Driving regtech exports key in Australia’s recovery
With regtech now part of a $6 billion export industry, the sector is poised to be crucial as Australia moves into a post COVID recovery.
This assessment was among key findings in a report by Austrade and CSIRO’s Data61.
The report highlighted data from the Export Council of Australia which found that ‘digital goods and services made up $6 billion of exports in 2018.
This made it Australia’s fourth largest export sector, highlighting that the industry could even double to $19 billion in 2030.
Here, ‘digital goods and services’ include data analytics, AI – which are already used by banking and other industries as well as regtech and blockchain.
As such the report highlights that these high tech solutions could “catalyst recovery” adding that Australian researchers and startups are at the forefront of development and adoption of these types of technologies.
The report also notes that there is room to do more to take advantage of this capability in the post-COVID-19 global economy.
The assessment has also been consistent with other industry research.
“Australia has cemented a globally leading position in regtech product development, and this provides us with an opportunity to scale and grow into export markets with the right Government support and an improved capital inflow,” RegTech Association CEO Deborah Young said.
Importantly, Young notes that while regtech is often referred to in a financial services context, there are a growing number of sector-agnostic product solutions that can be used across a number of industries including energy, telco, health services and government.
This opportunity has been underlined by the recent report from the Productivity Commission on RegTech,” Young added.
The association has also been vocal around the need for support in driving a viable export sector in regtech, proposing a number of solutions in its recent report.