Top 10 Best Regtech Companies in India 2022

If the devastating financial crash of 2008 had a silver lining, it might be the introduction of governmental technology, or Regtech, to more forcefully rein in an out-of-control industry. Hybrid fintech/Regtech firms occur from the ashes like a phoenix from the ashes to address difficulties that arise in a tech-first economy. The fintech industry’s demand for regulated technology is so strong that Regtech is expected to grow to a $120 billion market by 2020.

The Financial Industry Regulatory Authority (FINRA) noted in a recent report praising the power of Regtech (especially in the investment management industry) that Regtech tools — such as those that help uphold up-to-date records and facilitate accurate economic deals — “have the potential to greatly transform how securities industry participants perform with there compliance obligations.” Here are 12 companies that are assisting in the unlocking of Regtech opportunities.

The financial services industry will be transformed by regulatory technology, or Regtech. Technologies that aid regulatory compliance includes cloud computing, artificial intelligence, blockchains, and big data. Fintech is frequently thought of as a subset of regulatory technology that helps businesses decrease risk by ensuring regulatory compliance. The use of technology to monitor business processes allows companies to generate accurate and timely data that can be utilized to make decisions.

Companies can achieve risk-free compliance by combining biometrics and machine learning into Reg-tech startups. All startup products have one thing in common: they are well-designed and help businesses solve challenges. It’s important keeping an eye out for some of them because they’ll turn into unicorns someday.

1. Elliptic

Elliptic employs blockchain technology to make virtual currencies more transparent, as well as ledger technology, which helps keep crypto trading firms up to date on all AML rules. In addition, the company uses big data using blockchain to examine suspected crypto payments and reports its findings to banks and other authorities that address variety of crimes.

Elliptic has discovered a fake Bitcoin trading enterprise run by a group of Russian hackers, which has impacted the industry. U.S. Special Counsel Robert Mueller utilized information from the billion-dollar money laundering scam to probe Russian meddling in the 2016 presidential election and indict the organization on fraud and conspiracy charges.

2. IdentityMind

IdentityMind is a SaaS platform that develops and maintains regulatory technology for ICOs, cryptocurrency trading platforms, and fintech firms. Fintech compliance platforms that screen customers and monitor transactions, as well as fraud protection solutions that digitally analyze each transaction to spot any fraudulent outliers, are among the services offered by the company.

Industry Impact: IdentityMind worked with blockchain security and forensics firm Cipher Trace to help businesses assess risk while taking cryptocurrency as payment, including virtual currency exchanges, hedge funds, and fintech firms.

3. Ayasdi

Ayasdi developed a set of AI-powered solutions to combat fraud, manage risk, and detect money laundering schemes. The AML technology from Ayasadi is used by financial institutions to track payments and identify outliers that could indicate fraudulent activity. Furthermore, the platform can create laws and regulations specific to a company’s actual position in order to ensure that institutions remain compliant.

Industry Impact: In 2018, Ayasdi was recognized to RiskTech100. It also took first place in the Regtech category of the Medici Top 21.

4. Trunomi

Trunomi is a consumer consent and rights management platform that uses Regtech. It ensures that customers in the financial sector sign consent form allowing financial firms to use and share their information. Clients and banks can readily trace financial information as a result, ensuring that banks do not abuse their sharing powers and that customers do not engage in fraudulent activities.

Trunomi has been chosen as one of the RegTech100 firms for 2019. The top companies on the list are those that are rapidly expanding and have a big impact on the regulatory technology industry.

 

5. Continuity

It employs Regtech in the following ways: For fintech companies and banks, Continuity is an on-demand platform for policy administration and an auditing program. Compliance technologies from the organization automate the regulatory lifecycle, from managing new legislation to estimating risk and designing compliance strategies.

Industry Impact: Continuity says that their product may lower compliance costs by more than half and reduce time spent deciphering financial regulations by 70%.

6. Forter

It employs Regtech in the following ways: Forter’s Decision-as-a-Service. For the retail and banking industries, service technology is a personalized and automated decision-maker. In less than a second, the automatic ‘Decisioning’ system detects trends and alerts fraudulent expenditure. To give organizations a more holistic perspective of their income, Forter’s technology processes payments and marks them as accepted or warned for fraud.

Industry Impact: Forter’s Decision-as-a-Service technology has been used by Nordstrom, Priceline, Mattress Firm, and Delivery.com to automate their fraud monitoring procedures.

7. ComplyAdvantage

ComplyAdvantage is an AI-driven risk analysis database for businesses that could be harmed by financial crime. The firm’s own Anti-Money Laundering (AML) data stream develops profiles, automates customer monitoring with KYC and due diligence tools, and screens payments in live time. More than 350 organizations in the money-transfer industry, including payments, stock trading, and even gaming, use the ComplyAdvantage platform.

Industry Impact: The company’s anti-money laundering database can scan five million new articles from 200 countries in a 24-hour period and update 30,000 KYC profiles. CB Insights’ 2018 Fintech 250 list included the company.

8. Chainalysis

Chainalysis use blockchain technology to combat money laundering, fraud, and compliance issues in the cryptocurrency industry. Financial institutions and crypto trading platforms can use the ledger-backed software to help with Know Your Customer (KYC) and identity verification. In addition, the firm collaborates with global banks and governments to detect and respond to illicit activities.

Industry Impact: Awesome person has teamed up with a slew of digital payment providers, including Nets, to assist banks in validating Bitcoin transactions and adhering to federal rules.

9. BehavioSec

BehavioSec employs behavioural biometrics tools to predict and avoid problems associated with digital fraud. Continuous digital authentications at the organization ensure that fraudulent practices, such as account takeover, malware, and compliance violations, are detected before they become severe problems.

Industry Impact: BehavioSec Behavioral Biometrics Platform has been awarded three additional patents. All of the measures operate together to prevent account takeover and fraud involving stolen passwords and other personally identifiable information.

10. Ascent RegTech

Ascent’s platform is designed around “channels” that are drawn from individual regulatory bodies, which is how it uses Regtech. The company’s platform use artificial intelligence to locate and save all applicable laws and regulations that affect a business in real time. As a result, Ascent users can utilize their personalized platform to find papers and laws (from a variety of regulatory bodies) that aid in financial compliance.

Ascent just raised $6 million in Series A funding to expand its workforce and develop its AI Regtech platform.

What is RegTech?

Any technology that supports firms in achieving regulatory compliance duties is referred to as regulation technology. Artificial intelligence (AI) and machine learning (ML) can help compliance departments automate mundane operations.
As a result, they can keep up with regulators’ ever-changing criteria while also reducing the time and costs associated with operational risk and compliance.

What Is RegTech in Banking?

Since 2008, the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have expanded their regulatory compliance requirements by 500%, and banks may employ RegTech software-as-a-service (SaaS) to help them comply (FINRA). RegTech can help with anti-money laundering (AML) duties and Know-Your-Customer (KYC) rules. RegTech companies can employ AI and machine learning to authenticate consumers’ identities and detect potential fraud.

Industries and applications of RegTech

Regulation technologies go beyond assisting financial services firms in meeting regulatory requirements. Compliance solutions for regulation technologies are also applied in a variety of other fields:

1. Legislation, oversight, and government are all aspects of the legislative process (SupTech)
2. Healthcare
3. Environment, health, safety, and quality assurance
4. Risk management for vendors
5. Identification and background checks
6. Information security and cybersecurity
7. Cannabis
8. General compliance management

How RegTech Works

RegTech automates time-consuming operations such as real-time monitoring of transactions, risk, and regulatory changes, reporting, and displaying potential fraud alerts to compliance employees.
Compliance staff gain from automation because it allows them to focus on higher-value tasks. Furthermore, it allows the company to remain compliant with regulatory regulations, resulting in increased efficiency and effectiveness.

Many of the same technologies are used by RegTech and FinTech:
1. AI stands for artificial intelligence (AI)
2. The user interface of an application program (API)
3. Analytics and big data
4. Cloud computing on the blockchain
5. Computer-assisted learning (ML)
6. Robotics
7. Contracts that are smart
8. Recognition of speech and text

RegTech compliance solutions provide various functions in addition to regulatory reporting, risk management, regulatory monitoring, identity management and control, compliance, and transaction monitoring.

How Do FinTech and RegTech Differ?

FinTech (financial technology) and RegTech (regulatory technology) are two distinct but connected fields. FinTech is present every time you make a payment or use an app to make a purchase, with the Bitcoin blockchain being the most well-known example.

FinTech’s digital transformation of the financial services business has resulted in new and more substantial hazards. As a result, RegTech is frequently regarded as a subcategory of (or even a reaction to) FinTech.

They argue that RegTech was born as a result of this shift. According to the Identity Theft Report Center (ITRC), data breaches in the financial services industry reported 1,244 breaches and over 446 million records in 2018.

RegTech and its importance in modern times

RegTech has become one of the trendiest subjects in the business sector in recent years. As a sub-industry of Fintech, RegTech is becoming a mainstream business with billions of dollars in funding. Financial institutions are working hard to guarantee that new and existing laws are followed in order for the market to develop and grow. According to estimates, the global RegTech market will be worth more than $20 billion by 2027.

Many reasons have contributed to the growth of RegTech in recent years, including:
1. Regulations have become more stringent.
2. Regulatory fines are escalating, as is the expense of compliance.
Following COVID-19, there was an increase in the usage of technology.
1. RegTech companies will receive more funding.
2. RegTech firms provide unrivalled data analytics.

The COVID age is defined by technology that make workflows safer, faster, and more efficient. Institutions are likely to boost their spending on RegTech solutions as a result of the shift in the working environment.

• Evolution of Regulatory Environment- 

In response to the disruptions caused by technology improvements, regulatory agencies modified their financial sector control requirements following the financial crisis of 2008. As a result, financial institutions have been burdened with a slew of costly and time-consuming laws to adhere to, resulting in punitive actions such as steep fines. Several organizations have created services and solutions to assist financial institutions in properly managing regulatory compliance obligations and lowering the ever-increasing cost of compliance. These tech businesses will make regulatory compliance more efficient and cost-effective.

• The current State of RegTech

Due to the increased use of digital technology in banking and financial services, a number of issues have arisen. Fraud, money laundering, data breaches, and cyber-hacking have all become more common in recent years. RegTech businesses have shown that utilizing Big Data and machine learning technologies, they can detect illegal activity more efficiently than conventional systems. Regtech businesses have gone out of the lab and are now using their solutions in operational contexts.

Regtech businesses are increasingly engaging with financial institutions and regulatory agencies, assisting the industry by pushing financial institutions to adopt and test innovative technologies. Many RegTech firms have used cloud computing to cut installation costs while also allowing them to safely and swiftly share data. RegTech companies are actively active in a range of financial and regulatory sectors. Employee surveillance, compliance management, anti-fraud, and anti-money laundering are just a few of the operations that their systems can automate.

• Changing Nature of Regulatory Standards

Several directives have been adopted by financial authorities across the world to decrease risk and promote transparency. The sheer number of new requirements made it difficult for financial firms to comply. Compliance has become costly for businesses as they transform monitoring and gathering systems and reporting functions to meet with the new regulations.
On the other side, a modern RegTech solution combats the sense of helplessness that comes with regulatory changes. RegTech companies make compliance easier for institutions by providing cutting-edge technologies. Insights that assist firms make faster decisions are also beneficial.

Benefits of Employing RegTech Firms

For industries with strong regulatory requirements, such as banking and financial services, regulatory compliance obligations are increasing all the time. These industries can employ modern technology like artificial intelligence (AI) and machine learning to tackle regulatory compliance difficulties.
Using these technology, regulatory compliance processes can be made more efficient and effective. Here are some of the possible advantages of RegTech solutions for financial organizations.

RegTech solutions can assist organizations organize and disconnect complicated and interrelated data sets using ETL (Extract, Transfer, Load) technology, allowing them to fully utilize the data they have.

RegTech systems can swiftly provide reports in addition to monitoring and analyzing a huge volume of data. Workflow automation can help you save time and money.

Integration: Within a short period of time, the solution will be implemented and operational. RegTech solutions can interact with existing solutions and produce results rapidly thanks to APIs and cloud-based models.

RegTech unleashes the actual potential of existing and big data sets by using analytics technologies. A RegTech system can give actionable information and promote speedier decision-making thanks to its sophisticated analytics.

Financial crime detection and prevention, cybercrime detection, compliance activity tracking and recording, centralized regulatory document submission, and market review workflow optimization are all possible with regulation technology solutions. As a result, compliance departments can improve operational efficiency, lower operating expenses, prevent regulatory violations, and raise their return on investment.

• Problems and Solutions in RegTech

Regulatory compliance technology is utilized for more than only meeting KYC and AML financial regulation standards faster and cheaper. Since 2014, the market has grown significantly: currently, more than 400 firms offer a variety of compliance solutions that can help businesses save money. Regulatory reporting, risk management, identity management, compliance management, and transaction monitoring are all areas where regtech is often employed.

• Regulatory Compliance

The entire communications compliance lifecycle, for example, is automated and coordinated by a communications compliance platform. Artificial intelligence-based compliance platforms can assist firms in addressing important concerns in the financial compliance area, such as market manipulation, record-keeping, e-commerce monitoring, and comprehensive investigations.

• Regulatory Reporting

Using big data analytics, real-time reporting, and the cloud, the cloud can automate the distribution of regulatory data. Banking, brokerage, and insurance firms, for example, can receive real-time warnings when regulatory reporting requirements change, allowing them to meet their obligations and remain compliant. These kind of solutions can help you save time and money when it comes to meeting your regulatory responsibilities.

• Risk Management

RegTech solutions use big data and analytics, as well as speech and text recognition, to supplement incoming risk data with regulatory risk analytics and intelligence.
Using peer analysis and workflow tools that allow them to visualize, organize, and prioritize monitoring and compliance actions, monitoring and compliance teams may swiftly assess an organization’s regulatory risk. With the help of technology, regulatory processes can be streamlined and made more efficient.

Conclusion

Finally, banks and other financial institutions must remember that digitizing their risk and compliance management processes was the previous significant step, and that implementing apps will be the next. According to our literature review, is now being considered mostly within financial organizations. Organizations appear to be concentrating their efforts mostly on regulating procedures, assessing, and alerting related with the content of the many recommendations that seem to stream in on them at the moment.

Researchers use artificial intelligence technology rather than applying artificial intelligence directly to natural language processing. Because both themes (control and content warnings) are needed in other subject areas, will be extended to medicine and other industries in the future, both in practice and in the scientific literature.

 

Article Proofread & Published by Gauri Malhotra.