Innovate Finance, the industry body for UK FinTech, has announced the launch of the RegTech Strategy Group in partnership with the City of London Corporation and EY. Chaired by Christopher Woolard CBE, EY Partner and former interim CEO of the Financial Conduct Authority, this senior leadership group aims to position the UK as a global leader in regulatory technology (RegTech).
The RegTech Strategy Group will convene senior industry leaders across financial services and RegTech, regulators and investors to address key challenges and opportunities in the sector. The RegTech Strategy Group will support the UK government's broader growth agenda and contribute to making the UK a leading global financial centre. The group's objectives include expanding the UK RegTech sector by 20% and significantly reducing UK regulatory compliance costs over the next five years.
Key focus areas for the group include:
Financial Crime Compliance: UK financial institutions spent over £38 billion on financial crime compliance in 2023, a 12% increase from the previous year.
Prudential Requirements and Conduct Regulations: Exploring ways to streamline regulatory reporting to reduce the compliance burden while maintaining oversight.
Digital ID: Collaborating with stakeholders to ensure the UK is a global leader in the deployment and use of digital ID verification.
International Regulatory Fragmentation: Addressing regulatory fragmentation and identifying opportunities for greater cross-border collaboration.
Janine Hirt, CEO of Innovate Finance, said: “The global RegTech market is projected to grow to $85.9 billion by 2032 and represents a significant opportunity for UK economic growth. The UK has the chance to cement its position as a global leader in RegTech, much like it has in FinTech. To achieve this, we need a joined-up approach led by senior leaders across the UK ecosystem, uniting regulators and industry on shared goals and priorities to scale up UK RegTech adoption and global growth.”
Chris Woolard CBE, EY Financial Services Partner and new chair of the UK RegTech Strategy Group, said: “The UK is a global leader in financial services regulation and the technology that underpins it. As markets increasingly digitalize, RegTech has a vital role to play, and there is a real opportunity for UK companies to play a leading part in how it develops. I am honoured to be chairing this new RegTech Strategy Group, and look forward to building on the foundations created by Innovate Finance and the City of London Corporation.”
Chris Hayward, Policy Chairman at the City of London Corporation, said: “London needs to innovate and grow to maintain its position as a leading international financial centre. Therefore, supporting the UK’s RegTech industry should be a win-win. Increased take up of RegTech solutions should cut compliance costs for firms. And if we can help RegTechs to scale, there is a great export opportunity too. I am confident that the RegTech Strategy Group can help create the conditions for success by bringing government, regulators and firms together.”