
Kyzer Software is one of the leading banking software product companies, building Niche products in Trade Finance, Regulatory Reporting, and Compliance that works and assists in creating unique value and opportunity for the clients, workers, investors, and ecosystem partners. Below is a transcript from a recent interaction between team IT-Voice and Manish Bharucha, CEO of Kyzer Software:
Prateek: What is the vision behind Kyzer Software?
Manish
Bharucha: Kyzer Software is an
established company in Banking Automations and our vision is to be one of the
global leaders with Trade Finance Process Automation and Regulatory Management.
Envisioning new technologies as part of the global solution offerings.
Prateek: How has FinTech Regtech evolved in recent years?
Manish
Bharucha: Regtech is the management
of Regulatory processes within the financial industry. The main functions
include Regulatory Monitoring, Reporting, and Compliance Management.
Even though Regtech as terminology is
comparatively new, Regulatory Technology has been associated with global
regulatory agencies, jurisdictions, and finance for a long time.
Each Country and region comply with different
regulatory regimes. In a highly interconnected world, local events send ripples
across the borders resulting in revisions of compliance frameworks or the
introduction of new sets of regulations.
Going ahead the biggest challenges for
Compliance practitioners would be to identify, manage and cope with continuing regulatory
changes. The volume of data produced by the financial industry today is
massive. Leveraging this data to extract customer insights and ensure fraud
prevention requires analysis beyond the ability of any single team and usage of
new technologies such as AI, ML, OCR, and Blockchain among others.
As per industry reports for FY 2021, 67% of
globally significant financial institutions (G-SIFIs) have a mix of in-house
and externally developed Regtech solutions.
Prateek: What are some of the challenges Indian Regtech
companies face? How is the market changing?
Manish
Bharucha: With reports of bank
failures, money laundering, data privacy breaches, regulators have taken a much
more active role than ever before. Financial institutions are now required to
follow regulations in multiple areas including market risk, credit risk,
liquidity, and operational risk, financial crime, payments and trade, regulatory
reporting among others.
Following these regulations mean expenditure
on compliance which global financial institutions may go up to billions per
year. Banks and FIs, which were traditionally conservative and innovation
followers, are now on the lookout for out-of-the-box, transformative,
efficient, and cost-effective solutions.
Regtech companies are coming up with
cognitive solutions which are more data-driven and would be able to predict,
alert and suggest corrective actions.
Prateek: What is the scope of technologies like ML & AI in
the Regtech industry?
Manish Bharucha: Regtech players using conventional and upcoming AI
and ML technologies are acting as major compliance solution providers for the
financial institutions ensuring savings towards penalties along with compliance
costs.
Areas
most impacted by Regtech in the coming years are Compliance monitoring,
Financial crime, AML/CTF and sanctions, Onboarding and KYC, Cyber Security, and
General Data Protection Regulations. Global firms are reporting that their risk
and compliance functions are being fully engaged and consulted in their firm’s
approach to Regtech.
Prateek: What do you think the Indian government can do to
support Regtech startups?
Manish
Bharucha: The role of governing
regulatory bodies has evolved from the mere introduction of directives to
ensuring implementation and adherence to the regulations. While some regulators
use the baton of fines and penalties for enforcement, others have taken a step
ahead of proactive engagement with Regtech players. The government efforts have
also increased the confidence in the investor communities.