1

MODULE 4 BANKTECH, INSURTECH & REGTECH

BANKTECH

India's banking and financial sector is rapidly adopting digital technologies, particularly in
lending, to enhance customer experience, improve operational efficiency, and reduce costs.
However, these innovations are governed by a robust regulatory framework designed to ensure
consumer protection, fairness, and financial stability. Below is a brief outline of BANKTECH
in India, with examples of how these trends are being applied in the Indian context.

1. Regulatory Framework for Product Pricing, Loan Origination, and Servicing in

India

• Product Pricing:
o In India, the Reserve Bank of India (RBI) plays a central role in regulating
interest rates on loans. The MCLR (Marginal Cost of Funds based Lending
Rate) framework, which replaced the Base Rate system, determines the
minimum interest rate that a bank can offer to its borrowers.
o The RBI's Fair Practices Code ensures transparency in loan pricing, where
lenders must disclose all charges and conditions clearly to the customer.
o Example: SBI (State Bank of India) and HDFC Bank use the MCLR to set
interest rates for various loans like home loans, personal loans, and car loans.

• Loan Origination:
o Loan origination in India is governed by the RBI's KYC (Know Your
Customer) and AML (Anti-Money Laundering) guidelines, which mandate
that financial institutions verify the identity of customers before processing
loans. Additionally, lenders are required to assess a borrower’s creditworthiness
using their credit scores (e.g., CIBIL Score).
o Example: IndiaLends and LoanTap are digital platforms that use a mix of
KYC, CIBIL score checks, and AI-based algorithms to process loan
applications quickly.

• Loan Servicing:
o Lenders must adhere to RBI guidelines on loan servicing, especially in cases
of loan defaults and restructurings. The RBI's COVID-19 Relief Package
allowed for loan moratoriums and restructuring, aiming to provide relief to
borrowers during the pandemic.
o Example: ICICI Bank implemented digital loan servicing, where customers
can track repayments, modify terms, and request for moratoriums through their
mobile app.
2

2. Social Media-Based Profiling, Comparison Tools, and Aggregators

• Social Media-Based Profiling:

o Some FinTech companies in India are experimenting with social media-based
profiling to assess creditworthiness by analyzing digital footprints, including
social media activity. However, such practices must comply with the Personal
Data Protection Bill (PDPB) (pending legislation) and the IT Act, 2000, to
ensure privacy and data protection.
o Example: ** KreditBee** and CASHe use alternative data such as online
shopping habits and social media activity to offer small personal loans to
millennials and salaried individuals.

• Comparison Tools and Aggregators:

o Indian platforms like BankBazaar, Paisabazaar, and Loansupermart allow
consumers to compare various loan products, interest rates, and terms across
banks and NBFCs (Non-Banking Financial Companies). These platforms must
comply with the RBI's Fair Practices Code and ensure accurate information
and transparency for consumers.
o Example: BankBazaar allows users to compare personal loans, home loans,
and credit cards, providing easy access to financial products across various
lenders.

3. Dynamic Credit Rating, Risk Management & Underwriting

• Dynamic Credit Rating:

o In India, credit scoring is primarily provided by CIBIL, Equifax, Experian,
and CRIF High Mark. The traditional credit rating models are being
supplemented by dynamic models that incorporate alternative data sources, such
as transaction data, social behavior, and other non-traditional metrics.
o Example: ZestMoney and Capital Float use AI and machine learning models
to assess borrowers’ creditworthiness dynamically, often using alternative data
from e-commerce platforms to approve loans for individuals with limited or no
credit history.

• Risk Management and Underwriting:

o Banks and FinTechs are increasingly using machine learning algorithms and
big data analytics to assess loan risks and automate underwriting processes.
This helps in making faster, more accurate decisions, especially for microloans
or personal loans.
o Example: Rupeek (a gold loan startup) uses machine learning to assess gold
loan applications and optimize underwriting and risk management in real time.
3

4. Using Credit Counsellor Robo/Bot for Faster Approvals & Funding

• Credit Counsellor Robo/Bot:

o The use of chatbots or robo-advisors to guide customers through the loan
process is increasing in India. These bots help with everything from loan
eligibility checks to document submission and personalized advice.
o Example: HDFC Bank and ICICI Bank have implemented AI-powered
chatbots like Eva and iPal to help customers apply for loans, check eligibility,
and track loan status. These bots provide a more efficient, 24/7 service for loan
applicants.

• Faster Approvals & Funding:

o AI-driven loan origination systems enable quicker loan approvals, sometimes
within minutes, based on digital identity verification and real-time credit
assessments.
o Example: CashBean and MoneyTap offer instant loans to eligible customers
by leveraging AI and digital verification methods, disbursing funds within hours
of approval.

5. Utilizing Data Science Tools and Machine Learning for Data Mining/Cross-Sale

• Data Mining and Cross-Selling:

o Indian banks and financial institutions are using data mining techniques to
understand customer behavior and offer relevant products. Machine learning
algorithms help identify customers who are likely to purchase additional
products like personal loans, credit cards, or insurance.
o Example: HDFC Bank uses machine learning to analyze customer data for
cross-selling credit cards, personal loans, and insurance products. Similarly,
ICICI Lombard leverages customer data to offer insurance policies to existing
banking customers.

• AI for Customer Insights:

o Machine learning tools help banks analyze large datasets (transaction data,
payment histories) to predict customer needs and tailor products accordingly.
o Example: IDFC FIRST Bank uses AI and machine learning to identify trends
in spending and recommend personalized financial products to its customers.

6. Hybrid Lending Products

• Hybrid Lending Products:

4

o Hybrid lending products combine traditional banking loans with more flexible
terms or alternate sources of capital like peer-to-peer lending or crowdfunding.
These products cater to a wider range of customers, including those underserved
by traditional banks.

o Example: LendingKart and Finbox are platforms offering hybrid products

where small and medium enterprises (SMEs) can access loans from both
traditional banks and P2P lenders, utilizing a mix of traditional credit scoring
and alternative data.

• Secured and Unsecured Hybrid Loans:

o In India, hybrid loan products are common, where unsecured personal loans are
offered alongside secured loans like home loans or gold loans. These products
offer more flexibility to customers depending on their financial profile.
o Example: Fullerton India provides a hybrid loan offering where customers can
choose from secured and unsecured loan options based on their eligibility and
the nature of the loan.

Machine Learning (ML) is increasingly being adopted in the Banking, Financial Services, and
Insurance (BFSI) sector to drive operational efficiency, enhance customer experience, improve
decision-making, and mitigate risks. Here's a breakdown of how ML is being used in various
BFSI sub-sectors:

1. Fraud Detection and Prevention

• Use Case: ML models can identify suspicious activity and anomalies in transactions
that may indicate fraudulent behavior.
• How it works: ML algorithms, particularly supervised learning (e.g., decision trees,
logistic regression, and neural networks), analyze historical transaction data to learn
patterns of legitimate and fraudulent behavior. Over time, these models can adapt and
identify even subtle, previously unseen fraud patterns.
• Example: Credit card companies use ML to detect unusual spending patterns and flag
potentially fraudulent transactions in real-time.

2. Credit Scoring and Risk Management

• Use Case: ML can enhance credit scoring models by analyzing a broader range of
variables beyond traditional credit history.
• How it works: By using historical data, including non-traditional data sources (e.g.,
social media activity, payment behavior, and demographic information), ML models
can predict the likelihood of default or creditworthiness more accurately.
• Example: Banks can use ML algorithms to assess the creditworthiness of customers
with limited credit histories or those from underbanked segments.
5

3. Customer Segmentation and Personalization

• Use Case: ML helps financial institutions better understand customer behavior and
tailor services and offerings accordingly.
• How it works: By clustering customers based on similar attributes and behaviors (using
unsupervised learning techniques like k-means or hierarchical clustering), banks and
insurers can personalize product recommendations, marketing campaigns, and services.
• Example: Personalized financial products like savings plans, loan offers, and insurance
policies based on individual customer profiles.

4. Chatbots and Virtual Assistants

• Use Case: ML-driven chatbots and virtual assistants improve customer service and
engagement by providing 24/7 support.
• How it works: Natural language processing (NLP) and deep learning models allow
chatbots to understand and respond to customer inquiries, process transactions, and
provide tailored advice.
• Example: A chatbot answering frequently asked questions about loan products or
insurance policies, or assisting customers in navigating their online banking app.

5. Predictive Analytics for Financial Markets

• Use Case: ML can predict stock prices, market trends, or investment opportunities.
• How it works: ML algorithms, particularly time-series forecasting models (e.g.,
ARIMA, LSTM neural networks), analyze historical financial data to make predictions
about future stock prices or asset movements. Sentiment analysis of news and social
media can also be incorporated to gauge market sentiment.
• Example: Algorithmic trading strategies powered by ML models can make real-time
decisions about buying or selling stocks based on price movement predictions.

6. Regulatory Compliance and Anti-Money Laundering (AML)

• Use Case: ML is used to ensure regulatory compliance and detect money laundering
activities.
• How it works: ML models analyze transaction data, identify patterns indicative of
money laundering, and flag suspicious activities. These systems evolve over time,
becoming better at detecting complex and evolving laundering methods.
• Example: Financial institutions can use ML to automatically monitor for unusual
transaction patterns or relationships between clients that might indicate money
laundering activity.

7. Claims Processing in Insurance

• Use Case: Insurance companies use ML to automate claims processing and fraud
detection in claims.
• How it works: ML models assess the validity of claims by analyzing historical data
and comparing new claims with past patterns. Computer vision techniques can also be
used to assess damages in photos submitted by customers.
6

• Example: In health insurance, ML can be used to flag potentially fraudulent claims by

analyzing patterns of treatment and medical costs.

8. Loan Default Prediction

• Use Case: ML models can predict the likelihood of a borrower defaulting on a loan.
• How it works: By analyzing historical loan repayment data, customer demographics,
and external economic factors, ML algorithms can estimate the likelihood of default.
• Example: Banks using ML-based models to assess the probability of a borrower
defaulting and adjusting loan terms or offering risk-adjusted pricing accordingly.

9. Investment Risk Assessment

• Use Case: ML can be used to assess and manage investment portfolios by evaluating
risk factors and optimizing asset allocation.
• How it works: Algorithms analyze historical market data and simulate different
investment scenarios to understand the potential risks and returns of various investment
strategies.
• Example: Robo-advisors that use ML to automatically manage investment portfolios
based on client risk profiles and market conditions.

10. Operational Efficiency and Automation

• Use Case: ML helps automate routine tasks such as document processing, compliance
checks, and report generation.
• How it works: ML models, especially those based on NLP and OCR (optical character
recognition), can process and analyze large volumes of unstructured data (like forms
and contracts) to extract key insights and automate processes.
• Example: Automating customer onboarding by extracting and verifying customer data
from scanned documents.

Technologies Used in ML for BFSI:

• Supervised Learning: Common in fraud detection, credit scoring, and customer

segmentation (e.g., logistic regression, decision trees, random forests, support vector
machines).
• Unsupervised Learning: Used in customer segmentation and anomaly detection (e.g.,
k-means clustering, DBSCAN).
• Deep Learning: Applied in NLP (e.g., sentiment analysis, chatbots), image processing
(e.g., document verification), and time-series prediction (e.g., stock market prediction).
• Reinforcement Learning: Can be applied in areas like algorithmic trading or portfolio
management.
7

INSURTECH
InsurTech in India is one of the most dynamic and fast-growing sectors within the broader
financial technology ecosystem. It refers to the innovative use of technology, particularly in
the insurance sector, to improve efficiency, customer experience, and overall service delivery.
In India, InsurTech is poised to disrupt traditional insurance business models, leveraging new
technologies like Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT),
and data analytics. Below, I’ll describe the key trends in InsurTech in the Indian context with
examples across various domains.

1. Business Model Disruption in InsurTech

• Traditional vs. Disruptive Models: Traditionally, insurance in India has been

distributed through agents, brokers, and directly by insurers. However, InsurTech
companies are disrupting this model by introducing technology-driven, direct-to-
consumer (D2C) models.
• Emerging Business Models:
o Digital Insurance Platforms: Many startups are providing fully digital
platforms where customers can compare, purchase, and manage policies
entirely online. These platforms often operate without agents and directly offer
policies from various insurers.
o Peer-to-Peer (P2P) Insurance: In this model, individuals come together to
form a pool of funds to cover risks collectively. This model is gaining attention
due to its cost-effectiveness and the promise of lower premiums. For example,
Acko General Insurance in India offers a fully digital platform for car
insurance and has ventured into P2P-style offerings.
o Microinsurance: This model targets lower-income groups, offering smaller
premiums with limited coverage but a simple process. InsurTech companies are
using digital platforms to make microinsurance products more accessible to the
underserved population in India.
o On-demand Insurance: This model allows customers to buy insurance policies
on a per-use or time-based basis. For instance, Toffee Insurance offers
customizable micro-policies, like insurance for events or gadgets, which can be
activated on-demand through a mobile app.
• Example: BimaPe, an InsurTech startup in India, offers a platform that connects
insurance buyers with product options from multiple insurers using AI-driven
algorithms to recommend the most relevant products. This approach bypasses
traditional agents and brokers, offering customers a seamless, online experience.

2. Aggregators and Comparison Platforms

• Role of Aggregators: Aggregators act as online intermediaries that provide customers

with the ability to compare different insurance products from multiple insurers. They
offer transparency in pricing and coverage, making it easier for consumers to select the
most suitable products based on their requirements.
• In India, aggregators have made the process of buying insurance easier, reducing the
reliance on agents and improving price competition among insurers.
• Examples:
8

o Policybazaar: One of India's largest insurance aggregators, Policybazaar

allows customers to compare and purchase health, life, and motor insurance
policies from different insurers. It uses data analytics to provide personalized
recommendations and improve customer decision-making.
o Coverfox: Another online platform that compares various insurance products
and helps users find the best deals based on their specific needs, such as term
plans, health insurance, or motor insurance.

3. AI/ML in InsurTech

AI and ML technologies are being leveraged in multiple areas of the insurance lifecycle, from
risk assessment and underwriting to claims processing and customer service.

• Personalized Customer Experience: InsurTechs in India are using AI to deliver a

more personalized customer experience. By analyzing customer data (such as
demographic details, purchase behavior, and preferences), they can offer tailored
insurance products.
o Example: Niva Bupa Health Insurance uses AI-driven models to offer
personalized health plans and to help assess risk levels for specific individuals.
• Risk Assessment and Underwriting: AI and ML algorithms can process vast amounts
of structured and unstructured data to predict risks more accurately. These models can
analyze historical data, medical records, lifestyle choices, and even social media data
to refine underwriting decisions.
o Example: Policybazaar and Turtlemint use AI-driven models for digital
underwriting and pricing policies based on individual risk profiles, making the
process faster and more efficient.
• Fraud Detection: ML models can detect anomalies in claims data, helping insurance
companies in India identify and prevent fraudulent claims. By analyzing historical
claims data, AI can flag suspicious activities, thereby reducing operational costs and
enhancing claims integrity.
o Example: HDFC ERGO has integrated AI and machine learning to improve
its fraud detection capabilities by identifying irregularities in claims
submissions and detecting fraudulent patterns more effectively.

4. IoT and InsurTech

The Internet of Things (IoT) is playing an increasingly important role in the Indian InsurTech
space. IoT-enabled devices help insurers collect real-time data about policyholders' behaviors,
which is then used for more accurate risk assessment, pricing, and claims processing.

• Usage-based Insurance: IoT devices (such as connected car systems or wearable

health devices) allow insurers to offer usage-based insurance (UBI), where premiums
are based on actual usage patterns rather than traditional underwriting methods.
o Example: Acko General Insurance is using telematics (IoT technology) for
car insurance, where customers' driving behavior is tracked through an app, and
they are rewarded with lower premiums for safe driving habits.
• Health and Wellness: Wearables and IoT health devices, such as fitness trackers,
provide insurers with data on policyholders' health and activities. This data can be used
to adjust health insurance premiums based on an individual's lifestyle, potentially
lowering costs for healthier customers.
9

o Example: Goqii is an Indian startup that combines fitness trackers with a health
coaching app. Users can receive health-related insurance plans based on the data
collected from their devices.

5. Risk Modeling in InsurTech

Advanced risk modeling powered by AI and big data analytics is helping InsurTech companies
offer more granular risk assessments and better pricing models.

• Example: Acko and Digit Insurance use data-driven risk models that allow them to
design more accurate pricing structures based on individual customer behavior (e.g.,
driving patterns, health habits). These companies can then offer more competitive,
tailored products that may not be possible with traditional risk models.
• Weather Risk Modeling: Given the increasing frequency of natural disasters and
climate-related events in India, insurers are using data from IoT devices (such as
weather sensors) and advanced modeling techniques to assess and price weather-related
risks.
o Example: Bajaj Allianz uses satellite data and IoT sensors to monitor and
assess environmental risks, helping them provide better coverage for agriculture
and property against extreme weather events.

6. Fraud Detection

Fraud remains a significant challenge in the Indian insurance industry, with fraudulent claims
accounting for a large percentage of the industry's losses. InsurTech companies are employing
AI, ML, and advanced analytics to detect and prevent fraud.

• Claims Verification: AI models can identify discrepancies in the claims data (e.g.,
inconsistent medical records, duplicate claims, etc.), which helps insurers reject
fraudulent claims more efficiently.
• Example: Turtlemint, a digital insurance advisor platform, uses AI-based fraud
detection tools that help insurers quickly verify claims, reducing instances of fraud and
enhancing the customer experience by minimizing delays.
• Blockchain: Some InsurTech startups are also exploring blockchain for its potential to
create transparent, immutable records for policyholders and insurers, ensuring that
claims cannot be altered or fabricated.
o Example: Emqueue and LumenPay are experimenting with blockchain to
provide secure and transparent claim processing systems.

7. Claims Processing and Underwriting

• AI-Driven Claims Processing: InsurTech companies in India are automating claims

processing using AI and ML algorithms. This reduces human error, speeds up the
claims settlement process, and provides a better customer experience.
o Example: Bajaj Allianz uses AI-powered chatbots and automated claim
processing systems to resolve customer issues and process claims faster.
• Computer Vision and Claims Assessment: In auto and property insurance, computer
vision technology is used to assess damage through images, speeding up the claims
process.
10

o Example: Acko uses AI and computer vision tools to assess vehicle damage
through images submitted by customers, reducing the time it takes to settle
claims.
• AI for Underwriting: InsurTechs are also improving the underwriting process by using
AI to assess risks more accurately based on an individual’s digital footprint, behavior,
and lifestyle. This is particularly useful in the context of health and life insurance.
o Example: Digit Insurance uses AI to analyze an applicant's historical health
and lifestyle data to predict potential future claims and adjust premiums
accordingly.

REGTECH

RegTech (Regulatory Technology) refers to the use of technology to help organizations

comply with regulatory requirements efficiently and at lower costs. It is a subset of the broader
FinTech sector and is focused on automating and improving compliance, reporting, risk
management, and regulatory processes. RegTech is particularly important in the financial
services sector, where regulatory compliance is a significant challenge due to complex and
ever-changing rules and regulations. In India, the RegTech landscape has evolved rapidly in
response to regulatory complexity, digitalization, and increasing regulatory scrutiny.

1. Evolution of RegTech in India

The evolution of RegTech in India has been driven by several key factors:

• Regulatory Complexity and Compliance Burden: India's financial sector has seen a
surge in regulatory reforms in recent years. The introduction of the Goods and Services
Tax (GST), RBI's AML/CFT guidelines, and KYC norms has increased the
complexity of compliance. RegTech tools are helping financial institutions streamline
compliance with these regulations, automate tasks, and reduce manual errors.
• Digitalization and Growth of FinTech: With the rise of digital financial services and
the expansion of online platforms (e.g., digital banking, payments, lending), the need
for compliance and risk management tools has also increased. RegTech helps FinTech
companies automate their processes, such as identity verification, fraud detection, and
reporting.
• Government Initiatives: The Indian government's focus on Digital India, the Jan
Dhan Yojana, Aadhaar, and the Unified Payments Interface (UPI) has led to a
greater push toward digital financial inclusion. Alongside, India's regulatory bodies,
such as the Reserve Bank of India (RBI), Securities and Exchange Board of India
(SEBI), and Insurance Regulatory and Development Authority (IRDAI), have
introduced various guidelines that have propelled the adoption of RegTech solutions.
• Data Protection Regulations: The proposed Personal Data Protection Bill (PDPB)
and the need for strong data privacy controls have emphasized the importance of
compliance with data protection regulations. RegTech companies in India are
developing tools to help businesses comply with these stringent data privacy laws.
11

2. RegTech Ecosystem in India

The RegTech ecosystem in India is still in its early stages, but it is growing rapidly, with both
global and local players contributing to the market. The key components of the RegTech
ecosystem in India are:

a. Key Players in the RegTech Market

• Startups and Tech Companies: Startups are playing a significant role in the Indian
RegTech ecosystem by offering innovative solutions. Some examples include:
o Razorpay: Known for its payment gateway and API solutions, Razorpay is
working on automating tax compliance and reporting for businesses.
o Kochi-based Finbox: Provides digital lending solutions that include
compliance checks and risk assessments for lenders.
o Signzy: A Bangalore-based startup specializing in digital KYC and onboarding
solutions using AI and blockchain technology.
• Regulatory Bodies: Indian regulators like the RBI, SEBI, IRDAI, and the Ministry
of Corporate Affairs (MCA) play a key role in shaping the RegTech landscape by
introducing new regulations and encouraging the use of technology for compliance.
• Large Financial Institutions: Traditional banks, insurance companies, and other
financial institutions are also increasingly adopting RegTech solutions to streamline
their compliance processes. For example, ICICI Bank and HDFC Bank have
partnered with RegTech startups to automate KYC and AML checks.
• Consulting Firms and System Integrators: Large global consulting firms like
Deloitte, EY, and PwC are also involved in the RegTech space, helping organizations
implement compliance solutions.

b. Key Technologies Driving RegTech in India

• Artificial Intelligence (AI) & Machine Learning (ML): AI and ML are used to
analyze vast amounts of regulatory data, detect suspicious activities, and streamline
compliance processes. For instance, AI is used for fraud detection, risk modeling, and
automated compliance checks.
• Blockchain: Blockchain can improve transparency and security in compliance-related
processes, such as KYC and contract management. Blockchain's immutable ledger can
also be used for audit trails in financial transactions.
• Data Analytics: RegTech companies leverage data analytics for regulatory reporting,
risk management, and customer data management, helping firms to comply with both
domestic and international regulatory requirements.
• Robotic Process Automation (RPA): RPA is increasingly being used to automate
repetitive compliance tasks, such as data entry, report generation, and document
management.

c. Challenges in the Indian RegTech Ecosystem

• Fragmented Regulatory Landscape: Multiple regulators (e.g., RBI, SEBI, IRDAI)

have jurisdiction over different segments of the financial market, creating a fragmented
compliance landscape. RegTech solutions must integrate across various regulatory
frameworks.
12

• Data Privacy and Security Concerns: RegTech solutions often deal with sensitive
customer data (e.g., financial transactions, KYC documents), which raises concerns
around data security and privacy.
• Regulatory Adoption: While some regulators in India are pushing for the adoption of
RegTech (such as RBI’s digital KYC guidelines), there is still resistance to fully
embracing technology in regulatory processes.

3. Smart Regulation in India

Smart regulation refers to the use of technology to make regulations more efficient,
transparent, and adaptable. In India, smart regulation is gaining traction, especially as the
country modernizes its financial and digital infrastructure. Key elements of smart regulation in
India include:

a. AI-Driven Regulatory Supervision

• Regulators are increasingly using AI and data analytics to supervise and monitor
financial institutions. For example, the RBI and SEBI have begun exploring AI models
to detect market manipulation, suspicious trading patterns, and non-compliance with
regulations.
• SEBI has set up a Surveillance Department that uses AI and machine learning to
monitor the securities market in real time and identify potential irregularities such as
insider trading and market abuse.

b. RegTech-Enabled Compliance

• Regulators are increasingly encouraging financial institutions to use RegTech tools for
compliance. For example, RBI has mandated banks to implement e-KYC and AML
technologies, and SEBI has been focusing on automating regulatory reporting using
RegTech solutions.
• e-KYC (electronic Know Your Customer) is one of the most significant RegTech
solutions in India, allowing financial institutions to verify customers' identities quickly
and efficiently. This has been particularly useful in increasing financial inclusion
through digital platforms.

c. Data-Driven Policy Making

• With increasing access to data, Indian regulators can create smarter, more data-driven
policies. For example, RBI has used data analytics to assess the financial health of
banks and predict potential risks.
• The introduction of India’s Personal Data Protection Bill (PDPB) aims to make data
privacy more robust, and RegTech companies are working on tools that help
organizations comply with the bill’s requirements.

d. Real-Time Regulatory Reporting

• Smart regulation enables real-time reporting and data-sharing between financial

institutions and regulators. This is particularly important in sectors such as banking and
insurance, where accurate and timely data is crucial for maintaining systemic stability.
13

• NSDL (National Securities Depository Limited) has implemented electronic systems

for real-time trade surveillance in the securities market, using AI and RegTech
solutions to detect suspicious activities.

Examples of RegTech Solutions in India

1. Signzy: A Bangalore-based RegTech firm that uses AI and blockchain to offer digital
KYC, AML checks, and risk assessment solutions. It helps financial institutions comply
with RBI's regulatory guidelines in a more efficient and secure way.
2. Razorpay: This FinTech company offers payment solutions that automate tax
compliance and reporting for businesses, especially in the context of GST.
3. ComplyAdvantage: A global RegTech company that uses AI to detect and prevent
financial crimes such as money laundering and fraud, and has clients in India including
banks and financial institutions.
4. CureMetrix: This RegTech company provides AI-powered tools for healthcare
insurance providers, helping them streamline claims processing and fraud detection by
analyzing medical claims data.