Artificial Intelligence in RegTech to Predict Financial Market Trends

In the last few decades, technology has undergone drastic amelioration which shows the intersection of technologies in almost every human activity in daily life. The technologies proliferate the efficiency and effectiveness of those activities by leaps and bounds. The financial market has complex structuring and is closely interrelated which has to be regulated with utmost due care. RegTech is the subset of Fintech that deals with the regulation of the financial market with the use of technologies like Machine Learning, Artificial Neural Networks, Blockchain, IoT, and AI. This is a review study conducted to analyses the gaps in previous research on the subject matter of the evolution of RegTech and the use of AI to further streamline the journey of RegTech. This paper has evaluated the advantages of the utilization of AI for early risk warnings, customer experience enhancement, cost efficiency, detection of cybercrimes, automatic monitoring of real-time data, cross-border evaluation of Big Data, and virtual banking. Towards the end of this paper, this research tends to provide the limitations of the existing technologies and suggests necessary changes to liberate them.