An innovative RegTech approach to financial risk monitoring and supervisory reporting

Kavassalis, Petros; Stieber, Harald; Breymann, Wolfgang; Saxton, K. E.; Gross, Francis

doi:10.1108/jrf-07-2017-0111

Cited by 35 publications

(23 citation statements)

References 24 publications

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“…It entails accessing and evaluating relevant data from various sources, examining historical alerts, and searching for negative information on customers and their counterparties through public domain searches. The use of distributed ledger technology (DLT) has enabled the smooth and seamless sharing of information between financial organisations and regulators [36]. This has resulted in the faster delivery and verification of KYC data and significant savings on time spent on the manual reconciliation of documents.…”

Section: The Digital Transformation Of Datamentioning

confidence: 99%

GDPR Compliance Tools: Best Practice from RegTech

Ryan

Crane

Brennan

2021

Lecture Notes in Business Information Processing

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Organisations can be complex entities, performing heterogeneous processing on large volumes of diverse personal data, potentially using outsourced partners or subsidiaries in distributed geographical locations and jurisdictions. Many organisations appoint a Data Protection Officer (DPO) to assist them with their demonstration of compliance with the GDPR Principle of Accountability. The challenge for the DPO is to monitor these complex processing activities and to advise and inform the organisation with regard to the organisations demonstration of compliance with the Principle of Accountability. A review of GDPR compliance software solutions shows that organisations are being greatly challenged in meeting compliance obligations as set out under the GDPR, despite the myriad of software tools available to them. Many organisations continue to take a manual and informal approach to GDPR compliance. Our analysis shows significant gaps on the part of GDPR tools in their ability to demonstrate compliance in that they lack interoperability features, and they are not supported by published methodologies or evidence to support their validity or even utility. In contrast, RegTech has brought great success to financial compliance, using technological solutions to facilitate compliance with, and the monitoring of regulatory requirements. A review of the State of the Art identified the four success features of a RegTech system to be, strong data governance, automation through technology, interoperability of systems and a proactive regulatory framework. This paper outlines a set of requirements for GDPR compliance tools based on the RegTech experience and evaluate how these success features could be applied to improve GDPR compliance. A proof of concept prototype GDPR compliance tool was explored using the four success factors of RegTech, in which RegTech best practice was applied to regulator based self-assessment checklist to establish if the demonstration of GDPR compliance could be improved. The application of a RegTech success factors provides opportunities for demonstrable and validated GDPR compliance, notwithstanding the risk reductions and cost savings that RegTech can deliver and can facilitate organisations in meeting their GDPR compliance obligations.

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Section: The Digital Transformation Of Datamentioning

confidence: 99%

GDPR Compliance Tools: Best Practice from RegTech

Ryan

Crane

Brennan

2021

Lecture Notes in Business Information Processing

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“…One example of RegTech for financial firms is automated reporting. Automated reporting enhances firms’ efficiency, avoiding that firms’ employees manually submit files (template-based reports) that take up a substantial amount of resources and are prone to errors [ 57 ]. Ad-hoc data requests from resolution authorities would not be done anymore via basic web portals, or via e-mail, but via the analytical technology that allows continuous information flows.…”

Section: Restech For Financial Institutionsmentioning

confidence: 99%

ResTech: innovative technologies for crisis resolution

Loiacono¹,

Rulli

2021

J Bank Regul

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The use of financial technologies (FinTech) by financial market participants fostered a discussion among public authorities on the use technologies for regulatory (RegTech) and supervisory (SupTech) purposes. This paper discusses the application of innovative technologies to crisis resolution (ResTech) and sets out its potential scope of application. ResTech is the application of technologies: i) to support the work of resolution authorities in developing resolution plans and in resolving financial firms; and ii) to allow financial firms to achieve regulatory compliance and better risk management in a more effective and automated manner. This paper also argues that the features and market dynamics of resolution differ from those of RegTech and SupTech: there is little market incentive for the private sector to foster innovation in the area of crisis resolution. The lack of private sector incentives to invest in R&D on how to resolve a firm’s crisis leaves the task to resolution authorities. In addition, resolution-technologies may support the identification of optimal liquidation strategy for small and medium-sized financial firms, by ensuring the maximisation of creditors’ proceeds out of the insolvency estate.

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“…The topics that follow in the list of the most frequent hits are ‘financial regulation’ (16.7%) and ‘transaction monitoring’ (12.8%). Concerning financial regulation, Kavassalis, Stieber, Breymann, Saxton, and Gross (2018) presented a RegTech approach for regulation purposes through the application of distributed ledger technologies. Regarding conspicuous financial transactions, Salami (2017) investigated whether RegTech applications are capable of preventing the financing of terrorism.…”

Section: Areas Of Interestmentioning

confidence: 99%

RegTech—the application of modern information technology in regulatory affairs: areas of interest in research and practice

Becker¹,

Merz

Buchkremer

2020

Intell Sys Acc Fin Mgmt

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We provide a high-level view on topics addressed in scientific articles about regulatory technology (RegTech), with a particular focus on technologies used. For this purpose, we first explore different denominations for RegTech and derive search queries to search relevant literature portals. From the hits of that information retrieval process, we select 55 articles outlining the application of information technology in regulatory affairs with an emphasis on the financial sector. In comparison, we examine the technological scope of 347 RegTech companies and compare our findings with the scientific literature. Our research reveals that 'compliance management' is the most relevant topic in practice, and 'risk management' is the primary subject in research. The most significant technologies as of today are 'artificial intelligence' and distributed ledger technologies such as 'blockchain'.

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An innovative RegTech approach to financial risk monitoring and supervisory reporting

Cited by 35 publications

References 24 publications

GDPR Compliance Tools: Best Practice from RegTech

GDPR Compliance Tools: Best Practice from RegTech

ResTech: innovative technologies for crisis resolution

RegTech—the application of modern information technology in regulatory affairs: areas of interest in research and practice

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