Home > News & Events > A ‘Needed Awakening’ to Regulatory and Technological shifts in the Industry

In 2023, the financial market was rocked by the collapse of several banks, leading to heightened concerns about market stability and confidence in the banking system among regulators. Amidst a volatile geo-political scenario, regulators are broadening their risk lenses to include both financial (e.g., Basel-IV, FRTB, IRRBB, ESG) and non-financial risks (e.g., DORA, AI, Cyber) and extended surveillance of a few bad actors (e.g., greenwashing, AML/CTF).

Globally, while the regulators today emphasise on the importance of financial and non-financial risk management for financial institutions (FIs), they are also efficiently embracing digital solutions for regulatory compliance. Regulations are progressively getting more tech-enabled and mature, with data increasingly being provided in machine-readable formats, and guidance being provided in terms of technical standards.

These regulatory and technological shifts are rapidly reshaping the financial landscape, pushing FIs to adapt quickly. Organisations must navigate increased regulatory scrutiny while staying agile in the face of technological advancements. This requires proactive alignment with supervisory directives and investment in flexible, scalable technology infrastructure. 

A recent regulatory compliance report, titled ‘Rude Awakening 2024 – Realignment with a new regulatory course,’ attempted to provide a bird’s eye view of key regulatory and technological developments in the US and EU between January and July 2023 that will impact the FIs. The report detailed the importance of meeting the evolving supervisory expectations with harmonisation and standardisation, highlighting that innovation is vital for leadership teams to efficiently manage risk and regulatory obligations while also being prepared to seize future growth opportunities.  

Drawing results from primary research covering 25+ key regulations that will affect the industry, the report assesses their impact on FIs–focusing on financial and non-financial risks, ESG considerations, and efforts to standardise data.

Compliance demands on the rise for Financial Institutions 

The escalation of regulatory compliance obligations will continue to increase in volume, scale, and complexity, along with evolving supervisory expectations and jurisdictional differences, presents ongoing challenges for FIs. To address these challenges, FIs are increasingly turning to RegTech solutions, leveraging technologies such as AI, ML, and Cloud. These tools are vital for navigating regulatory issues and ensuring compliance.

However, it’s crucial to recognize that relying solely on RegTech solutions may not be sufficient to meet the growing demands of regulatory obligations. FIs must also align their internal operating models to maximize the return on investment in RegTech. This entails remodeling strategies and operations to optimize the effectiveness of RegTech solutions and generate tangible ROI.  


The year 2023 has underscored the urgent need for financial institutions (FIs) to navigate a swiftly evolving regulatory and technological landscape. As regulators expand their focus to include both financial and non-financial risks, FIs must adapt rapidly, harnessing digital solutions like RegTech to ensure compliance. However, to truly thrive amid mounting compliance pressures, FIs must not neglect the importance of internal restructuring and strategic realignment. By optimizing their operational frameworks and investing in innovative approaches, FIs can effectively manage risks, bolster regulatory compliance, and capitalize on new growth opportunities in an increasingly complex environment.

About The Author

P-VenkateshAs the Co-founder and whole-time Director at Maveric, P Venkatesh (PV) leads the global thought leadership function aimed at shaping and promoting Maveric’s perspectives as well as expertise in the banking technology space. By building relationships with industry influencers, partners and BankTech ecosystem leaders, PV drives creation of impactful frameworks, methodologies and landscape reports that provide informed perspectives on new age technologies that shape the BankTech space. 

Orginally Published in CXO Today

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Maveric Systems