Thirteen companies working in the regulatory technology space have banded together to launch the Regtech Association, a group focused on facilitating collaboration and growth in the regtech sector.
The group’s founding members are Complii, identitii, GRC Solutions, Arctic Intelligence, Verifier, Dynamic GRC, Dysrupt Labs, Meetig8, Simple KYC, Cynopsis Solutions, AML Accelerate, and Red Marker, which was recently acquired by global education company Kaplan.
At the association’s launch, CRC Solutions CEO and chair of the Regtech Association, Julian Fenwick, said the association marks an important step in “getting the conversation started” about building strong performing compliant businesses in an age where regulatory parameters are on the rise.
“The financial sector is evolving, with companies embracing regtech to solve complex regulatory issues. Regtech has the power to revolutionise business through a close to real-time solution that delivers greater efficiencies,” he said.
“By bringing regtechs together to form the association…our vision is to collaborate, advocate, educate, and support the sector and broader business community.”
Elaborating on what “collaboration” for industry would look like, Mark Adams, senior executive leader at the Australian Securities and Investment Commission (ASIC), said regulators and regtech companies will aim to work together in order to navigate regulatory roadblocks.
“Regulators need to nurture relationships with regtechs and better understand what they do. Through ongoing liaison and engagement, we can transfer knowledge and truly make a difference together,” said Adams.
There has been a tightening of regulations across much of the financial sector as of late, most recently with the Australian Prudential Regulation Authority implementing stricter limitations on banks issuing higher-risk loans on residential mortgages.
The repercussions of increased regulations was mentioned as an issue in the latest performance review of Australia’s innovation system from Innovation and Science Australia, which identified regulatory restrictions in a number of specific areas.
Discussing the topic of regulation at the launch event, Fenwick said supporting existing regtech startups that are innovating in the space through collaboration is key to maintaining Australia’s strong financial sector.
“$80 billion is spent on governance risk and compliance globally. The Australian financial sector is the largest contributor to the Australian economy, yet it’s struggling to keep up with stricter regulation and compliance requirements. Regtechs are paving the way for disruptive change,” he said.
“The way forward is through a unified, cross-industry focus on how regtechs can improve business as a whole, and not just in Australia, but globally.”
The emergence of the niche Regtech Association follows the launch of fintech industry body Fintech Australia early last year.
Image: Regtech Association. Source: Supplied.