Being the greatest opportunity in FinTech[1], the RegTech ecosystem has grown to meet the demand for effective technological solutions in areas of regulatory reporting, governance, eKYC/AML/CFT, data management, fraud monitoring & control, digital identity, risk management, and more.
A recent study of 38 banks around the world analyzed their third-party RegTech implementations[2] – where the solutions were offered by RegTech startups and large GRC providers – found that RegTech solutions in the space of eKYC/real-time AML screening, AI/ML-based fraud prevention, and real-time compliance monitoring had the highest level of adoption by banks. More than 15 banks had implemented eKYC/advanced AML and sanction screening solutions. Solutions in the space of real-time compliance monitoring and AI/ML-based fraud detection were implemented by eight banks each.
With a promise to deliver a 634% in ROI[3] realizable over a three-year period, end-to-end RegTech implementations are not far in the future, with a large number of banks at the moment using a patching approach with focused solutions[4].
Source: A Tech-Stitch to Compliance – The RegTech Story[5]
As we have looked across case studies in Europe[6], let’s look at some of the interesting examples of how banks are leveraging RegTech solutions in the APAC region.
ICICI Bank, one of India’s large private sector banks with global operations, had a requirement for an end-to-end integrated Enterprise Technology Solution for Risk & Audit Management.
The audit department at ICICI Bank used manual processes and spreadsheets in executing audits and maintaining audit results. Spreadsheets provide flexibility of use but are susceptible to issues relating to security and access making them often highly unreliable
