London has long been a cornerstone of global finance and a leading fintech hub. It was only a couple of months ago that the Z/Yen Global Financial Centres Index showed the UK capital was closing the gap on New York.
But recent developments make clear that the race is far from over. Paris has just overtaken London as Europe’s top tech hub according to new research from Dealroom, powered by surging AI innovation and a new generation of repeat founders. It’s a wake-up call for the UK.
To maintain its edge, the UK must focus on areas where it has a real strategic advantage, and RegTech is a prime example.
Regulatory technology is no longer a niche. It underpins the integrity of the global financial system. With compliance costs rising and the threat of fines and the repercussions of reputational damage, firms urgently need smarter solutions.
KPMG’s latest analysis of global fintech funding confirms this trend, highlighting that RegTech will continue to gain attention from investors, particularly in the EMEA region, given the increasing complexities associated with ensuring regulatory compliance.
According to industry estimates, the global RegTech market could be worth up to $85bn (£63bn) by 2032.
The UK is well-positioned to lead in this field. We have one of the most sophisticated regulatory regimes in the world, a world-class financial services sector, and a unique alignment between government, regulators, and industry.
Home-grown RegTech companies are already working on next-generation solutions to automate regulatory compliance using open standards and cutting-edge technology.
However, more government support for the sector could help scale and enhance these innovations to compete globally.
That includes smarter policy incentives, targeted funding, and encouraging collaboration between regulators, industry leaders, and academics.
Other centres like Singapore and New York are already moving in this direction. The UK must do the same or risk losing momentum.
Investing in RegTech is about more than gaining a competitive edge. It’s also about high-quality job creation, reducing systemic risk, and equipping our financial services industry with the tools to thrive in a rapidly changing global environment and increased regulatory scrutiny.
If the UK is serious about securing its future as a global financial leader, RegTech cannot be an afterthought, it must be a priority.
Leo Labeis is the founder and CEO of REGnosys
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