Ian Halliday-Pegg, Chief Executive of RegTech Open Project PLC (LSE:RTOP), joins Proactive's Stephen Gunnion for an interview.
The conversation comes on the heels of the company's recent listing on the London Stock Exchange (LSE).
With technology dating back to 2005, RegTech Open Project is a leader in ensuring business continuity and risk assessment, particularly in collaboration with Everbridge.
Primarily serving the banking, financial services, and insurance sectors, the company is setting its sights on expansion in the UK, Europe, and beyond.
In this comprehensive chat, Halliday-Pegg discusses the company's unique value proposition, its impressive 95% client retention rate, and its plans for significant growth in a market projected to surpass $500 billion in the coming years.
Stephen Gunnion (SG): Ian. Could you start by telling us about RegTech Open Project?
Ian Halliday-Pegg (IHP): Certainly. We specialise in helping organisations maintain highly resilient operations, particularly in uncertain times marked by wars, financial shifts, and supply chain disruptions. Our technology enables businesses to identify and mitigate potential risks and adapt to unfolding situations.
SG: Could you elaborate on the technology that powers this resilience?
IHP: Our technology dates back to 2005 and focuses on ensuring continuity of operations. In collaboration with Everbridge, a leader in emergency mass notifications, we provide intelligence on risks and enable businesses to make timely decisions during unfolding events.
SG: Who are your primary customers?
IHP: Our primary customers are in the banking, financial services, and insurance sectors. These institutions face stringent regulatory demands to demonstrate robust operational resilience against various risks, including cyber threats and ransomware.
SG: You recently listed on the LSE. What was the rationale behind this move?
IHP: Our listing on the LSE provides us with the opportunity to expand geographically. We've secured about 60% of Italy's domestic banking market, and the listing allows us to target growth in the UK, Europe, and through partnerships, in the United States and China.
SG: Could you elaborate on your expansion plans?
IHP: The Pan-European operations are about seven times larger than Italy alone, where we started. The markets in China and the USA are about 20 times the size of our current market. The listing provides us with the capital to invest in these expansive markets.
SG: What makes RegTech Open Project a compelling investment?
IHP: We have a proven product-market fit and a 95% client retention rate. We've been growing our revenues by approximately 50% year-over-year. The operational resilience market is expected to surpass $500 billion in the coming years, making this a ripe opportunity for investors.
SG: Could you discuss the regulatory landscape and how it impacts your business?
IHP: Governments have introduced onerous regulations requiring financial institutions to demonstrate operational resilience. This creates an opportunity for us to help businesses that are struggling with inefficient and costly compliance processes.
SG: How do you see the market for operational resilience evolving?
IHP: The market is currently worth around $200 billion per annum and is growing at a compounded annual growth rate of about 17%. It's expected to be over $500 billion in the next few years, offering significant growth opportunities for companies like ours.
SG: Thank you for your time today, Ian. We look forward to tracking RegTech Open Project's journey in the coming years.