ISBN: 978-93-94174-93-1

Regtech Innovations and Compliance Transformation in Banking

¹Assistant Professor, Department of Commerce (CA), VHNSN College (Autonomous), Virudhunagar, India

²Assistant Professor, Department of Commerce, VHNSN College (Autonomous), Virudhunagar, India

Regulatory Technology (RegTech) is an innovative response to the growing complexity of bank regulatory compliance. Due to increased financial regulation, banks are utilizing advanced technology, including Artificial Intelligence, Machine Learning, Big Data Analytics, and Block chain, as means to improve regulatory compliance and minimize operational risk. Additionally, through the use of these innovations, financial institutions have been able to implement automated processes for regulatory monitoring and reporting, risk assessment, and tracking; thus enhancing accuracy, transparency, and efficiency in regulatory compliance management. Finally, RegTech plays an essential role in assisting banks with detecting fraud, preventing money laundering, and complying with constantly changing regulatory requirements. Finally, the cost of compliance through the introduction of RegTech will decrease while providing real-time data analysis and decision-making capabilities to banks. Digital tools incorporated into regulatory processes provide increased levels of governance and improve the level of trust and accountability between financial institutions. This chapter will examine how RegTech has changed compliance strategies used by banks and will highlight the potential of RegTech to develop a more resilient, efficient, and technology-driven regulatory compliance framework.

*Corresponding author; e-mail: padmavathy@vhnsnc.edu.in

Cite this Chapter: Padmavathy N. and Jeyanthi R. 2026. Regtech Innovations and Compliance Transformation in Banking. In: Dr. Lubna Suraiya Dr. P. Kanchana (Eds.). Commerce Reimagined: The Future of Trade and Transactions (Vol-III). Excellent Publishers, India. pp. 74-83. doi: https://doi.org/10.20546/978-93-94174-93-1_3_5