Towards A Smart Regulatory Compliance, The Capabilities of RegTech and SupTech

Abstract

Global financial crisis made the financial regulation volume increase. Financial institutions needed to interpret new regulations and swiftly adjusted to them. RegTech, Regulatory Technology, was born to ease the regulatory requirements compliance process. RegTech was then also adopted by supervisor and/or regulator to supervise the compliance of financial institutions. The adoption of RegTech by supervisor is called SupTech (Supervisory Technology). RegTech and SupTech were discussed mostly in banking or financial research. This paper tries to bring more nuance to information technology e.g., the capabilities and their underpinning technology. Hence, RegTech/SupTech can be more discussed in computer science research. This paper also concludes the definition of RegTech/Suptech and states one core capability of RegTech with its four pillars.