Positioning the UK as a Global Leader in RegTech:
Launch of the RegTech Strategy Group

Janine Hirt, CEO of Innovate Finance and Chris Hayward, Policy Chairman of the City of London Corporation on why now is the right moment to boost the UK’s regulatory technology (RegTech) credentials and support this fast growing sector.

On 29 April 2025, at the Innovate Finance Global Summit (IFGS), Innovate Finance announced the launch of a new RegTech Strategy Group, in partnership with the City of London Corporation and EY. This marks a bold step in accelerating the UK’s leadership in regulatory technology (RegTech) and ensuring the country continues to lead as a forward-thinking financial centre in a rapidly evolving global environment.

Chaired by Chris Woolard, former FCA board member and a key voice in the future of regulation, the RegTech Strategy Group will bring together senior stakeholders from across the RegTech ecosystem—including technology providers, financial institutions, regulators, and government officials. Its mission: to unlock the full potential of RegTech in driving innovation, reducing compliance burdens, and enhancing the competitiveness of the UK’s financial services sector.

London needs to innovate and grow to maintain its position as a leading international financial centre. Therefore, supporting the UK’s RegTech industry should be a win-win. 

Increased take up of RegTech solutions should cut compliance costs for firms. And if we can help RegTechs to scale, there is a great export opportunity too.

I am confident that the RegTech Strategy Group can help create the conditions for success by bringing government, regulators and firms together.

Chris Hayward, Policy Chairman, City of London Corporation

Why RegTech? Why Now?

The UK government has identified financial services as a cornerstone of its growth agenda, with a renewed focus on global competitiveness, innovation, and sustainability. However, this ambition comes at a time when the industry is facing growing regulatory complexity, rising compliance costs, increasing pressure to combat financial crime, and fragmented oversight across borders.

In 2023 alone, UK financial institutions spent over £38 billion on financial crime compliance—up 12% from the year before and 32% since 2021. This reflects a broader global trend: financial institutions are under increasing pressure to demonstrate accountability, transparency, and risk resilience, often while navigating a patchwork of evolving regulations.

At the same time, RegTech - technology that helps firms meet regulatory requirements more effectively and efficiently - is growing rapidly. From AI-driven monitoring tools to automated reporting systems and digital ID solutions, RegTech is no longer a niche vertical. It is a strategic asset.

The City of London Corporation, a longstanding advocate for the UK’s leadership in emerging technologies, has recognised the opportunity to make RegTech a key UK export sector and a driver of both domestic growth and global influence.

The UK has long been a pioneer in financial innovation. As we look to the future, RegTech represents a major opportunity to boost efficiency, strengthen trust, and enhance our global competitiveness. This new Strategy Group will be instrumental in turning that potential into progress.

With its strong track record in regulation, financial services, and emerging tech, the UK is uniquely positioned to lead the next wave of RegTech innovation. The RegTech Strategy Group is the next chapter in that journey.

Janine Hirt, CEO, Innovate Finance

Objectives of the RegTech Strategy Group

The new RegTech Strategy Group aims to:

• Expand the UK RegTech sector by 20% over the next five years.
• Significantly reduce compliance costs for financial institutions.
• Position RegTech as a key UK export industry.
• Contribute directly to the UK government’s economic growth and competitiveness goals.

To deliver this, the Group will focus on four core themes:

1. Financial Crime Compliance – Identifying scalable, innovative solutions to combat fraud, money laundering, and other financial crimes more efficiently.
2. Prudential and Conduct Regulation – Supporting the PRA and FCA in streamlining regulatory reporting and enhancing compliance monitoring.
3. Digital Identity – Driving forward Digital ID initiatives to improve customer onboarding, verification and security.
4. International Regulatory Fragmentation – Exploring ways to harmonise global regulatory requirements and encourage cross-border collaboration.
    

Building a Strong RegTech Ecosystem

The launch of the RegTech Strategy Group builds on the momentum of RegTech UK, a cross-sector initiative developed by Innovate Finance with support from the City of London Corporation and EY. RegTech UK acts as the industry voice for regulatory technology in the UK, championing innovative firms and helping to scale solutions that benefit regulators, businesses, and consumers alike.

By creating space for collaboration between regulators, government, and industry, the Strategy Group will ensure the UK RegTech ecosystem is aligned with national priorities and global trends. It will also help unlock greater investment in the sector, create new jobs, and support the UK’s role as a hub for safe and responsible innovation in financial services.

Chris Hayward,  Policy Chairman of the City of London Corporation	Janine Hirt CEO of Innovate Finance