Financial Value through ESG Compliance: Unpacking the RegTech Advantage in the Finance Sector

Authors

  • Wafa OULAD BENAISSA National School of Business and Management of Casablanca, Hassan II University of Casablanca, Morocco
  • Smail MAHJOUBI National School of Business and Management of Casablanca, Hassan II University of Casablanca, Morocco
  • Fatine OUAHTITA National School of Business and Management of Casablanca, Hassan II University of Casablanca, Morocco
  • Smail KABBAJ National School of Business and Management of Casablanca, Hassan II University of Casablanca, Morocco

Keywords:

RegTech, sustainable finance, ESG compliance, digitalization, financial regulations

Abstract

This study explores the impact of Regulatory Technology (RegTech) adoption on ESG compliance and financial performance within financial institutions, in the context of growing regulatory demands for standardized sustainability reporting.

Using a panel dataset of 250 firms from 2018 to 2025, the research employs a difference-in-differences (DiD) approach and panel regression models to assess how digital compliance tools, such as AI-powered analytics and blockchain-based reporting systems, enhance regulatory adherence. The results show that RegTech adoption significantly improves ESG compliance efficiency, increases reporting transparency, and contributes to higher financial performance.

The findings also reveal that firm size moderates these outcomes, with larger institutions experiencing stronger benefits. The study offers actionable insights for financial institutions, policymakers, and RegTech providers seeking to support the sustainability transition through digital innovation and regulatory standardization.

Classification JEL: B41, G32, Q56, O33  

Paper type: Empirical Research    

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Published

2025-08-25

Issue

Vol. 6 No. 8 (2025)

Section

Articles

License

Copyright (c) 2025 Wafa OULAD BENAISSA, Smail MAHJOUBI, Fatine OUAHTITA, Smail KABBAJ

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