The Regtech Industry:
In the Regtech industry lot of things are happening in block chain- distributed ledger, the way the Regtech industry is moving, the way we can democratize the Regtech industry . We are looking at cloudified or SaaS model for treasury products. we are seeing some of these new/existing ledger systems are becoming distributed and started adopting blockchain technologies. How these are helping to reduce the cost of maintaining the ledger that’s the important purpose. One angle of using blockchain is to improve security aspect & another angle is to democratize the cost. Lots of these distributed security mechanisms are to insist on the cost part. So we are seeing that as a huge game changer & we as a governance, risk & compliance (GRC) company existing for nearly 4 years, we knew how the community & other banks of the emerging markets and their need for compliance products. We have worked very closely with the regulator of the country (Reserve Bank of India), the RBI have clearly chalked out their needs based on that we have built a compliance management product, where we have decoded RBI’s cyber security guidelines.
In RBI’s cyber security guidelines there are controls, checklists & domains are codified in that based on which are trying to help even the community banks on how they can think about the compliance analytics (or) risk analytics as an extension of their compliance management fleet. We believe the new distributed ledger systems of using blockchain and the regtech phenomenon is going to hugely disrupt even the emerging markets BFSI sector not just the banking sector alone, even the insurance industry, whole financial services industry is going to get benefited by these new age techniques & technologies like Blockchain.
Banks & Distributed Ledger:
When the US Banks alone have paid more than $160B as fines post-financial crisis for non-compliance, the banks & financial institutions need more cost-effective solutions in regulatory & compliance that will increase the efficiency as well as the ROI. Why banks are maintaining ledger? It’s to comply towards some regulate that’s the very purpose of the ledger. They maintain lots of ledger like general ledger to many other types of ledger, I don’t want to go into the details. But they have to maintain ledger to report to the regulator saying that these are different ledgers they are maintaining. Maintaining of ledger process is becoming streamlined, Simplified using distributed ledger systems using blockchain kind of technologies is going to be a huge disruptor & we believe even the SaaS way of doing treasury lots of those interesting problems. So, we want to make a stand here that the cloud, regtech & analytics connecting these 3 dots is going to highly disrupt the whole regtech world.