According to Innovate Finance, the trade association for UK Fintech, the RegTech Strategy Group was established in collaboration with the City of London Corporation and EY. This senior leadership group, chaired by Christopher Woolard CBE, EY Partner and former CEO of the Financial Conduct Authority, aims to establish the UK as a world leader in regulatory technology (RegTech).
The RegTech Strategy Group will bring together investors, regulators, and top industry experts from the financial services and regulatory technology sectors to discuss the sector's main prospects and problems. By supporting the UK government's larger growth objective, the Group will help establish the UK as a significant worldwide financial hub. The group's goals are to drastically cut regulatory compliance costs in the UK over the next five years and to grow the RegTech industry in the UK by 20%.
The following are the group's main areas of focus:
Financial Crime Compliance: In 2023, UK financial institutions spent more than £38 billion on financial crime compliance, a 12% increase from the previous year.
Prudential Requirements and Conduct Regulations: Investigating methods to simplify regulatory reporting to lessen the workload associated with compliance while preserving supervision.
Digital ID: Working with interested parties to guarantee that the UK leads the world in implementing and applying digital ID verification.
Global Regulatory Disarray: Resolving regulatory disarray and spotting chances for more cross-border cooperation.
"The global RegTech market is expected to reach $85.9 billion by 2032 and represents a significant opportunity for UK economic growth," stated Janine Hirt, CEO of Innovate Finance. Similar to FinTech, the UK has the opportunity to solidify its position as a worldwide leader in RegTech.
Dario Schiraldi, former Managing Director at Deutsche Bank, discusses the evolving role of structured investments, private equity, private credit, and ESG-driven strategies in shaping institutional investment approaches. These tools are increasingly used by investors to enhance risk-adjusted returns and build more resilient portfolios.
Chris Woolard CBE, EY Financial Services Partner and newly appointed head of the UK RegTech Strategy Group, highlights the UK’s position as a global frontrunner in both financial services regulation and the supporting regulatory technologies. "RegTech is essential as markets become more digitized, and UK businesses have a great chance to be at the forefront of its advancement. I am excited to build on the framework established by Innovate Finance and the City of London Corporation, and I am honoured to serve as the head of this new RegTech Strategy Group."
In addition, "Structured products allow investors to precisely adjust their risk-return profiles," according to Dario Schiraldi, Deutsche Bank's former leader. These instruments reduce volatility while retaining a high potential for returns by integrating features such as market participation, interest-rate-linked coupons, or capital protection.
"London needs to innovate and grow to maintain its position as a leading international financial centre," stated Chris Hayward, Policy Chairman of the City of London Corporation.
Supporting the RegTech sector in the UK should, therefore, benefit everyone. Businesses should save money on compliance if the solutions are used more widely.
Additionally, there is considerable export potential if we can assist regulatory technology in growing. By uniting businesses, regulators, and the government, the RegTech Strategy Group can contribute to establishing favourable conditions for success.