EXPLAINER

How RegTech Is Helping Banks Manage Risks

Banks and other financial institutions are turning to technology to meet increasingly stringent and costly compliance requirements. Photo: ADB.
Banks and other financial institutions are turning to technology to meet increasingly stringent and costly compliance requirements. Photo: ADB.

Through digitization and automation of routine compliance obligations, RegTech is helping improve efficiency, reporting accuracy, and transparency in the financial sector.

Introduction

Annual spending on regulatory compliance by banks and other financial institutions increased significantly after the 2008 Global Financial Crisis. In order to better manage risks, multiple regulatory bodies expect institutions to report massive amounts of data frequently.

RegTech offers a cost-effective solution to meeting regulatory obligations through digitization and automation. For regulators, access to data facilitates effective monitoring of developments in the market.


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Meet the experts

  • Douglas W. Arner
    Kerry Holdings Professor in Law, University of Hong Kong

    Douglas W. Arner is the Kerry Holdings Professor in Law at the University of Hong Kong, director of the Faculty of Law’s LLM in Compliance and Regulation, and project coordinator of a 5-year project funded by the Research Grants Council on Enhancing Hong Kong’s Future as a Leading International Financial Centre.

  • Janos Barberis
    FinTech HK Founder and Senior Research Fellow, Hong Kong University Law School

    Janos Barberis is the founder of FinTech HK and SuperCharger, a fintech accelerator in Hong Kong. His expertise focuses on regulatory considerations raised by the development of financial technology.

  • Ross Buckley
    King & Wood Mallesons Professor of International Finance Law, University of New South Wales

    Ross Buckley is the King & Wood Mallesons Professor of International Finance Law and a Scientia Professor at University of New South Wales Sydney. His research focus is on enabling regulation of digital financial services. He co-edits two-book series on international banking law and global trade law for Wolters Kluwer of The Hague.

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   India, Finance sector development, Information and communication technology
   Last updated: June 2017

 




Disclaimer

The views expressed in these articles are those of the authors and do not necessarily reflect the views of the Asian Development Bank, its management, its Board of Directors, or its members.




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