Examining the Effectiveness of RegTech Solutions in Strengthening Regulatory Compliance: An Integrative Study of a Private Omani Bank

Abstract

The concept of ‘RegTech’ has emerged to signify the technology that regulated firms are utilizing to increase their focus on risk and compliance. Despite the growing global interest, only few studies have examined the effects and adoption of RegTech, especially within the Omani business landscape. By studying AI-driven RegTech solutions at a private bank in Oman, this live project seeks to fill in research gaps and raise awareness among banks in the country. Between 2024 and 2032, the global RegTech industry is projected to expand at a compound annual growth rate of 23.6%. This research explores the role, impact, challenges, and key factors influencing AIpowered RegTech integration. Employing a mixed-method approach, the study integrates quantitative data from a survey of 105 employees and qualitative insights from interviews with the head of compliance and the head of IT. Data analysis, conducted with Microsoft Excel, JASP 0.18.3, and SmartPLS 4, includes descriptive statistics, t-test, regression, p-value, and ANOVA analyses. Findings indicate a positive relationship between AIdriven RegTech implementation and enhanced regulatory compliance at the private bank, supporting the hypotheses. This study provides valuable insights for Omani banks and serves as a reference for future research on AI and RegTech in the banking sector.