Page 32 - coffee table book-Nov 2020 - web_Neat

10

RegTech to redene the In 2019, the FinTech sector witnessed numerous FinTech strategy will be central to assisting bankers resolve
breakthroughs in terms of regulatory technology and bad loan scenarios and frauds. The emphasis will be on
way nservs do business digitization. Financial institutions were also seen investing in accelerating problem detection and pre-emptive action.
the enterprise solutions for internal controls as well as
regulatory reporting. Looking back at regulatory technology, As the economy and the financial sector grows, it is foreseen
the role of regulators grew phenomenally focussing on that banks may put in place technology systems to effectively
financial institutions – from policing to guidance and beyond. control risks. Credit risk manifested as a system wide asset
Failures of large corporates and consequent NPA quality issues was an eye opener for all stakeholders –
declarations at a massive scale have not just led to this regulators, financial institutions, FinTechs, corporates and
regulatory thrust but have also catapulted RegTech from just general public. Regulators now want to intervene before
reporting to a more proactive monitoring process on an other risks can manifest and are now pushing for advances in
ongoing basis, by: regulatory guidance for model risk, liquidity risk, Asset
Liability management and Operational Risk – across banks,
Ÿ Making compliance easier for banks through advanced NBFCs and HFCs. This is where risk-optimised banking
technologies experience comes in, drawing on the strengths of game-
changing technologies to redefine the FinTech playground.
Ÿ Enabling business and risk professionals take more
effective decisions through availability of customer Our focus at BCT Digital, is to continue using disruptive
information with accuracy, currency and brevity. technologies, like, AI/ML, Predictive analytics and Blockchain,
to expedite India’s move to the next generation of banking.
In the recent past, banking reforms stirred the industry to We have been effectively converging emerging technologies
relinquish age-old techniques of data analysis and modelling with banking and will endeavour to keep the momentum
and adopt more rewarding technologies. One reason is that, going.
with digitization, the volume of data has been increasing
exponentially. The technology available with most banks is
not adequate enough to process all of this data being
generated at an unprecedented pace.

So, not only is an alarming amount of data going to waste, As the economy and the
along with it, valuable insights are being lost to the industry.
Luckily, technology advances have facilitated the creation of financial sector grows, it
tools that can handle unimaginable amounts of data. The
adoption of technologies like big data, AI/ML, fuzzy logic, is foreseen that banks
natural language processing (NLP) and analytics, has changed may put in place
the face of FinTech for the better.
technology systems to
In 2020, Safe and responsive banking will take centre stage in
future. High-quality data, emerging technologies and a robust effectively control risks.
Jaya Vaidhyanathan
CEO, BCT Digital
19 Feb 2020

30 rt360 Less risk, more coffee rt360 Less risk, more coffee 31