Managing Regulatory Change in Investment Banks: A Governance and Technology Perspective

The regulatory change in the financial services sector is an important transformative change in the regulations, which is driven by international regulatory changes, including Basel III, MiFID II, Dodd-Frank, and GDPR. These new regulations bring about intricate compliance issues of investment banks and provide it with an opportunity to enhance governance and use advanced technologies. This paper explains how investment banks have handled the change in regulation by adopting sound governance frameworks, technology adoption within compliance units as well as streamlining risk management procedures. In the study, compliance, digital transformation, and resilience of the organization are evaluated based on evidence that is articulated in 16 academic and professional resources and incorporates journal articles, reports, and case studies. Increased importance of regulatory technology (RegTech), automation, and data analytics may be proved by practical real-life examples of the most notable institutions, which are committed to enhancing the efficiency of compliance and mitigation of operational risks. The practices of governance revealed in the discussion as the change of regulations which must have been put in place in case of the necessity of the change to be brought in line with long-term strategic priorities and cultural and accountability changes which need to be effected in order to be able to sustain the very act of adaptation. A summary of the trends in RegTech investment and compliance expenditure in supporting graphs across the globe also suggests the growth on the application of technology-driven solutions in the industry. The findings are that there is a balance between governance and innovation, based on which investment banks will be able to meet the requirements of regulatory requirements and transform them into strategic competitive advantage.