Regnosys backs UK fintech funding but urges infra reform

REGnosys has welcomed additional government funding for the Centre for Finance, Innovation and Technology, as ministers outlined broader measures for the UK fintech sector.

Chief executive and founder Leo Labeis described the extra £1 million for CFIT as a positive step, but argued that support for growth must go beyond funding announcements and policy signals. He focused on the practical systems and standards firms need to expand and remain in the UK market.

His intervention places REGnosys within a wider debate over how Britain can retain fintech companies as they mature. Ministers have sought to improve the environment for listings and investment, but parts of the sector want greater attention on the structures that govern data, reporting and compliance.

Labeis linked that issue to the government's recent emphasis on capital markets and initial public offerings. Better listing conditions matter, he said, but they are only one factor for companies deciding where to build and grow.

"Additional support for CFIT is welcome, and it is encouraging to see the conversation at UK FinTech Week focus not just on innovation, but on the conditions firms need to scale in the UK. The future of UK fintech will rely as much on coordination and delivery as it does on new ideas.

The renewed focus from government on capital markets competitiveness and IPO attractiveness is also important. Measures that improve the listing environment send a positive signal to founders and investors, but the real test is whether that ambition is matched by investment in the infrastructure that makes growth operationally viable.

Common data models, machine-readable rules and interoperable reporting frameworks are no longer technical afterthoughts. They are strategic enablers of a modern financial system, helping firms scale more efficiently, reduce compliance friction and strengthen resilience.

London already has deep pools of capital, world-class talent and a strong regulatory base. To build on that, the UK has to show it will back high-growth sectors such as RegTech with the modern infrastructure needed to innovate, scale and ultimately list here," Labeis said.

Infrastructure Focus

The comments highlight a recurring concern among financial technology companies: growth is constrained not only by access to capital, but also by fragmented operational requirements. Firms expanding across regulated markets must navigate multiple reporting formats, differing data standards and rulebooks that remain difficult to translate into automated systems.

For RegTech companies, those frictions sit at the centre of their business models. The sector argues that clearer data structures and machine-readable regulation can reduce duplication for both financial institutions and supervisors, while making it easier for smaller firms to compete.

That view aligns with a broader push in UK financial services to modernise the plumbing behind regulation. Common data models can help institutions use the same definitions across internal systems and external reporting. Machine-readable rules aim to convert legal and supervisory requirements into formats software can process more directly. Interoperable reporting frameworks are intended to reduce the need for firms to submit similar information repeatedly in different ways.

Scale And Listings

The listing question remains politically sensitive because many UK technology firms have chosen to raise capital or float in other markets. Policymakers increasingly frame that trend as both a competitiveness issue and a test of whether Britain can turn early-stage innovation into larger domestic businesses.

Labeis's remarks suggest the answer will depend partly on whether regulatory and reporting systems keep pace with policy ambitions. Even where capital is available, firms may still weigh the costs of compliance, integration and expansion when deciding where to locate teams, invest and seek a public listing.

London already offers established advantages in finance, skills and regulation, he noted. His argument is that maintaining that position now requires sustained backing for the systems that make those strengths usable for fast-growing companies.

The focus on RegTech is notable because the sector often sits between financial services policy and digital infrastructure policy. Supporters say it can improve efficiency and resilience across the wider market, rather than serving only a narrow group of software firms.

By framing common data models, machine-readable rules and reporting standards as strategic rather than technical issues, Labeis pushed the discussion beyond fintech promotion alone. His central point was that if the UK wants more firms to scale and list domestically, the operating environment must support that ambition.