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Integrating Regulatory Technology (RegTech) into the digital transformation of a bank Treasury

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  • Johan Solms

Abstract

The volume and complexity of financial regulations have increased significantly since the 2008 financial crisis. This has put increasing pressure on banks to monitor and report a range of intricate exposures to comply with new prudential requirements. Regulatory Technology (RegTech) is an emerging technology trend leveraging information technology and digital innovations that can greatly assist with a bank’s regulatory management process. A consideration is that these technologies can sometimes be expensive and inefficient if deployed on an ad hoc and stand-alone basis. An option is to incorporate RegTech into the digital transformation strategy of a management function such as Treasury. Integrated adoption would mean the digital platform can be deployed to support both strategic management activities and enhanced regulatory processes within Treasury, thereby ensuring commercial and prudential objectives are aligned. RegTech can provide an invaluable tool, in a business-as-usual environment, as well as in real-life stress events, such as the recent coronavirus outbreak. This paper explores the potential of RegTech and the merit of incorporating it into a Smart Treasury department.

Suggested Citation

  • Johan Solms, 2021. "Integrating Regulatory Technology (RegTech) into the digital transformation of a bank Treasury," Journal of Banking Regulation, Palgrave Macmillan, vol. 22(3), pages 191-207, September.
    • Handle: RePEc:pal:jbkreg:v:22:y:2021:i:3:d:10.1057_s41261-020-00138-w
    DOI: 10.1057/s41261-020-00138-w
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    Cited by:

    1. Laura Grassi & Davide Lanfranchi, 2022. "RegTech in public and private sectors: the nexus between data, technology and regulation," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(3), pages 441-479, September.
    2. Jinying Li & Ananda Maiti & Jiangang Fei, 2023. "Features and Scope of Regulatory Technologies: Challenges and Opportunities with Industrial Internet of Things," Future Internet, MDPI, vol. 15(8), pages 1-27, July.
    3. Teichmann, Fabian & Boticiu, Sonia & Sergi, Bruno S., 2023. "RegTech – Potential benefits and challenges for businesses," Technology in Society, Elsevier, vol. 72(C).

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    More about this item

    Keywords

    Regulatory Technology (RegTech); Smart Treasury; Digital technology; Innovation; Regulations and compliance; Coronavirus;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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