The road to RegTech: the (astonishing) example of the European Union

Ross P. Buckley (), Douglas W. Arner, Dirk A. Zetzsche and Rolf H. Weber
Additional contact information
Ross P. Buckley: UNSW Sydney
Douglas W. Arner: University of Hong Kong
Dirk A. Zetzsche: University of Luxembourg
Rolf H. Weber: University of Zurich

Journal of Banking Regulation, 2020, vol. 21, issue 1, No 4, 26-36

Abstract: Abstract Europe’s road to RegTech has rested upon four apparently unrelated pillars: (1) extensive reporting requirements imposed after the Global Financial Crisis to control systemic risk and change in financial sector behaviour; (2) strict data protection rules reflecting European cultural concerns about data privacy and protection; (3) the facilitation of open banking to enhance competition in banking and particularly payments; and (4) a legislative framework for digital identification to further the European Single Market. The paper analyses these four pillars and suggests that together they are underpinning the development of a RegTech ecosystem in Europe and will continue to do so. We argue that the European Union’s financial services and data protection regulatory reforms have unintentionally driven the use of regulatory technologies (RegTech) by intermediaries, supervisors and regulators, and provided an environment within which RegTech can flourish. The experiences of Europe in this process will provide insights for other societies in developing their own RegTech ecosystems in order to support more efficient, stable, inclusive financial systems.

Keywords: Data protection; Digital identity; FinTech; European Union; Financial regulation; General Data Protection Regulation (GDPR); Open banking; Payment Services Directive 2 (PSD 2); RegTech (search for similar items in EconPapers)
JEL-codes: D23 G38 K22 L22 M15 O16 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://link.springer.com/10.1057/s41261-019-00104-1 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jbkreg:v:21:y:2020:i:1:d:10.1057_s41261-019-00104-1

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/41261/PS2

DOI: 10.1057/s41261-019-00104-1

Access Statistics for this article

Journal of Banking Regulation is currently edited by Dalvinder Singh

More articles in Journal of Banking Regulation from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().