Digital Regulatory Governance: The Role of RegTech and SupTech in Transforming Financial Oversight and Administrative Capacity

Niloufar Bagherifam, Sajjad Naghdi (), Vahid Ahmadian, Alireza Fazlzadeh and Milad Baghalzadeh Shishehgarkhaneh
Additional contact information
Niloufar Bagherifam: Department of Business Administration, Faculty of Management and Economics, University of Tabriz, Tabriz 5166616471, Iran
Sajjad Naghdi: Department of Accounting, Faculty of Economics and Management, University of Tabriz, Tabriz 5166616471, Iran
Vahid Ahmadian: Department of Accounting, Faculty of Economics and Management, University of Tabriz, Tabriz 5166616471, Iran
Alireza Fazlzadeh: Department of Accounting, Faculty of Economics and Management, University of Tabriz, Tabriz 5166616471, Iran
Milad Baghalzadeh Shishehgarkhaneh: Department of Civil Engineering, Monash University, Melbourne 3800, Australia

IJFS, 2025, vol. 13, issue 4, 1-59

Abstract: Rapid digitalization is transforming how public and private institutions manage regulation, compliance, and supervision. This paper explores the rise of Regulatory Technology (RegTech) and Supervisory Technology (SupTech) as instruments of digital regulatory governance and examines their implications for administrative efficiency, defined as the optimization of regulatory and supervisory processes through automation and data-driven coordination, institutional capacity, and policy innovation. Using a systematic literature review of 59 peer-reviewed studies published between 2017 and 2025, the study identifies how RegTech enhances compliance management and risk control in financial institutions, while SupTech enables regulators to improve supervisory agility, transparency, and real-time oversight. The findings show that these technologies create significant administrative value by streamlining reporting, enhancing accountability, and strengthening governance networks across the public–private interface. However, adoption is constrained by cybersecurity vulnerabilities, algorithmic opacity, regulatory fragmentation, and organizational resistance. To address these issues, the study proposes an integrated governance framework that maps opportunities and barriers across compliance, risk, technology, and institutional coordination. By synthesizing fragmented evidence, this research contributes to the field of administrative sciences by positioning RegTech and SupTech not only as technical innovations but as transformative tools of digital public administration and regulatory modernization.

Keywords: regulatory governance; administrative innovation; digital transformation; RegTech; SupTech; supervisory technology; financial regulation; institutional capacity (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-7072/13/4/217/pdf (application/pdf)
https://www.mdpi.com/2227-7072/13/4/217/ (text/html)

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:gam:jijfss:v:13:y:2025:i:4:p:217-:d:1794898

Access Statistics for this article

IJFS is currently edited by Ms. Hannah Lu

More articles in IJFS from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().