Download pdf
Digitalization of RegTech - Critical Review in China
- 1 The University of Sydney
* Author to whom correspondence should be addressed.
Abstract
With the advancement of technology and the digital development of China's economy, Fintech has steadily integrated into various financial sectors, giving rise to the application of regulatory technology. The article was drawn from an academic perspective combined with practice-oriented research. Begin by tracing the developmental history of regtech, correlating its evolution with various societal development stages, and summarize the digitization process of regtech. The article offers a modular review of regtech applications within China's economic development context, categorizing them into regulatory and compliance technology. Regulatory technology employs emerging technologies such as big data, AI, and cloud computing for real-time surveillance of anomalous market financial data, transitioning from ex-post regulation to ex-ante prediction. Compliance technology encompasses Customer Identity Management, Transaction Monitoring, Financial Risk Alerts, Automated Regulatory Reporting, and Financial Decision-making. This article posits that regtech is no longer exclusively for financial markets but could be applied as a risk-monitoring tool across various industries, proposing novel risk-compliance tools for regulators and compliance officials. In conclusion, the article sets forth the digital transformation requirements for regtech, advocating for digital standardization, enhancement of digital sharing capabilities, algorithmic development and application, and improved digital security. This provides forecasts and tangible suggestions for the digital transformation of regtech.
Keywords
RegTech, digitalization, data standardization
[1]. Andrew, G., Stacey, S., Stacey, S., & Meihui, Z. (2020). RegTech innovation and cooperation - Australia Andrew, G., Stacey, S., Stacey, S., & Meihui, Z. (2020). RegTech innovation and cooperation - Australia and China compared. AUSTRALIAN JOURNAL OF ASIAN LAW, 21(1), 39–55.
[2]. Arner, D. W., Zetzsche, D. A., Buckley, R. P., & Barberis, J. N. (2017). FinTech and RegTech: Enabling Innovation While Preserving Financial Stability. Georgetown journal of international affairs, 18(3), 47–58. https://doi.org/10.1353/gia.2017.0036
[3]. Bolton, M., & Mintrom, M. (2023). RegTech and creating public value: opportunities and challenges. Policy design and practice, ahead-of-print(ahead-of-print), pp. 1–17. https://doi.org/10.1080/25741292.2023.2213059
[4]. Butler, T., & Brooks, R. (2018). On the role of ontology-based RegTech for managing risk and compliance reporting in the age of regulation. Journal of risk management in financial institutions, 11(1), 19–33.
[5]. D.W. Arner, J. Barberis, R.P. Buckey .2016 FinTech, RegTech, and the reconceptualization of financial regulation, Nw. J. Int'l L. & Bus. 37 371.
[6]. E. Aktas, K. Roland. (2021). Fintech revolution, regulatory and supervisory challenges, and opportunities for improvement by utilizing regtech and suptech, International Journal of Business Research and Information Technology 8 (1) 82–92.
[7]. Ivanoski, J., & Bailey. D, & Walters. M, & Vazirani, J. 2017, The transformative power of regtech. Frontiers in Finance: For decision-makers in financial services 57 14–17.
[8]. K. Yeung. (2018). Algorithmic regulation: a critical interrogation, Regulation & Governance 12 (4) 505–523.
[9]. Mengfei, L., Jie, F., & Xiaowei, L. (2022). RegTech: Theory and Practice in Technology-Driven Financial Regulation. Frontiers of economics in China, 17(1), 164. https://doi.org/10.3868/s060-015-022-0007-3
[10]. O.C. Elimelech, S. 2022 Ferrante, N. Josman, S. Meyer, F. Lunardini, J. Gomez-Raja, ´S. Rosenblum, technology use characteristics among older adults during the COVID-19 pandemic: a cross-cultural survey, Technol. Soc. 71 102080.
[11]. Patani, B. (2019). "RegTech: 'A Safe Bet for Tackling AML and Fraud in the Gambling Sector'."In The RegTech Book: The Financial Technology Handbook for Investors, Entrepreneurs andVisionaries in regulation, edited by J. Barberis, D. Arner, and R. Buckley, pp. 292–295. NewYork: Millennial Ltd.
[12]. S. Narang. (2021). Accelerating Financial Innovation through RegTech: A New Wave of FinTech. In Fostering Innovation and Competitiveness with FinTech, RegTech, and SupTech (Pp. 61–79, IGI Global.
[13]. Zou, J., and L. Schiebinger. 2018. "AI Can Be Sexist and Racist—It is Time to Make It Fair."Nature 559 (7714): 324–326. doi:10.1038/d41586-018-05707-8.
[14]. 程雪军, & 尹振涛. (2022). 监管科技的发展挑战与中国选择：基于金融科技监管视角. 经济体制改革(01), 135-142.
[15]. 何海锋, 银丹妮, & 刘元兴. (2018). 监管科技(Suptech):内涵、运用与发展趋势研究. 金融监管研究(10), 65-79. https://doi.org/10.13490/j.cnki.frr.2018.10.005
[16]. 孙国峰. (2018). 发展监管科技构筑金融新生态. 清华金融评论(03), 16-19. https://doi.org/10.19409/j.cnki.thf-review.2018.03.003
Cite this article
Li,Z. (2023). Digitalization of RegTech - Critical Review in China. Journal of Applied Economics and Policy Studies,1,57-65.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Journal：Journal of Applied Economics and Policy Studies
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).