Enhancing banking performance through regulatory technology: Analyzing cost reduction, sustainability, and profitability in Bangladesh's banking sector
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Issued Date
2025-12-01
Resource Type
ISSN
26661888
Scopus ID
2-s2.0-105014640258
Journal Title
Sustainable Futures
Volume
10
Rights Holder(s)
SCOPUS
Bibliographic Citation
Sustainable Futures Vol.10 (2025)
Suggested Citation
Mamun M.A.A., Dhar B.K., Islam H., Rana M., Saha S., Biswas A.K., Karim R. Enhancing banking performance through regulatory technology: Analyzing cost reduction, sustainability, and profitability in Bangladesh's banking sector. Sustainable Futures Vol.10 (2025). doi:10.1016/j.sftr.2025.101234 Retrieved from: https://repository.li.mahidol.ac.th/handle/123456789/111960
Title
Enhancing banking performance through regulatory technology: Analyzing cost reduction, sustainability, and profitability in Bangladesh's banking sector
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Corresponding Author(s)
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Abstract
This study investigates the impact of Regulatory Technology (RegTech) adoption on cost reduction, sustainability, and profitability in the Bangladeshi banking sector. Using Structural Equation Modeling (SEM), the research analyzes the relationships between various RegTech components—such as RegTech for Anti-Money Laundering (RAML), Regulatory Reporting (RR), Compliance (COMP), Transaction Monitoring (TM), and Risk Management (RM)—and key banking performance metrics, including cost reduction (CR), sustainability (SUS), and profitability (PROFIT). The findings reveal significant direct effects of COMP, TM, and RM on CR, as well as notable influences of RAML, TM, and RM on SUS, underscoring their pivotal roles in enhancing operational efficiency. Additionally, indirect effects mediated by CR and SUS on PROFIT were observed, with RM and RAML demonstrating the strongest positive influence. A positive relationship was also found when SUS mediated the effects of TM and RM on PROFIT. This study contributes to the growing body of literature on RegTech by providing empirical evidence of its impact in an emerging market context—specifically, Bangladesh. It highlights how RegTech can optimize compliance processes, promote operational sustainability, and enhance financial performance, offering valuable insights for policymakers and banking institutions in developing economies seeking to leverage technology for regulatory compliance and efficiency.