Presenting a Framework for Improving the Performance of Regulatory Compliance in the Banking System, through Application of Regulatory Technology

The ingress of multiple players into various spheres of business along with facilitating to render the required services through development of digital channels have per se, exasperated the competitive environment and pave the way for more concentration on improving the sundry of processes of business sectors in toto. However, taking into account the traditional approach of banks for providing the wide range of financial services, the amelioration of operations in different banking sectors can be possible viz-a-viz their active interactions with the new players of this industry, the so called FinTechs, Ipso facto.
In this context, we may observe that certain banking functions i.e. the regulatory compliance, anti-money laundering and risk management are among the tasks in which they can be deemed as the participation targets of some specialized FinTechs known as RegTechs which de facto may be construed as “Regulatory Technology”. Hence, in this paper an attempt is made to expound the concept of regulatory technology and its impellers in the initial stage and subsequently we have investigated some important issues such as the forthcoming trends of risk functions and regulatory compliance, the arena of application and the descried samples for successful operations of RegTech, Sine qua non. Finally a process of formulating a framework for adoption and implementation of “Regulatory Technology” in financial entities and banking systems has been envisaged, Sui generis.