{"id":11544,"date":"2024-07-31T11:18:42","date_gmt":"2024-07-31T09:18:42","guid":{"rendered":"https:\/\/www.uni.lu\/snt-en\/?post_type=news&#038;p=11544"},"modified":"2025-10-28T16:57:29","modified_gmt":"2025-10-28T15:57:29","slug":"automating-financial-regulatory-processes-with-software-engineering","status":"publish","type":"news","link":"https:\/\/www.uni.lu\/snt-en\/news\/automating-financial-regulatory-processes-with-software-engineering\/","title":{"rendered":"Automating financial regulatory processes with software engineering"},"content":{"rendered":"\n<section class=\"wp-block-unilux-blocks-free-section section\"><div class=\"container xl:max-w-screen-xl\">\n<p>In Luxembourg, financial services accounts for <a href=\"https:\/\/www.luxembourgforfinance.com\/wp-content\/uploads\/2020\/01\/LFF_AMBITIONS_2025.pdf\">31% of the national GDP<\/a> \u2013 translating to around \u20ac16.4 billion. As the largest single sector within the economy, it\u2019s a significant industry that\u2019s undergoing an all-encompassing digital transformation. In today\u2019s age, new technologies are continually emerging and evolving, which changes not only customer expectations, but also the regulatory demands on financial institutions. Support in the way of research expertise can help the financial sector to adapt to this new technological landscape.<\/p>\n\n\n\n<p>It&#8217;s this idea that has led to the development of the National Centre of Excellence in Research in FinTech (NCER-FinTech), <a href=\"https:\/\/www.uni.lu\/en\/news\/launch-of-the-national-centre-of-excellence-in-financial-technologies\/\">established in 2023<\/a> between the University of Luxembourg\u2019s Interdisciplinary Centre for Security, Reliability and Trust (SnT) and the <a href=\"https:\/\/www.uni.lu\/fdef-en\/\">Faculty of Law, Economics and Finance<\/a> (FDEF). Awarded by <a href=\"https:\/\/www.fnr.lu\/\">Luxembourg\u2019s National Research Fund<\/a> (FNR), it has the ambition to bring world class education and research to Luxembourg\u2019s FinTech institutions.<\/p>\n\n\n\n<p>Within the framework of the NCER-FinTech, the <a href=\"https:\/\/www.uni.lu\/snt-en\/research-groups\/SVV\/\">Software Verification and Validation<\/a> (SVV) research group at SnT, headed by <a href=\"https:\/\/www.uni.lu\/snt-en\/people\/domenico-bianculli\/\">Prof. Domenico Bianculli<\/a>, is exploring the synergistic application of innovative software engineering techniques and AI-based tools to ease compliance with financial regulations. The projects, named AFRICA, ICCOFIDO and RUMOFA, combine the software engineering expertise of SVV with the legal and financial expertise of the FDEF. All aim to streamline regulatory processes, as these financial challenges are persistent, with little existing research into the problem.<\/p>\n\n\n\n<p>Within the AFRICA project, which stands for Automated Financial Regulations Change Impact Analysis, the group is aiming to detect changes in financial regulations, and semi-automatically analyse the impact of those changes on the compliance of software used by financial institutions. \u201cIt is vital that financial information systems are kept compliant with changing regulations, so the impact of an automated tool that could inform institutions on the impact of regulatory changes could be transformative within the industry,\u201d explains Prof. Bianculli, professor of software engineering and principal investigator on all three of the projects. \u201cThe subsequent impact analysis that we are aiming to automate could then provide users with recommendations on how to remain compliant, as well as assess the impact of the introduced, amended or repealed regulations on their IT operations.\u201d The team working on the project also comprises <a href=\"https:\/\/www.uni.lu\/snt-en\/people\/sallam-abualhaija\/\">Dr. Sallam Abualhaija<\/a>, <a href=\"https:\/\/www.uni.lu\/snt-en\/people\/marcello-ceci\/\">Dr. Marcello Ceci<\/a> and <a href=\"https:\/\/www.uni.lu\/snt-en\/people\/nicolas-sannier\/\">Dr. Nicolas Sannier<\/a> from the SVV group. On FDEF\u2019s side, <a href=\"https:\/\/www.uni.lu\/fdef-en\/people\/dirk-andreas-zetzsche\/\">Prof. Dirk Zetzsche<\/a>, professor in financial law and ADA Chair in Financial Law and Inclusive Finance, serves as co-principal investigator of both the NCER-FinTech and the AFRICA project. He works alongside <a href=\"https:\/\/www.uni.lu\/fdef-en\/people\/marco-bodellini\/\">Dr. Marco Bodellini<\/a> to assist the SVV group in classifying the regulatory changes when they occur.<\/p>\n\n\n\n<p>Along a similar vein, ICCOFIDO \u2013 or Incremental Compliance Checking of Financial Documents \u2013 is exploring just that. An accelerated method of checking the compliance of financial documents that fall under regulatory supervision. Regulators require funds to produce and amend documents with specific content; while some of these are short, many others can be up to 100 pages in length. \u201cICCOFIDO aims to detect changes within the various versions of a document, using the initial approved version as a baseline. This process will then determine where the compliance checking process should focus,\u201d Prof. Bianculli explains. This type of software automation could save hundreds of hours in regulators\u2019 time, by speeding up and streamlining what is currently a cumbersome process. The SVV group is assisted here by the FDEF\u2019s <a href=\"https:\/\/www.uni.lu\/fdef-en\/people\/stanislaw-tosza\/\">Prof. Stanislaw Tosza<\/a>, professor in compliance and law enforcement, as well as <a href=\"https:\/\/www.uni.lu\/fdef-en\/people\/salome-lannier\/\">Dr. Salom\u00e9 Lannier<\/a>, <a href=\"https:\/\/www.uni.lu\/fdef-en\/people\/olivier-voordeckers\/\">Dr. Olivier Voordeckers<\/a> and <a href=\"https:\/\/www.uni.lu\/fdef-en\/people\/martina-siclari\/\">Martina Siclari<\/a>. The FDEF team contributes to the project by characterising, from a legal standpoint, the impact of changes on compliance rules and the dependencies among rules.<\/p>\n\n\n\n<p>The final project they are leading is entitled RUMOFA, which stands for Runtime Monitoring of Financial Activities. \u201cWhen a fund is operational, it will perform some transactions, for example buying and selling of shares in a predefined market,\u201d describes Prof. Bianculli. \u201cThe behaviour of the fund, as observable through these transactions, must be compliant with regulations,\u201d he continues. As part of this project, the SVV group are working on an automated approach that, after extracting information from regulations and documents and converting it into compliance requirements, would be capable of using such requirements to automatically verify whether transaction records comply with them. Leveraging a variety of software engineering techniques and AI-based tools, the team will be able to accurately identify the various types of metadata pertaining to compliance requirements and to automatically generate scalable monitors for efficiently verifying if transactions meet regulatory requirements. On FDEF\u2019s side, they are supported in this project by <a href=\"https:\/\/www.uni.lu\/fdef-en\/people\/michael-halling\/\">Prof. Michael Halling<\/a>, Professor for the Chair in Sustainable Finance, who serves as co-principal investigator of the NCER-FinTech as well as the RUMOFA project. The FDEF team brings here its expertise in finance to build a model that describes in a comprehensive manner the information types that are vital for compliance of fund activities.<\/p>\n\n\n\n<p>Between the three projects, there are overlaps and connections, but they were designed independently as ways that financial processes can be streamlined through the implementation of world-class software engineering research. Under its belt, the NCER-FinTech has many projects just like these that are working towards an end goal of strengthening Luxembourg\u2019s position as an innovative financial hub.<\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":67,"featured_media":11485,"template":"","format":"standard","meta":{"featured_image_focal_point":{"x":0.38,"y":0.49},"show_featured_caption":false,"ulux_newsletter_groups":"","uluxPostTitle":"","uluxPrePostTitle":"","_trash_the_other_posts":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false},"news-category":[4],"news-topic":[10,14],"organisation":[101,184,354,198],"authorship":[67],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.3 (Yoast SEO v22.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Automating financial regulatory processes with software engineering - SnT news I University of Luxembourg<\/title>\n<meta name=\"description\" content=\"In Luxembourg, financial services accounts for 31% of the national GDP \u2013 translating to around \u20ac16.4 billion. As the largest single sector within the\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.uni.lu\/snt-en\/news\/automating-financial-regulatory-processes-with-software-engineering\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Automating financial regulatory processes with software engineering\" \/>\n<meta property=\"og:description\" content=\"In Luxembourg, financial services accounts for 31% of the national GDP \u2013 translating to around \u20ac16.4 billion. 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