced by the People’s Bank of China (PBOC), the China Banking and Insurance Regulatory Commission (CBIRC), and the China Securities Regulatory Commission (CSRC). On-premises solutions are commonly used for critical applications such as Know Your Customer (KYC), anti-money laundering (AML) monitoring, fraud detection, transaction surveillance, and regulatory reporting, providing high security and operational control but requiring significant upfront investment and longer deployment cycles. Cloud-based RegTech solutions are increasingly adopted by fintech start-ups, smaller banks, and mid-sized insurers due to advantages such as scalability, faster deployment, cost efficiency, and real-time compliance updates. Cloud platforms are particularly suitable for digital onboarding, identity verification, AML monitoring, and compliance with data protection laws including the Cybersecurity Law (2017) and the Personal Information Protection Law (PIPL, 2021). As regulatory guidance in China increasingly supports secure cloud adoption, cloud-based RegTech solutions are emerging as the fastest-growing deployment model, driven by operational flexibility, cost-effectiveness, and the need for agile, automated compliance management across financial and non-financial sectors.

In China, the RegTech market by enterprise size shows a clear distinction between large enterprises and small & medium enterprises (SMEs), shaped by regulatory obligations, operational capacity, and resource availability. Large enterprises, including major banks, multinational insurance companies, and leading financial institutions, dominate the market due to strict oversight from the People’s Bank of China (PBOC), the China Banking and Insurance Regulatory Commission (CBIRC), and the China Securities Regulatory Commission (CSRC), as well as compliance with the Anti-Money Laundering Law, Basel III standards, and data privacy regulations under the Cybersecurity Law (2017) and the Personal Information Protection Law (PIPL, 2021). These organizations invest heavily in comprehensive RegTech solutions for Know Your Customer (KYC), anti-money laundering (AML) monitoring, fraud detection, transaction surveillance, risk management, and automated regulatory reporting, often integrating on-premises infrastructure with AI, machine learning, and analytics-driven platforms to enable predictive compliance and operational efficiency. Large enterprises also have the financial and technical capacity to maintain in-house compliance teams and integrate solutions with legacy IT systems. Conversely, SMEs—including regional banks, fintech start-ups, and smaller insurance firms—are increasingly adopting cloud-based RegTech platforms due to affordability, scalability, and faster deployment. RegTech-as-a-Service and managed service models enable SMEs to automate compliance processes, meet AML and data protection requirements, and reduce dependency on limited internal resources. While large enterprises continue to account for the majority of market revenue, SMEs represent the fastest-growing segment, driven by China’s expanding fintech ecosystem, digital transformation initiatives, and rising demand for cost-effective, agile compliance solutions across both financial and non-financial sectors.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• RegTech Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By End User
• Banks
• Insurance Companies
• FinTech Firms
• IT and Telecom
• Public Sector
• Energy and Utilities
• Others

By Component
• Solution
• Services

By Deployment Model
• On-premises
• Cloud

By Enterprise Size
• Large Enterprises
• Small & Medium Enterprises (SMEs) Show more