Due to the global financial crisis of 2007-2008, several financial regulations are brought by the regulators with high reporting standards, which are to be followed by financial institutions. Every year, these requirements are increasing and it has become a challenge for financial institutions to meet the requirements manually, due to the high cost and increasing number of complex compliance requirements. These compliance challenges created the market for RegTech, which is a part of FinTech industry, where the RegTech industry promise to act as a solution to reduce compliance cost and burden for financial institutions as well as regulators. The purpose of this paper is to present a systematic literature review conducted, on applying RegTech to reduce compliance cost and burden, while focusing on promising RegTech tools and various benefits and challenges of RegTech. The area of RegTech is very recent, which results in a gap in literature and research for the purpose of this review. Future areas for research are provided in this paper.
Volume 11 | 11-Special Issue