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, the research by RegTech Associates highlights the advantages of the UK and Ireland as a market for regulatory technology firms.
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Stuart Ayres, the Minister for Jobs, Investment, Tourism and Western Sydney says:
“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 home grown 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.
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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% UK
- Australian RegTech products have the second highest foreign presence in the UK with 9.1% market share, beaten only by USA
- Daren Cade, COO of Arctic Intelligence, a Sydney based RegTech firm that has expanded into the UK says:
“The UK presents a unique and sizable 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.”
New South Wales (NSW) is an equally inviting destination for UK and European based RegTechs who want to expand overseas, as Minister Stuart Ayres explains:
“Sydney is clearly the regtech leader not only in Australia but in the Asia Pacific and with investment from markets like the UK, there is enormous potential for jobs generation and investment. From backing the Sydney Startup Hub to launching Tech Central this year, the NSW Government has been right behind NSW’s booming tech industry.”
With free trade agreement talks between the UK and Australia proceeding well, and in light of Brexit, opportunities to further strengthen trade ties between the two countries are welcomed and the RegTech industry is set to be a big part of that.
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