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How RegTech Solutions Can Transform the Way We Do business?

RegTech, also called as Regulatory Technology is a recent technology in the financial services field. This technology makes the use of IT for enhancing regulatory procedures. RegTech puts a certain amount of significance on regulatory monitoring, compliance, and reporting. So, this way, it benefits the financial industry. The intention of RegTech is enhancing consistency as well as transparency.

Also, it systemizes the regulatory procedures for delivering robust explanations of equivocal regulations. As a result of these actions, it can deliver greater quality levels economical costs. Most of the time, RegTech companies make use of the cloud through SaaS.

What is the Importance of RegTech?

The relationship between technology and complaints is not a new aspect. However, it has become very important due to the great number of regulatory changes that have been rising along with a bigger focus on reporting and data. A report stated that the financial institutions in the USA are spending over 17 billion dollars every year on compliance.

Also, the market for compliance in regulatory software is predicted to trust out to 118 billion USD in 2020. Some key benefits of RegTech are:

  • Minimalists compliance cost
  • Increased growth opportunities and flexibility as a result of RegTech’s efficiency
  • Seamless linking of control and risk frameworks

Top 5 Ways RegTech will Impact the Businesses:

Identity Management

RegTech powered identity management software can be used in order to process the KYC (Know Your Customer). With the integration of data analytics, AI (Artificial Intelligence) and Cloud storage, you can get the data from different sources. This RegTech powered digitalization to KYC process will help to:

  • Detect the ID fraud or data error, and
  • Reduce the cost of operation.

Network Analytics:

It makes use of data for learning more about our customers along with their connections. Nowadays, most of the regulatory issues tend to emerge from behaviors or transactions that prevail undiscovered by risk & control frameworks that are into existence.

Also, network Analytics lets banks for building customer profiles emphasizing risk potential, lifestyle, buying habits, and social liaisons.

Pattern Recognition:

It needs utilizing natural-language management abilities in conjunction with data fetched from facial-recognition and biometric data. It also requires other data like information generated from electronic communications, social media and voice data.

With this information, RegTech can detect the risks that can’t be discovered by having insights on one source of data. What does RegTech require to build a reliable patterns recognition solution? The answer is Data grouping, deployment of real-time, powerful analytics engine, and huge storage space.

Hence, when a solution is built using the above requirements, then hidden risks can be successfully identified. This technology can be used on numerous regulations on market conduct, financial crime, and money laundering, as these regulations need proactive observation.

Machine-Learning and Artificial Intelligence (AI):

Machine-learning & Artificial Intelligence (AI) can help in performing regulatory compliance tasks that include scanning for revised or new regulations and risk reporting. These two factors will share the impact of these changes with stakeholders.

Artificial Intelligence algorithms can be automated to perform such functions, with apt review important decision factors by compliance-process owners.

Virtual-Assistance Robots:

These can accelerate and automate residual risk reduction, risk-identification, and controls monitoring. This is done by making use of systemized, pre-defined, risk management procedures. When the risk-management process is automated, it becomes very easy to handle various regulations across different jurisdictions, which cater to risk profiles alike.

For instance, we can take the MiFID II AND Dodd-Frank Act in Europe and the US respectively. The primary objective of these regulations is covering consumer protection. And that, virtual assistants, can be used for reporting outcomes and monitoring controls against these regulations simultaneously.

By simplifying the regulation & compliance procedures, a lot of companies will start digitizing systems and processes and embracing financial technologies. Hence, this will, in turn, benefit both companies and its clients in the long run.

How Does Blockchain Impact RegTech?

Blockchain, the software of virtual currencies on cryptocurrencies has a major impact on RegTech. A lot of banks are exploring blockchain and crypto initiatives for startups, technology partners, and innovators. The blockchain technology promises to reshape RegTech.

1. Process Digitization

Using the blockchain technology in diverse RegTech-related processes can minimize the dependency on PPS, for back office as well as mid office personnel and departments. By replacing such old-fashioned procedures with digital, verifiable workflows, compliance and regulatory practices would endure a bigger change.

By linking cloud hosting and blockchain technology, funds will start down the track of getting rid of PPS as well as other out-dated processes.

2. Enhanced Security

Since Blockchain is widespread and secure, documents, data, and regulatory processes can be accessed by various people and departments. This paves way for interoperability with no security agitations of other Software-as-a-Service solutions.

Also, documents that need approval by fund and legal administrators can be passed among various departments pretty easily.

3. Internal and External Management

On top of everything, Blockchain guarantees better communication for fund administrators along with limited partners, and facilitation of internal management. Also, this applies to managers of venture capital funds, hedge funds, and private equity firms.

Fund managers can use the Blockchain technology to better transfer funds, communicate, and collaborate with external stakeholders or limited partners. Using Blockchain at funds will be helpful in terms of tracking compensation and performance reviews on a quantitative basis. With so many advantages of Blockchain, it is no wonder that major funds and big banks are utilizing the opportunities.

4. Document Tracking

As documents, processes, and paper are moved to the blockchain, funds can retrieve, track and store key information at a greater level. This can be very useful when it comes to private equity and hedge funds. These are funds where transaction and deal data flows back and forth consistently.

Conclusion:

In the days to come, we may see a Blockchain-based RegTech leveraging real-time data. This technology can transform the compliance and regulatory processes by incorporating analytics and algorithms. This can include new procedures for streamlining customer due diligence and anti-money laundering. Hence, leveraging machine-learning and Artificial Intelligence, most of this dimension can be automated.

Can Blockchain Solve Banking & Telcom Compliance

Blockchain: A Game Changer for Telecom Industry

In the present era, Telecom Industry has become the most complex operational framework engaging different forms of vendors, partners, distributors, network providers, VAS providers, clients, and customers. On the contrary, it is also true that there is a pool of challenges and issues because of the engagement of multiple entities.

So, the bliss of the technology i.e. Blockchain has cured and solved the issues of the banking and telecom industry. Hence, enlighten the below-listed pointers reflecting the same.

  • Internal processes:

When it comes to the occupations like BSS processes (Business Support System) and OSS (Operation Support System) then the number portability databases and billing can be easily be streamlined making use of the blockchain. Thus, all the interest groups could validate the billing hassle-free via intercompany blockchain distributed amid customers, VPMN, VAS providers, HPMN and telecom companies as well. Additionally, a migrating customer can also on-board over the network after receiving a porting request, especially if a receiving operator shares the blockchain to the customer’s operator.

  • Roaming:

The blessing of the invention is that it could easily solve the operator’s older problems in integrating with a high-cost system aiming in rendering an access to the authentication settings. This access is responsible for enabling the roaming call across operators and networks. Moreover, blockchain also helps in enabling the complex datasets across different parties in the shortest duration abreast with trust and security.

  • Smart connection

The gadget’s connection can be served to a pool of the WIFIs and local hotspots depending on the adherence and permission to some terms and conditions. Moreover, automatic generation for payments and billing could also be assisted at an ease.

  • Smart transactions:

Buying and selling of digital assets specifically games, gift cards etc. have become exceptionally easier.

  • Mobile money:

A pocket-friendly international remittance worldwide abreast with a minimal transaction cost has become easy to use via which the telecom operators have also become the global remittance providers.

  • Identity management:

An identity’s management development tools have now become easily accessible to varied companies, gadgets and applications as well.

  • Way Forward:

Blockchain solutions being instrumental have also allowed the interoperability amidst the internal and external systems, especially for varied telecom companies. This practice has fore fronted the cost of compliance and infrastructure as well. Moreover, it also supports the operators from fraud identify and roaming.

No doubt, today, the telecom industry is facing a lot of challenges of eroding margins. Owing to such an issue, there is always a high pressure in cost-cutting practices simultaneously the same time in adopting the innovation in such service. Thus, blockchain is considered as the correct tool in bringing the innovation and efficiency in the services for which it also acts as a watchdog on fraud and malpractices.

Conclusion

The above-listed pointers are powerful in demonstrating the varied ways that the telecom industries can invest in an implementation as well as the development of the goods and services depending on the blockchain technology.

 

How you can earn incentives with your own digital identity?

 

These days, the concept of digital identity is not new on unintroduced. Similarly, Bitcoin established itself via a concept of decentralized digital identity, years ago. Actually, a crucial breakthrough has been taken place by Blockchain technology which is propelling digital identity ahead in the scenario of Self Sovereign Identity that reshapes the decentralized P2P economy’s future.

The emergence of Digital Identity:

  • It’s a storm for the stakeholders who strive their best for it to takes place
  • Increases organization’s efficiency in getting the identity’s assurance
  • Prevention of data breaches abreast with weekly headline news
  • Allows people to decide the data’s distribution

The best part is that people receive all the advantages without relying on the third parties such as Facebook or Google to share and store their data. Moreover, people will be also having their digital identity via fingertips or exactly how they wish?

But a question still arises that what exactly the identity is?

In the industrial era specifically in a digital context it’s a representation of real human relationships but not by social connections. When one thinks in terms of society and decentralized economy things begin in an exciting manner. Moreover, when people become owners of their own data, facts & information then, truly it can be a catalyst to the business’s new sets new ways of interaction.

Why is Digital Identity important?

The challenges of the new digital identity model will only be solved by risk and reputation. Risk will be directly managed by sharing information allowing applying an intelligence layer to the same. On the contrary, when it comes to Reputation, it can also allow the creation of decentralized models in order to establish and generate trust in the economy.

No doubt, the future of digital identity will automatically be a return to the identity as defined by the trust’s web that links all the individuals. Henceforth, in order to comprehend where exactly you are, you prior need to comprehend from where are you coming?

Moreover, it is also true that the society is getting attracted towards the cashless atmosphere via which the initial awe has given a path to the flurry of concerns. To earn incentives going cashless is also one of the best ways.

Advantages of earning incentives while going cashless:

  • Convenience
  • Tracking Spends
  • Discounts
  • Discipline Budget
  • Major Gains
  • Lower Risk

Disadvantages of earning incentives while going cashless:

  • High risk is associated with identity tracks
  • The difficulty for tech-un savvy
  • Losing Phone
  • Overspending

Thus, it is true that there are always some pros and cons associated with something but alas!!! Everything is used accordingly while keeping concerns of all such associated factors in mind.

The same concern is also applicable in earning incentives while going digital or holding digital identity. It all depends on a user that how he makes use of it and in what ways and sense.