Exploring the trends, challenges, and opportunities of regulatory technology (RegTech) in the financial industry: A systematic literature review

This systematic literature review explores the growing field of regulatory technology (RegTech) in the financial industry, synthesizing research, and develop-ments to provide a comprehensive understanding of trends, challenges, and opportu-nities. RegTech, a subset of fintech, leverages advanced technologies like artificial intelligence, machine learning, and blockchain to streamline regulatory compliance processes and reduce associated costs. A systematic search was conducted in data-bases, Scopus, and Web of Science, to identify relevant articles published between 2016 and 2023. After a rigorous screening and selection process, 48 articles were deemed eligible for inclusion in the review. RegTech presents numerous opportunities for the financial industry. The review highlights the potential for enhanced regulatory efficiency, reduced costs, and improved risk management. RegTech adoption may foster financial inclusion and pave the way for more innovative solutions to address regulatory challenges. Further research is recommended to explore RegTech's role in supporting emerging technologies, such as decentralized finance (DeFi), and to un-derstand its impact on financial stability and consumer protection.