RegTech innovations streamlining compliance, reducing costs in the financial sector
1 NHS Lothian, United Kingdom.
2 Department of Corporate Services, Gelose Marine Services Nig. Ltd, Port Harcourt, River State, Nigeria.
3 Independent Researcher, Lagos.
4 Independent Researcher, Canada.
Review Article
GSC Advanced Research and Reviews, 2024, 19(01), 114–131
Article DOI: 10.30574/gscarr.2024.19.1.0146
Publication history:
Received on 06 March 2024; revised on 19 April 2024; accepted on 22 April 2024
Abstract:
Regulatory Technology (RegTech) innovations are reshaping the landscape of compliance within the financial sector, presenting opportunities for institutions to enhance efficiency and reduce operational costs. This paper examines the impact of RegTech solutions by focusing on their capacity to streamline compliance processes and mitigate expenses associated with regulatory adherence. Through a qualitative research methodology that includes case studies and expert interviews, the study explores the various dimensions of RegTech applications, ranging from identity verification and risk management to fraud prevention and regulatory reporting.
Key findings indicate that RegTech tools leverage advanced technologies such as artificial intelligence, machine learning, and blockchain to automate complex compliance tasks, thereby reducing the need for manual intervention and minimizing human error. These technologies facilitate real-time monitoring and analysis of transactions, which enhances compliance accuracy and operational efficiency. Furthermore, the paper reveals that the adoption of RegTech solutions significantly lowers compliance costs by optimizing resource allocation and reducing the time and labor traditionally required for compliance-related activities.
The study concludes that RegTech innovations hold the potential to transform the financial sector's approach to compliance management. By embracing these technologies, financial institutions can not only ensure regulatory compliance more effectively but also achieve considerable cost savings. The paper calls for further research into the long-term impacts of RegTech adoption on the financial industry's regulatory landscape and suggests that regulatory bodies and financial institutions collaborate to foster an environment conducive to RegTech innovation and implementation.
Keywords:
RegTech, Financial Sector; Compliance Management; Operational Efficiency; Risk Mitigation; Automation, Regulatory Frameworks; Operational Cost Savings; Data Privacy; Scalability; Legacy Systems; Artificial Intelligence (AI); Blockchain Technology; Cloud Computing; Stakeholder Engagement; Continuous Learning; Innovation Culture; Strategic Asset; Regulatory Changes; Digital Transformation
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0
