Last week, Australian-based company ‘The RegTech Association’ launched in a bid to bring Australia into competition with the UK and US RegTech industries. With the goal of illuminating regulation technology, the association will work towards more optimal performance, compliance and ethics by encouraging investment in and development of RegTech.
Organisations such governments, industry bodies, private and public organisations, corporates, small businesses and start-ups are all set to be targeted by the association in its quest to push RegTech collaboration, education and support.
Over the past year, a significant increase in regulation, data and reporting have resulted in the development of RegTech. The Association’s RegTechs specialise in areas such as KYC and AML compliance and new technologies such as AI compliance monitoring amongst others.
Australian advice company, finder.com.au, spoke with a number of people at the event, including: Matt Symons, co-founder of Red Marker and RegTech Association director; Karen Malzard, head of risk ANZ Wealth; and Danny Gilligan, MD of Reinventure Group - known for investing in fintech innovators.
Marker explained: “What we’re really looking to do is facilitate collaboration between a group of Australian financial services stakeholders who we think can use these new technologies, and this growing crop of innovators who are building regtech businesses. And we hope that by bringing them together we can create a bit of an ecosystem in Australia around regtech. We think of ourselves as a sort of little sister of the fintech association. We see them as very complimentary. We’re aiming to take a subset of the fintech space which is around regulatory technology and risk management technologies and really promote the specific adoption of those. There are a lot of opportunities for us to collaborate and work together and we plan to do that,” Symons said.
Malzard commented: “We are doing some work now with Red Marker, working with Matt Symons on a product called Artemis. Artemis reads natural language, so what we’re having a look at is how we can use it to ensure that our websites and the content that we put on our websites is compliant. It reads natural language and then it compares it to a set of rules and regulations that govern disclosure. Often we, as a big organisation, don’t get to meet the right people, and often it’s about connecting the right people at the right time with the right problems and the right solution. So, I think that’s where the Regtech Association can really help us out. This (Artemis) is not something that we would be able to do if we were just trying to build this in-house. So that's a real advantage that working with one of the regtechs gives us, as well as that kind of nimbleness that we struggle with.”
Gilligan remarked: “I spent a year trying to invest in Red Marker. It’s a space that we’ve followed. We’ve made an investment in a startup called Data Republic and helped launch the Databank platform which is on the fringes of regtech dealing around privacy and information with customers, and facilitating data exchanges in a regulatory and compliant way. More directly, we’re seeing AI (artificial intelligence) and the emergence of AI as a catalyst for big changes in processing of information. The liquidity and mobility of data and the enhancement of computing and intelligence tools, we see as huge catalysts for regtech. It’s an area that we’ll remain very interested in. Australia has a real opportunity to punch above its weight. We have a sophisticated financial services market here and we’ve got well regarded and internationally harmonised regulatory frameworks, so there’s a great opportunity for Australia to become a leader in this space,”