Covid-19 catalysing the rapid growth of Asia Pacific regtech sector
PR90237
TOKYO, June 23, 2021, /PRNewswire=KYODO JBN/--
- Enterprise Ireland uncovers APAC regtech landscape in new 'The State of
Regtech in APAC' report [
].
- Developmental divide between developed and developing economies cited as key
area of concern for regtech sector in the future.
Regtech in Asia Pacific (APAC) faces the difficult challenge of bridging the
divide between developed and developing economies in the region, according to a
report released today by the Irish government's trade and innovation agency
Enterprise Ireland [https://irishadvantage.com/ ], ranked one of the world's
most active VC investors, including fintech. The divide was particularly
highlighted as the effects of Covid-19 accelerated the demand for the adoption
of regtech solutions in the region.
The report, entitled The State of Regtech in APAC, provides the most
comprehensive, independent analysis available on the adoption of regtech across
10 key APAC markets of Australia, Mainland China, Hong Kong, Indonesia, Japan,
Malaysia, Philippines, Singapore, Thailand, and Vietnam. Enterprise Ireland
commissioned Kapronasia [https://www.kapronasia.com/ ], a leading Asian
financial technology market research and consulting firm, to develop the report
which identifies the latest opportunities and roadblocks facing regtech players
in each of these markets.
Launching the report today, Ireland's Minister of State for Financial Services
Sean Fleming said: "I welcome this comprehensive regtech report from Enterprise
Ireland. It captures the essence of what the Ireland for Finance Strategy is
looking to achieve and the unique value proposition that Ireland offers to
firms in Asia Pacific and across the globe. As Minister with responsibility for
International Financial Services, I want to consolidate and accelerate our
position as one of the world's leading locations for fintech and regtech
development. I look forward to working with the Enterprise Ireland firms and
their partners in Asia as together they deliver value and bring innovative
responses to global compliance challenges."
It has been forecasted that the global regtech market will grow from USD$6.3
billion in 2020 to USD$16.0 billion by 2025, a rate of over 20% per year, with
APAC expected to have the highest growth rate over this period.[1] The
projected growth of the sector is in tandem with the booming fintech scene in
the region, particularly in Southeast Asia which saw an estimated USD$1 billion
worth of investments in 2019.[2]
While APAC is home to some of the world's major financial centres, the
non-homogenous region demonstrates varying levels of market development. In
developed economies such as Hong Kong, Singapore, Sydney and Tokyo, regtech
uptake is driven by a sophisticated financial ecosystem and a complex
regulatory environment. The need for governance and accountability, the
emergence of new market participants and security concerns arising from
disruptive technologies such as artificial intelligence and distributed ledger
technology give regulatory impetus for regtech adoption.
This contrasts with developing economies where regtech uptake is driven by the
sector's promise in helping to create financial inclusion. Uptake is also
reliant on business cases and under-resourced regulators in these markets. With
that said, market interest for regtech solutions in these economies is not as
strong as their developed counterparts. This can be attributed to regulatory
inertia and a marked difference in fundamental behaviours and attitudes towards
regtech.
Developing economies however stand to mature over time – while technology
ecosystems in developed and developing economies will continue to evolve at an
increasingly varying pace, given differing regulatory drivers for regtech
adoption. This is especially evident in the wake of the Covid-19 pandemic that
has further reinforced differing domestic priorities and exacerbated the
economic and technology gap in APAC.
"Covid-19 compelled financial services sector to see the value of
digitalisation as a necessity. It has become a way for organisations to improve
their services in response to changing business and consumer needs. The need
for regtech solutions also expands far beyond the financial services sector
which is why this sector is growing so rapidly. This report is a compendium for
anyone in the regulatory, risk or compliance functions of any company in the
region, as well as for regtech companies which are looking to scale and expand
into Asia Pacific," explained Mo Harvey, Enterprise Ireland's Financial
Services and Fintech Lead (Asia Pacific).
"Asia Pacific continues to be a strategic region, not only to Ireland which is
home to many regtech specialist companies but to the world. At Enterprise
Ireland, we share the commitment to support the development of a vibrant global
regtech segment and contribute to the global regtech ecosystem, and we hope
that this report will provide valuable insights into the complexity of the
sector as we continue to prime many companies for success and long-term growth
in the region," she added.
Brian Tang, co-chair of the Fintech Association of Hong Kong's Regtech
Committee and co-convener of the APAC RegTech Network that brings together the
Regtech committees of the fintech associations of Hong Kong, Singapore, Japan
and Malaysia said, "Regtech is a secret sauce that empowers financial
institutions, fintechs, virtual asset service providers and beyond. All such
institutions, and their regulators and users, across the Asia-Pacific benefit
from innovative, efficient and cost effective regtech solutions to combat
financial crime and drive efficiencies and financial inclusion, regardless of
origin of such technology solutions."
"However, the journey to adoption is certainly not a straightforward one. We
congratulate Enterprise Ireland for making this comprehensive report on the
state of Regtech in APAC publicly available so that Regtech solution providers
from across the globe, as well as APAC policy makers, can benefit from its
findings to help drive further regtech adoption in the region," he added.
Key Regional Highlights:
Some insights from the report's overview include:
- Impact of Covid-19
Covid-19 accelerated the transition to digitisation of financial services,
particularly in the regulatory, risk and compliance sectors.
- Compliance Costs Expected to Rise
The projected cost of AML compliance across Indonesia, Malaysia, the
Philippines, and Singapore combined is estimated at US$6.09 billion annually,
with more than half of it in Singapore.
- Impact of Regulators Across APAC
Country-specific regulators have the most impact on regulatory compliance, but
Singapore's regulators also have substantial impact across APAC study countries.
- Regtech Adoption
Progress in regtech solutions in Developed APAC countries is starting to gain
speed, driven by regulators' need for greater oversight and a tighter
regulatory environment.
- Promising Areas for Regtechs
Market and industry drivers such as the rise of digital banks, P2P lending,
digital assets and remote onboarding present an opportunity for regtechs to
fill the need for specialised solutions.
- Changes in Regulation
Changes in regulatory stance puts increased focus on compliance and using new
technology to meet standards more efficiently and effectively.
- Roadblocks and Challenges
Long sales cycles challenge regtech adoption in Developed APAC while regulatory
inertia and lack of proper regulatory processes can hinder regtech adoption in
Developing APAC.
The State of Regtech in APAC report is available to download here [
]
[1] https://a-teaminsight.com/a-new-frontier-of-regulation-asia-takes-the-lead
[2] https://www.worldbank.org/en/publication/wdr2016/Digital-Adoption-Index
Photo -
https://mma.prnewswire.com/media/1538668/Enterprise_Ireland_Mo_Harvey.jpg
Photo -
https://mma.prnewswire.com/media/1538666/The_State_of_Regtech_in_AsiaPac.jpg
SOURCE: Enterprise Ireland
本プレスリリースは発表元が入力した原稿をそのまま掲載しております。また、プレスリリースへのお問い合わせは発表元に直接お願いいたします。
このプレスリリースには、報道機関向けの情報があります。
プレス会員登録を行うと、広報担当者の連絡先や、イベント・記者会見の情報など、報道機関だけに公開する情報が閲覧できるようになります。