A National Model to Supervise on Virtual Banking Systems through the Bank 2.0 Approach

Abstract

Banks and financial institutions in the modern business world play a crucial role in business dynamics. On the other hand, progress in Information Technology has brought significant changes which resulted in emergence of new type of banking called virtual banking. Virtual banking is based on computer software and systems that require minimum manpower, yet lack of required infrastructures for implementation of such banks throughout a country or region has brought twofold challenges. One is lack of focus of current models on virtual banking and the other is lack of integrated approach for governance, risk and compliance in current models. This paper firstly introduces a specific domain of virtual bank and defines top-level concepts for definition of governance, risk and compliance and finally proposes a model for developing a system that could facilitate virtual bank supervisory. Then necessary Evaluations are conducted for the model via qualitative Evaluation and capability model of Open Compliance and Ethics Group (OCEG). In the final sections, we conclude that the model is comprehensive and acceptable and some ideas for future research are discussed.