The most prominent industry in Ireland’s fintech sector has been payments for a long time. However, regulatory technology, or regtech, has quickly been growing and expanding its reach internationally.
Regtech is a bit less known because it does necessarily offer direct services to consumers. Instead, it includes technologies that allow regulated bodies, such as banks and insurance companies, to answer regulatory compliance difficulties more efficiently. Ireland accounts for a significant center of global financial services with many qualified and working in legal, risk, and compliance areas.
Before the Covid-19 pandemic hit the globe, the entirety of the regtech market had been predicted to grow from €5.3 billion in 2020 to about €13.5 billion by 2025. Asia-Pacific’s regtech market would account for the largest growth rate over the time period. The pandemic, however, has accelerated the already fast-growing market. Estimates now predict that the market will be worth about €25.4 billion by 2025.
Though the implementation of regtech is already pretty developed in Europe and the United States, the Asia-Pacific region will prove to be a significant area for regtech companies. It offers an arena of complex financial and regulatory environments.
Over three years ago, Enterprise Ireland had begun an Asia-Pacific regtech initiative. Recently, it has released a report regarding The State of RegTech in APAC. The report supports the idea that there can be a growing number of regtech companies from Ireland along with a congruence of conditions and circumstances in Asia-Pacific.
Presently, regtech adoption is in a somewhat early stage in Asian banking markets with ample opportunity to grow. Though many banks have begun implementing regtech, it is mostly used to combat financial crime. It is still only utilized at low percentages to aid more menial tasks in risk management and regulatory compliance.
Despite current standings, regtech adoption is expected to grow throughout the year. Areas of focus will most likely be in domains of conduct, regulatory and tax reporting, customer protection, and regulatory compliance necessities.
Important markets including Singapore, Australia, Japan, and Hong Kong have all been encouraging the implementation of regtech. It is a perfect time for Irish regtechs to assemble at least a single market in the Asian-Pacific into their growth strategy because there will be increasing demand.
Due to Ireland’s prominence in fintech, a focus on the regtech sector can boost it even further. Ireland already has a booming regtech cluster and is now in the perfect position to support a global regtech boom, especially in the Asia-Pacific region.
Harvey, Mo. “Ireland Now Has a World Class Regulatory Technology Sector.” Independent.ie, 25 July 2021, https://www.independent.ie/business/technology/ireland-now-has-a-world-class-regulatory-technology-sector-40684822.html.