FinTech as a Driver of RegTech Efficiency: Evidence from Financial Institutions in India

This‍‌‍‍‌‍‌‍‍‌ study explores the impact of RegTech efficiency on FinTech adoption in Indian private-sector banks, emphasising the mediating roles of Data Quality & Analytics Capability and Organisational Readiness for Compliance. As the regulatory requirements become more data-driven and technology-intensive, financial institutions have to embed sophisticated digital solutions to keep the compliance functions up to standard. The study based on 530 respondents, including managers, compliance officers, IT specialists and data governance professionals from private sector banks, uses Partial Least Squares Structural Equation Modelling to evaluate the proposed relationships. The results show that FinTech adoption positively and significantly impacts RegTech efficiency. Data quality and analytics capability are identified as significant mediators, signifying that enhanced data systems lead to greater accuracy and timeliness in compliance activities. Organisational readiness for compliance is also a mediator in the relationship, thus, it points to the importance of internal structures, governance and skills in utilising technology for regulatory purposes.  At the core, this research helps to understand the integration of FinTech and RegTech, in addition, it points to the realistic ways of enhancing the regulatory performance in the tech-driven financial environment.