Big Data Applications in Financial Regulation: Compliance, Risk Monitoring and Transparency Enhancement

Abstract

This paper discusses the application of big data technology in financial regulation, especially its important role in compliance, risk monitoring and transparency improvement. With the rapid development and digital transformation of the financial industry, the amount of data generated by financial institutions has increased dramatically, and big data technology has become a key tool for improving the efficiency and accuracy of financial regulation. By analysing market data, transaction data and customer behaviour data, etc., big data technology can help financial regulators establish risk early warning models, identify and deal with possible risk hazards in a timely manner, and improve the foresight and effectiveness of risk monitoring. At the same time, big data technology can also promote compliance inspection and supervision, and through in-depth analysis of financial institutions' business data and customer data, etc., it can discover possible irregularities or abnormal transactions, and maintain the fairness and order of the financial market. In addition, the application of big data technology also enhances the transparency of financial supervision, making the operation of the financial market more open and transparent and helping to enhance market confidence. This paper aims to provide financial regulators with references and guidance on the use of big data technology for regulatory purposes.