RegTech: An opportunity to boost Australia and UK trade relations?
Recent research shows that the RegTech (regulatory technology) sector is a huge opportunity to strengthen trade ties between the UK and Australia. Commissioned by the New South Wales Government and the Australian Trade and Investment Commission, new research by RegTech Associates highlights the advantages of the UK and Ireland as a market for regulatory technology firms with solutions that help regulated firms meet their obligations.
Stuart Ayres, the Minister for Jobs, Investment, Tourism and Western Sydney said, “As this report outlines, the UK and Australia share similar regulatory environments, making London and Sydney RegTechs well suited to expand in each other’s markets.”
As one of the biggest financial centres in the world, London is an international hub for RegTech firms. RegTech Associates data shows that in the UK and Ireland alone, there are 288 homegrown technology products solving regulatory problems from fighting financial crime to regulatory reporting.
Crucially, the UK and Ireland boast governments that are supportive of technological innovation. Financial regulators in the UK such as the Financial Conduct Authority are extremely forward-looking and are actively exploring the use of innovative technologies to address long-standing challenges, such as improving the efficiency of the mandatory reports that financial firms must submit to their regulators.
Some key findings from the report include:
- The majority of RegTech products in both markets fall into the Financial Crime category, with 27.7% in the UK and 30.4% in Australia respectively
- The UK RegTech market is more mature than Australia. 53.6% of Australian products are less than five years old’, however only 35.4% in the UK.
- Australian RegTech products have the second-highest foreign presence in the UK with 9.1% market share, beaten only by the USA
Daren Cade, COO of Arctic Intelligence, a Sydney based RegTech firm that has expanded into the UK said: “The UK presents a unique and sizeable opportunity for RegTech vendors from Australia and vice-versa. Close historical ties, relatively unrestricted movement of people, similar cultures and a single language all make this an easier move for expanding vendors than many others. Additionally, the UK regulatory environment and Financial Conduct Authority are world-renowned as being both ‘tough’ but supportive in equal measure, providing a perfect combination for early-stage technology vendors to expand.”
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