United Kingdom RegTech Market Overview, 2030

The RegTech market in the United Kingdom has evolved steadily over the past two decades, underpinned by the country’s role as a global financial hub and its tradition of strong regulatory oversight. Following the 2008 global financial crisis, regulators including the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) intensified their focus on risk management, compliance, and consumer protection, driving demand for automated solutions to handle growing regulatory complexity. Early adoption was concentrated in large banks and insurance companies seeking to streamline compliance with the Financial Services and Markets Act 2000, the Money Laundering Regulations 2007 (later replaced by the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017), and reporting standards set by the Bank of England. By the mid-2010s, as the United Kingdom became one of the largest fintech hubs globally, the RegTech sector gained momentum with the rise of AI, machine learning, big data analytics, and blockchain, enabling more sophisticated tools for Know Your Customer (KYC), anti-money laundering (AML), fraud detection, and transaction monitoring. The introduction of the FCA Regulatory Sandbox in 2016 was a major milestone, allowing fintech and RegTech firms to test innovative solutions in a controlled environment, accelerating product development and adoption. Data protection regulations, particularly the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018, further pushed companies to integrate advanced data management and compliance tools. Today, the UK RegTech market is characterized by a mature ecosystem where banks, insurers, fintechs, and even non-financial industries adopt digital compliance technologies, cementing the country’s position as one of the most advanced RegTech markets worldwide.

According to the research report “United Kingdom RegTech Market Overview, 2030,”published by Bonafide Research, the United Kingdom RegTech market is expected to reach a market size of more than USD 1.97 Billion by 2030.The regulatory and policy framework shaping the RegTech market in the United Kingdom is comprehensive, reflecting the country’s commitment to financial stability, transparency, and innovation in compliance management. The Financial Conduct Authority (FCA) plays a central role, overseeing conduct regulation across banks, insurers, fintech firms, and investment companies, while the Prudential Regulation Authority (PRA) part of the Bank of England focuses on prudential supervision of banks, insurers, and major investment firms. Core legislation includes the Financial Services and Markets Act 2000 (FSMA), which governs the regulation of financial services, and the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, which outline strict requirements for Know Your Customer (KYC), anti-money laundering (AML) monitoring, customer due diligence, and suspicious transaction reporting. The UK also enforces the Sanctions and Anti-Money Laundering Act 2018 (SAMLA), aligning national frameworks with international standards set by the Financial Action Task Force (FATF). Data protection is regulated by the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018, mandating secure handling, processing, and storage of personal and financial data, with strict penalties for non-compliance. Additionally, the Payment Services Regulations 2017 and Open Banking standards have encouraged transparency and innovation in financial services while creating new compliance demands. To foster technological advancement, the FCA introduced the Regulatory Sandbox in 2016, enabling fintech and RegTech companies to test innovative solutions under regulatory oversight. Policies on cybersecurity and operational resilience, guided by the National Cyber Security Centre (NCSC) and the Bank of England, further ensure secure adoption of RegTech tools. Collectively, these frameworks create a rigorous yet innovation-friendly regulatory environment, positioning the UK as a global leader in RegTech adoption and governance.

In the United Kingdom, the RegTech market by end user demonstrates strong adoption across both financial and non-financial sectors, with banks being the dominant segment due to stringent regulatory oversight by the Financial Conduct Authority (FCA), Prudential Regulation Authority (PRA), and Bank of England. Banks deploy RegTech solutions to streamline KYC, AML, transaction monitoring, fraud detection, and regulatory reporting, reducing compliance costs while ensuring transparency. Insurance companies are increasingly adopting RegTech tools to meet solvency requirements, manage claims fraud, and comply with GDPR and consumer protection rules, while also improving digital customer onboarding. FinTech firms, a rapidly growing segment in the UK’s financial landscape, leverage RegTech to scale operations efficiently and remain compliant with evolving regulations, especially in digital lending, payments, and wealth management. Beyond finance, IT and telecom providers utilize RegTech for data privacy management, cyber risk assessment, and identity verification, as they handle sensitive customer data under UK data protection laws. The public sector also plays a significant role, with government departments and regulators integrating RegTech to monitor compliance, enhance cybersecurity, and enforce anti-fraud measures in public services and procurement. Meanwhile, energy and utilities companies are deploying RegTech to ensure compliance with environmental, health, and safety regulations, as well as data-driven monitoring for infrastructure resilience. The others category includes healthcare, retail, and manufacturing, where RegTech adoption is emerging in areas like ESG compliance, supply chain due diligence, and consumer data protection. This diverse end-user base reflects the UK’s advanced regulatory ecosystem and broadening scope of compliance requirements.

In the United Kingdom, the RegTech market by component is divided into solutions and services, with solutions representing the core revenue driver as financial institutions and enterprises increasingly adopt advanced technologies to manage complex compliance requirements. Solutions include software platforms and tools designed for compliance automation, risk management, identity verification, fraud detection, and regulatory reporting, which are widely deployed across banks, insurance firms, and FinTech companies to reduce manual processes and improve regulatory accuracy. Cloud-based RegTech solutions are particularly gaining traction due to scalability, cost efficiency, and ease of integration with existing systems, especially as firms adapt to dynamic regulations such as FCA guidelines, GDPR, PSD2, and MiFID II. Meanwhile, the services segment plays a critical role in enabling the effective implementation and customization of these solutions. Services include consulting, system integration, training, and ongoing support, ensuring that organizations can navigate the complexity of the UK’s regulatory landscape while maximizing the value of their RegTech investments. Managed services are expanding as firms outsource compliance monitoring and reporting functions to specialized providers for efficiency. The growing need for tailored advisory services, particularly among SMEs and FinTechs, is also driving demand, as these organizations often lack in-house expertise to interpret evolving regulatory frameworks. Overall, while solutions form the backbone of RegTech adoption, services are becoming increasingly indispensable for ensuring seamless deployment, compliance alignment, and long-term operational resilience in the UK’s highly regulated financial and non-financial sectors.

In the United Kingdom, the RegTech market by deployment model is segmented into on-premises and cloud, with cloud adoption accelerating due to its scalability, cost efficiency, and flexibility. On-premises deployment has traditionally been preferred by large banks, insurance companies, and public sector entities that prioritize full control over sensitive data and seek to maintain compliance with stringent data residency and security requirements. This model ensures higher levels of customization and integration with legacy infrastructure, but it comes with high upfront costs, longer implementation timelines, and limited flexibility in adapting to evolving regulatory changes. In contrast, the cloud deployment model has gained significant traction, especially in recent years, driven by the UK’s strong digital infrastructure, the widespread adoption of open banking, and regulatory encouragement of innovation under frameworks such as the Financial Conduct Authority’s (FCA) Regulatory Sandbox. Cloud-based RegTech solutions enable real-time regulatory reporting, faster updates to reflect compliance changes, and seamless integration with digital financial platforms. They are particularly attractive to SMEs and FinTech firms, which often lack the resources for heavy on-premises infrastructure but require rapid deployment and lower operational costs. Additionally, cloud solutions facilitate advanced technologies like AI, big data analytics, and blockchain, which are increasingly used for fraud detection, identity management, and compliance monitoring. While security and data privacy remain key concerns, growing trust in cloud platforms, combined with stricter compliance requirements such as GDPR and PSD2, has positioned the cloud model as the dominant force in the UK RegTech landscape, reshaping how organizations approach regulatory compliance.

In the United Kingdom, the RegTech market by enterprise size is segmented into Large Enterprises and Small & Medium Enterprises (SMEs), with both groups showing distinct adoption patterns influenced by their scale, compliance requirements, and technological maturity. Large Enterprises, such as multinational banks, insurance giants, and major telecom operators, dominate the adoption of RegTech solutions due to their extensive regulatory exposure and the complexity of managing compliance across multiple jurisdictions. These organizations typically invest heavily in end-to-end RegTech platforms that cover compliance management, regulatory reporting, fraud detection, and identity verification. Large enterprises often prefer hybrid or on-premises models to maintain control over sensitive data while also integrating cloud-based solutions for scalability and AI-driven analytics. On the other hand, SMEs and FinTech firms in the UK represent a fast-growing segment, driven by the need for affordable, agile, and scalable solutions that enable them to remain competitive in a highly regulated financial environment. Many SMEs, especially in the FinTech ecosystem fostered by London’s role as a global financial hub, adopt cloud-based RegTech solutions due to their lower upfront costs, faster deployment, and ability to adapt quickly to evolving regulations such as PSD2, GDPR, and anti-money laundering directives. Additionally, the FCA’s regulatory sandbox initiatives have allowed smaller firms to test and implement innovative compliance solutions without incurring excessive risks. While large enterprises ensure the bulk of revenue in the UK RegTech sector, SMEs are increasingly driving market innovation and contributing to wider adoption, making enterprise size a critical factor in shaping the country’s RegTech growth trajectory.

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