A new report has suggested that the regulatory technology (RegTech) sector is a “huge opportunity” to strengthen trade ties between the UK and Australia.

Commissioned by the New South Wales Government and the Australian Trade and Investment Commission, the research by RegTech Associates revealed that Australian RegTech products have the second highest foreign presence in the UK, with a 9.1 per cent market share, beaten only by those from the US.

The majority of RegTech products in both markets fall into the financial crime category, with 27.7 per cent in the UK and 30.4 per cent in Australia respectively.

The UK RegTech market is more mature than Australia, according to the report, with 53.6 per cent of Australian products being less than five years old, compared to 35.4 per cent in the UK.

RegTech Associates data showed that in the UK and Ireland alone, there are 288 home grown technology products solving regulatory problems, from fighting financial crime to regulatory reporting.

Daren Cade, chief operating officer of Arctic Intelligence, a Sydney based RegTech firm that has expanded into the UK, said: "The UK presents a unique and sizeable opportunity for RegTech vendors from Australia and vice-versa.

“Close historical ties, relatively unrestricted movement of people, similar cultures and a single language all make this an easier move for expanding vendors than many others."

With free trade agreement talks between the UK and Australia proceeding in light of Brexit, the RegTech industry is set to be high on the agenda, according to the report.

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