RegTech Pioneering in India: Insights into Current Landscapes & Growth Opportunities
By Mr. Krupesh Bhat
RegTech, short for Regulatory Technology, is proving to be a game-changer in India’s business landscape by rapidly reshaping how industries manage compliance, risk, and governance.
An innovative convergence of technology and regulation, RegTech is making waves in India, providing tech-driven solutions that optimize compliance procedures. Regulation technology is developing as a vital enabler, automating operations, improving accuracy, and ensuring conformity to rules.
RegTech is helping simplify complex regulatory landscapes across many industry sectors and jurisdictions worldwide and is gaining momentum as a game-changer in India’s business environment.
RegTech is being adopted by many industries, including finance, healthcare, real estate, telecommunications, and more. These aim to automate routine operations, ensure accuracy in reporting, and further enhance risk management.
Key Compliance Trends and Developments
RegTech is redefining how organizations perceive compliance. By adopting the technology, businesses can perform operations like identity verification, risk assessment, and transaction monitoring more efficiently.
A proactive risk management approach is essential for any business, and RegTech transforms how they handle compliance procedures. Regulation technology harnesses the power of Artificial Intelligence, Data Analytics, and Machine Learning to identify potential risks while enabling seamless compliance management.
The financial services sector has been among the pioneers in using RegTech solutions in India. RegTech solutions are developed to align with the requirements and guidelines of the regulatory authorities such as the RBI, SEBI, and IRDAI. These technologies are being adopted by banking, insurance, and investment companies to manage Know Your Customer (KYC) regulations, prevent money laundering, and streamline reporting.
The global RegTech market has exhibited remarkable growth, reaching a valuation of USD 7.6 Billion in 2021, and is projected to maintain a Compound Annual Growth Rate (CAGR) of 20.8% from 2021 to 2026. The forecasted surge in the Asia-Pacific (APAC) region is particularly noteworthy. It is expected to experience a high CAGR during this period.
Among the countries within the APAC region, India stands out. Numerous research studies highlight India’s significant growth potential in the RegTech industry in future. India plays a vital role in influencing the changing RegTech landscape as the sector gains momentum.
Automating regulation compliance saves businesses time, enhances efficiency, and reduces the effort required to interpret and apply regulations manually. With effective compliance procedures, companies can spend more time understanding what their customers want and provide personalized solutions, fostering loyalty and trust.
Moreover, accurate interpretation of regulations and streamlined compliance processes reduce the risk of legal and financial repercussions due to non-compliance, thus helping organizations avoid fines, reputational damage, and legal disputes.
Future Trajectories: Envisioning RegTech’s Journey in India
RegTech solutions are gaining traction as India’s digital transformation picks up pace. The technology will enhance business risk assessment and compliance accuracy and provide actionable insights for strategic decision-making insights for strategic decision-making.
Beyond finance, RegTech will extend its influence across industries like healthcare, e-commerce, and logistics. RegTech will offer customized solutions to address sector-specific compliance challenges, enabling large-scale technology adoption across different sectors.
The growth of RegTech has encouraged partnerships between agile RegTech startups and established financial institutions. These collaborations produce novel innovations that accelerate the digitization of compliance processes and enhance the consumer experience.
RegTech in India: A Promising Future Lies Ahead
RegTech equips businesses to efficiently address these complexities as regulatory landscapes become more intricate. It empowers enterprises to make informed decisions that align with evolving regulations while boosting customer experience.
Using Natural Language Processing (NLP), low-code and no-code solutions, blockchain, APIs, and other technologies, is a vital component of automated RegTech. This reduces the risk of non-compliance and the accompanying penalties and frees up resources that may be used to support innovation and strategic growth.
Implementing RegTech into the compliance process allows businesses to gain competitive advantage, paving the way for innovative product development and faster launches.
RegTech helps organizations operate more efficiently, lower the compliance risks, and be more agile, which ultimately contributes to their success and growth in a regulatory environment that is continually changing.
(The author is Mr.Krupesh Bhat – Founder, SignDesk, and the views expressed in this article are his own)
