Though starting of as an offshoot of Fintech, RegTech has applications beyond financials services in regulated industries such as education, agriculture, law and more.

The Industry is being driven by increasing regulatory burden and technology innovations.

Australia dominates the Asia Pacific region, and is seventh in the world in terms of RegTech deal activity.

RegTech stands for ‘regulatory technology’ – namely, technology which assists users in complying with regulation in real-time and preventing the emergence of regulatory issues ahead of time.

The RegTech Association, an Australia-based industry association with an increasingly
international membership and an ambition to represent the global RegTech space, emphasises
that RegTech has a broader remit than just financial services. For many, RegTech is seen as a subsection
of the Fintech, but those within the space are keen to point out that RegTech has
applications across a much broader range of industries, in the same way that efficiently complying
with regulation is an imperative in an extremely broad range of industries. The terms are defined
as below:

• RegTech: an enabler and accelerator that solves regulation and compliance challenges –

  industry agnostic and able to be applied to any regulated vertical.

• Fintech: generally, refers to disruptive technology that challenges traditional financial

  services.

• SupTech (Supervisory Technology): Part of the RegTech family, in its monitoring and

  supervisory capacity.

Contents

Introduction to RegTech

• What is RegTech?
• The development of ‘RegTech’
• Mapping the RegTech space
• Challenges in implementation of regtech

Overview of Australian RegTech landscape

Australia is a prominent and fast-growing global market

Australian RegTech is dominated by startups in risk management and monitoring

The RegTech Association is the voice of Australian RegTechs

The Global RegTech landscape

• Drivers of RegTech’s growth
  • Driver 1: Increased regulatory burden
  • Driver 2: Technological capabilities expand
  • The RegTech start-up space has experienced a large influx in investment over the last few years, and the market for RegTech products is expected to continue growing at a rapid pace over the next five years

Appendix A

• Deep dive: RegTech & the Royal Commission

Appendix B

• In profile: Leading Australian RegTech startups

Appendix C

• In profile: leading global RegTechs

List of charts/tables

Figure 1. Global VC, PE and M&A activity in RegTech, 2010 – 1H18

Figure 2. Venture Insights RegTech clusters

Figure 3. Distribution of RegTech firms globally by use case, as of 2018

Figure 4. Global RegTech landscape

Figure 5. Number of RegTech startups, by country

Figure 6. Number of RegTechs by sub-sector, Australia, as of June 2019

Figure 7. Number of RegTechs by regulatory area, Australia, as of June 2019

Figure 8. RegTech Association Members Map, December 2018

Figure 9. RegTech Association Members Map, April 2019

Figure 10. Timeline of increasing regulatory burden for financial institutions

Figure 11. Timeline of increasing regulatory burden for financial institutions (II)

Figure 12. Global RegTech investment by regulation, USD, 2014-18 (as % of total invested)

Figure 13.Overview of key technologies underpinning RegTech

Figure 14. Overview of business benefits of RegTech

Figure 15. Global VC, PE & M&A activity in RegTech, USD (M), 2010-1H18