DATA SECURITY AND PRIVACY IN PHYGITAL DEBT COLLECTION: ENSURING COMPLIANCE AND TRUST
By Yatin Pednekar, Co-founder & CTO, Mobicule Technologies Pvt. Ltd
In this complex world of debt resolution, one of the leading concerns for Banks and NBFC is keeping up with the intricate regulatory and compliance involved with Debt Resolution. The ever-evolving regulation landscape in India makes it challenging for Banks and NBFCs to adhere to these regulations when it is constantly evolving.
Given the sensitivity of financial and personal information involved, a steadfast commitment to data protection is imperative. Maintaining compliance with regulatory requirements and ensuring data security throughout the process can be challenging, leading to operational inefficiencies and rising expenses.
Regulations and compliances related to Debt Resolution in India ensure the well-being of customers and make sure fair practices in Debt Resolution. Navigating these regulations and compliance is a complex process and often Banks and NBFCs end up getting stuck in this maze. Maintaining regulation and compliance is not just a legal obligation but a necessary part of the business process.
Most of the problems banks and NBFCs face are regarding implementing streamlined systems that allow for seamless adherence. Understanding these regulatory compliances is crucial in making sure that the borrower’s data is being protected. RBI has laid out guidelines which are known as the fair practices codes for lenders that dictate how banks and financial institutions interact with their borrowers including methods and timing.
Borrowers are increasingly concerned about how their data is used and shared. Organizations must address these concerns transparently to build trust and avoid reputational damage. The Information Technology Act plays a crucial role in ensuring data security and data privacy which is a crucial aspect of debt resolution.
When failing to adhere to these regulations and compliances, the institution may face serious repercussions and may lead to significant legal and financial consequences. Historically, there have been Banks and NBFCs that failed to adhere to legal compliance and faced heavy penal charges which not only led to heavy financial losses but also tarnished their brand’s image as well.
Maintaining the accuracy and integrity of data across physical and digital platforms is challenging. Discrepancies can lead to incorrect debt collection practices, legal issues, and damage to the organization’s reputation.
Latest innovations and developments in the fintech landscape, institutions are now disbursing loans easily and these bodies gained the authority to access data to verify potential borrowers. Platforms can ensure the security of stored data by utilizing data encryption and implementing access control mechanisms on all data storage devices and software.
Institutions managing sensitive data must take comprehensive precautions against viruses and data corruption threats. A widely adopted method to enhance data security is the implementation and enforcement of a layered security architecture.
With the help of robust technologies, mCollect automates a lot of compliance tasks, also aids in monitoring any fraudulent activities within the system, and ensures that Banks and NBFCs adhere to the latest regulatory mandates.
mCollect’s state-of-the-art contact center’s agents/executives are thoroughly trained on the regulatory compliances that guide them to interact with borrowers in well well-behaved manner and use empathy to enhance the resolution rates for Banks and NBFCs.
AI and ML are instrumental in analyzing vast amounts of data to identify patterns, anomalies, and potential compliance risks. These technologies can enhance risk management and fraud detection capabilities.
Cloud computing provides scalable and flexible infrastructure for banks, enabling them to manage large volumes of data efficiently and securely. Cloud services often include built-in compliance features and regular updates to meet evolving regulatory standards.
(Yatin Pednekar, the Co-Founder and CTO at Mobicule Technologies, embarked on his entrepreneurial journey 15 years ago alongside Siddharth Agarwal. Before this endeavor, Yatin gained valuable experience through roles at companies such as Oregono Technologies, Smart Stream Technologies, and TATA Interactive Services. He earned his Bachelor of Engineering in Electronics and Communication from V.E.S.I.T College in Mumbai. Yatin’s fervor for technology is matched only by his love for cricket, showcasing a multifaceted personality dedicated to both innovation and leisure pursuits, and the views expressed in this article are his own.)
(Mobicule is a pioneer in products focused on mobile field force and has successfully deployed and managed some of the largest mobile field force implementations across Sales & Distribution, Telecom, and BFSI. With its experience and domain knowledge now spanning 2 decades it has established its niche in Debt Collection, KPI & Gamification, and Digital KYC integrated end to end with internal (core banking, EPR, CRM) and external systems (credit bureaus, govt portals). Backed by a strong R&D and adopting the latest and upcoming technologies it has managed to establish a niche market position. Mobicule’s steadfast vision and commitment to add value to its customers, employees, and all its stakeholders have put it on a rapid growth path to attain a leadership position in the business domains it caters to.)
