When we say the RegTech market is exploding, we’re not exaggerating. By 2023, revenues are expected to be worth a whopping $12.3 billion, growing at a compound annual growth rate of 25.4% over the next five years.
With this unprecedented growth, comes a land grab with new players racing towards their share of the action in the highly regulated markets of North America, Europe, Asia & Australia. The growth of this industry is built on the back of solving big problems for banks and financial services institutions, who are facing an overwhelming volume of complex regulatory change and over 2,500 compliance rule books globally.
The cost of compliance to the banking industry alone is estimated to be a staggering $270 billion each year, so it’s no wonder that RegTech is booming, and so many new start-ups are keen to join this space. But how does a small regional start-up leverage the global opportunity and build a sustainable global pipeline?
Here are some tactical tips you might want to consider:
If you expect to compete with well-established organisations, you need to build a reputation and that all-important element of trust. Our advice is to get in front of major regulators in Europe. Understand the local regulations and local legislation. Meet with the major RegTech associations on the ground, present at their events and meet local compliance officers. Building those relationships is key. After all, you need to understand your markets and your prospect’s pain points before you can offer a suitable solution.
Define a strategy for which regulated entities you are going to contact. Who is your target audience? Spoiler alert: if your answer is “everyone”, you’re destined to fail….
When you’re starting out, your time is better spent focussing on specific markets. Think about Compliance personas in each region, and who you are trying to target……… BSA Officers in the US Markets, CF11’s in the UK, or Compliance & Geldwäschebeauftragter in Germany, the list is endless…
There are so many variations around the world of the Anti-Money Laundering & Compliance function, understanding each market well and demonstrating a proven track record before expanding into areas, is definitely the way to go.
Languages and Time Zones
This is a biggy that start-ups often forget about (until they’ve gone a couple of weeks on precious little sleep and have google translate in their favourites). Think about your ability to prospect into multiple time zones around the world. Many prospects will not necessarily be in your time zone, how will you scale your ability to engage with them on a long-term basis?
Have you considered how best to capture a prospect’s interest, how to deliver a great demo and new business meeting? Do you want to be getting up a 4am to run a demo in a different time zone? Once you win the business, how are you going to service these customers from a different time zone and in a different language? On balance, it might make sense to appoint someone locally or maybe be selective about the territories you initially target.
No matter what your strategy or size, talk to us. Global lead generation is what we do, and we have a team of highly skilled Business Discovery Agents ready to help you get a slice of the compliance pie. We hope you’re hungry! Call us on +44 (0) 203 326 8150