Financial Crime RegTech solutions have the highest level of adoption across the financial services industry, according to a new report on the sector.
RegTech Analyst and Parker & Lawrence Research recently collaborated on a new industry report, ‘The Global State of RegTech 2026’, offering a comprehensive assessment of the global RegTech market to date.
As part of its research, the report offers a look into the market structure and what types of services are seeing the highest level of adoption. As part of this, it aims to bring greater structure to the increasingly fragmented market, through a simplified RegTech taxonomy. It covers 24 subcategories across six major risk and compliance domains.
The six risk and compliance domains are Financial Crime, Market Conduct, Compliance Management, Information & Technology Security, Resilience and ESG. Each of these is then given a RegTech Adoption Index score, which is calculated as the average score of reported adoption and scaled from 0 and 100.
The report found that 95% of the financial institutions surveyed had reported scaled enterprise use of at least one regulatory domain. The number of solutions firms have in use is expected to grow over the coming years, with 62.7% of FIs stating they plan to increase their spending on RegTech solutions during 2026 and 48.3% hoping to implement new vendor solutions.
Financial Crime has the highest Adoption Index score, with a total of 68. This area includes solutions that are designed to detect, prevent and respond to crimes impacting financial institutions. This includes activity such as fraud, money laundering, sanctions evasion and terrorist financing.
There are four subcategories that fall under the Financial Crime domain, which are Sanctions Screening, KYC/KYB, Fraud Prevention & FRAML and Transaction Monitoring. The report also highlights the markets that are leading the adoption of this technology type, with payments firms and investment banks being the greatest adopters of Financial Crime solutions.
Close behind this domain is Information & Technology Security, which boasts an Index score of 61. This area is reserved for RegTech solutions operating in Identity & Access Management, Network & Endpoint Security, Data Protection and Data Privacy markets, its greatest adoption levels come from the payments and asset management sectors,
Market Conduct comes in third, with a score of 54. This domain includes RegTech solutions that are supporting fair, transparent and compliant trading and market activities. This covers the subcategories of Trade Surveillance, eComms Surveillance, Communication & Disclosures, and Trade Reporting. The markets leading its adoption are FinTech and investment banking.
The domain with the lowest adoption is ESG, which has an Index score of 40. The market encompasses solutions facilitating the measurement, management and reporting of environmental social and governance factors for sustainable investing and corporate responsibility. Its subcategories are ESG Ratings, ESG Reporting & Disclosures, ESG Risk Management and Climate Risk Quantification.
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