UK fintech’s industry body Innovate Finance has launched RegTech UK to engage with firms on policies, growth, competitiveness and compliance within the industry.
RegTech UK’s main responsibilities will be to collaborate with key stakeholders across regulators, policymakers, industry, and the government to improve the regulatory environment for RegTech.
This will involve highlighting ways to increase adoption of the technology in financial services and beyond. Also, the trade association will help firms scale by showcasing their business and services to investors and potential clients.
Janine Hirt, CEO of Innovate Finance, said: “The global RegTech market is projected to grow to $85.9bn by 2032, and is a key opportunity for UK economic growth.
“The UK has the opportunity to cement its position as a global leader in RegTech, in much the same way it has cemented its position as a global leader in fintech, but to do so we must improve the regulatory environment for these firms and better support them as they scale.”
Operating under the Innovate Finance umbrella, RegTech UK will seek to solve growing concerns in the sector, such as consumer protection, tech advancements and increasing costs of compliance.
As noted by Hirt, RegTech presents major opportunities for investment and thus a way to revive the UK economy. Prime Minister Keir Starmer has previously named fintech as a sector that can help relieve a £22bn black hole of debt in the past.
Given its importance to the UK economy, these concerns present a huge problem and need to be addressed sooner rather than later. Innovate Finance has worked with the government in the past, pushing it to include the sector as a core component of its Financial Services Competitiveness and Growth Strategy.
RegTech has become even more important, with the emergence of AI. Countries around the world have recently come together to discuss AI regulations, though the US and the UK snubbed an international agreement on AI promising to ensure the technology is “open, inclusive and transparent” earlier this month.
“Under the Innovate Finance umbrella, RegTech UK will provide dedicated support for RegTech firms to help drive adoption and awareness, increase partnerships and investment, and establish a clear regulatory environment,” Hirt concluded.
