Financial Institutions Rely on Peers to Navigate RegTech Market

Financial institutions are turning to regulatory technology, or RegTech, as anti-money laundering, sanctions, fraud prevention and reporting obligations grow more complex. The 2026 Global State of RegTech Report examines how senior compliance leaders assess vendors in a crowded market. The findings matter because purchasing decisions increasingly hinge not only on product capability, but also on credibility, integration risk and evidence that a platform can deliver measurable results in regulated environments.

The report surveyed 300 senior compliance decision-makers at financial institutions and found that RegTech companies raised more than $5 billion in 2025. Despite the influx of capital and a broad range of competing products, 53% of respondents said peer recommendations and word of mouth were their main routes to discovering new solutions. The result underscores the importance of institutional references, proven deployments and vendor reputation when compliance teams draw up shortlists.