Key views of Average RegTech spend per employee by subsector:
- The Global State of RegTech report built its spend estimates bottom-up from 300 senior decision-makers across North America, Middle East, APAC and Europe and six regulatory domains
- Asset Management leads RegTech spend per employee at $5,863, with all six subsectors falling within a narrow $850 range
- The data points to baseline normalisation across sectors, with scale and deployment maturity the key drivers of meaningful spend differentiation
The Global State of RegTech report built its spend estimates bottom-up from 300 senior decision-makers across North America, Middle East, APAC and Europe and six regulatory domains
The Global State of RegTech was produced by RegTech Analyst and Parker & Lawrence Research.
It combines primary survey data with detailed market modelling to map RegTech spend across financial services.
The methodology draws on responses from 300 senior risk and compliance decision-makers at financial institutions, population modelling across 6 countries, and a review of 63 published market estimates.
The spend figures shown here reflect a bottom-up estimate built from actual buyer-reported data, covering both third-party vendor solutions and internally built systems across six regulatory domains.
This chart shows average RegTech spend per employee, broken down by subsector.
Asset Management leads RegTech spend per employee at $5,863, with all six subsectors falling within a narrow $850 range
The figures reveal a remarkably tight range of spending across the subsectors covered.
Asset Management leads at $5,863 per employee, followed by Retail Banking at $5,613 and Payments at $5,220.
Investment Banking sits just below at $5,203, with FinTech and Crypto at $5,096.
Insurance records the lowest average spend per employee at $5,032, though the gap between the highest and lowest figures amounts to less than $850.
The data points to baseline normalisation across sectors, with scale and deployment maturity the key drivers of meaningful spend differentiation
The consistency of spend across subsectors is notable.
Despite significant differences in the nature of regulatory obligations, firm size profiles and operational complexity, average per-employee investment in RegTech converges around a remarkably narrow band.
That said, the aggregate picture masks considerable variation beneath the surface.
The research shows that scale is the strongest individual driver of spend, with average reported investment rising from $1.8m at firms with 50 to 249 employees to $42.5m at organisations employing more than 20,000.
Maturity matters too.
Firms with advanced RegTech adoption across four or more regulatory domains spend an average of $9.8m, compared with $6.8m among those covering two or fewer.
The per-employee figures suggest a sector that has reached a degree of baseline normalisation.
The real differentiation lies in how deeply institutions are deploying what they spend.
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