London leads RegTech growth as global investment soars

Research from FinTech Global shows London is playing a driving role in the development of new regulatory technology (“RegTech”) solutions

Ask any professional who has worked in a sector of the regulated financial markets to recall a time when they heard someone say something appreciative about the Financial Conduct Authority (FCA), the UK’s financial regulator, or its predecessors or its equivalents in other countries, and you probably won’t get too many effusive responses. Many will, perhaps unfairly, be able to recall occasions when the perceived bureaucracy shown by some regulators has provoked anxiety, dismay or rage, or even brought grown adults close to tears.

So it’s a pleasant surprise to find a group of investors and entrepreneurs complimenting the FCA on its supportive stance with regard to the development of RegTech. Let’s give credit where is credit is due: the FCA is one of the key positive factors that is equipping London with huge advantages in the RegTech sector.

“Traditionally the UK has really been the heart and soul
of opportunities for regulated disruptors, because it was
the perfect petri dish for starting a regulated disruptor.
The regulators have been extremely thoughtful, values-based
and not especially litigious. That creates a really friendly
environment”, says Damian Kimmelman, CEO of Duedil
FinTech Global, our intelligence and analytics company, interviewed a range of investors and innovators in the RegTech space after an analysis of investment trends in sector, using data from the FinTech Global database.

At the summary level, the analysis shows that RegTech investments have more than tripled over the last five years, with London establishing itself as the global leader in RegTech deals. Many of London’s deals are early-stage thanks to the catalytic role being played by accelerators. Investors, who currently have a very strong appetite for investing in anti-fraud companies, are positive about the future of RegTech and about London’s continued leadership position.

The full research article is available to subscribers of FinTech Global. Not a subscriber? Contact us today to set up a demo.

© 2017 FinTech Global & Investor Networks Ltd

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