MANAGING REGULATORY CHANGE FOR FINANCIAL INSTITUTIONS

Hazik Mohamed

Chapter 12 in Beyond Fintech:Technology Applications for the Islamic Economy, 2020, pp 227-246 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The persistent financial crises in the last few decades have transformed the global regulatory framework radically, in a concerted effort to enhance the resilience of financial institutions, recapture investor confidence, and improve the overall financial system.Many financial institutions are struggling with ever-changing regulatory requirements and increased burden of complex rules. Often, such global and local due diligence rules can be conflicting, and non-compliance or the inability to meet the deadlines subject institutions to hefty penalties and multi-dollar fines for lapses in anti-money laundering, know your customer (KYC) and over-the-counter (OTC) trading regulations.In this chapter, we map out the ongoing regulatory milestones globally and use the snapshot between Q3 2019 to Q2 2021 to illustrate the key regulatory priorities by region, and propose how banks can effectively manage regulatory change within their organizations through an AI-driven regulatory management model. We discuss the evolution, challenges, and recommendations for financial institutions (including Shariah compliance) in the change management for regulations using a structured approach that addresses regional priorities.

Keywords: Ethics and Technology; Digital Transformation; Regional Development; Customer Behaviour; Evolution of FinTech; Global Landscape; Payments; Asset under Management; InsurTech; Investments; Cloud Computing; Big Data Analytics; Blockchain; Internet of Things (IoT); Robo Advisors; Artificial Intelligence; Machine Learning; Islamic Finance; Endowment; Intellectual Property; Fraud Detection; Risk Mitigation; Cost-Effective; Increased Productivity; Immutable; Know Your Client (KYC); Media Rights; Coordination; Efficiency; Consensus-building; Agility; Scalability; Innovation; Cybersecurity; Collaboration; Venture Capital; Enterprise Solutions; Era of Digitization; Digital Ecosystem; Disruptive Models; Market Insights; Predictive Analytics; Insurance; Takaful; Capital Markets; Distributed Ledgers (DLT); Wealth Management; Islamic Markets; Sharing Economy; Trust Mechanism; Open Platforms; Web and Mobile; Cloud Computing; Trades and Settlements; Regulatory Controls; User Defined; Institutional Economics; Cryptocurrency (Tokens); Public Registries; Smart Contracts; Securities Clearing; Automation; Enforceability; Claims Processing (search for similar items in EconPapers)
JEL-codes: G1 G11 G2 O3 O32 (search for similar items in EconPapers)
Date: 2020
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