‘Tsunami of regulation’ leads to boost for Kildare financial compliance firm

The “tsunami of regulation” facing financial firms is leading to increased demand for the services of AQMetrics, a Kildare firm which provides an online platform to help companies in the sector ensure regulatory compliance.

“It has become a huge challenge for the industry. The net has kept getting wider in terms of who the regulators focus on and what they regulate. The tsunami of regulation just keeps coming,” Geraldine Gibson, chief executive and founder of the firm, told the Business Post.

“Now portfolio managers, for example, have to report how exposed they are to environmental, social and governance factors. For us, it’s been a bit like being on a train that just keeps on going to different stations. There is no terminus, because regulations keep getting added.”

Founded in 2012, AQMetrics has more than 40 staff. As well as its headquarters in Maynooth, it has offices in London, Singapore and New York, and is aiming to have 50 staff by the end of the year.

“Instead of a firm having to invest in IT solutions, we use our technology to create best practice standard reports that go to regulators. We sell and licence that technology to the client, rather than them having to build it themselves,” Gibson said.

“I had worked for Susquehanna, the trading and technology firm, where I was building risk models for traders. I knew the nuts and bolts of what was needed, and what regulators would want.”

AQMetrics has been supported by Enterprise Ireland since 2012, and the state body became an equity investor in 2016.

“Our very first customer was a large Swiss bank based in London. Enterprise Ireland introduced us to them, and that got us going as a business. It would have been so much harder for us if Enterprise Ireland hadn’t opened that door,” Gibson said.

“One customer begets another, because there’s a lot of trust and referral when you’re dealing with financial institutions. Customers tell their peers to talk to us. From the very beginning, it was so important for us as a technology provider to have heavy-hitting clients who would provide references for us. It showed that we meant business and were serious.”

The key focus for the next year for AQMetrics is to grow its US operation. “Our largest investor is based there, and 50 per cent of our target market is there too, so we want to really grow that business,” said Gibson.

“We have an office on Park Avenue in New York, but we want to build up that office more. We are also examining setting up an office in Connecticut or New Jersey to link up with the investment community there as well. Building that team out will give us the bandwidth to do more for our US customers.”

This Making it Work article is produced in partnership with Enterprise Ireland