Regtech, a shortened form of Regulatory Technology, refers to solutions that integrate information technology in regulatory processes.
The companies or startups in this industry focus on monitoring, reporting and also ensures compliance.
Regtech can be applied across various industries and sectors, as every sector needs to make informed decisions and keep track of their data for easy retrieval whenever needed.
Regtech offers solutions around compliance processes, auditing, fraud, and risk management. Regtech Solutions are aided greatly by the application of the following technologies:
- Blockchain technology
- Big data for monitoring and surveillance
- Artificial intelligence
- Machine learning
- APIs
- Cloud computing
- Natural language processing for interpreting legislation & automatically extracting requirements
- Virtualization
- Data mining and analytics
Regtech solutions generally simplify data management and ensure that Regulatory filings are transparent and efficient.
Regtech is also said to be a centerpiece that holds Technology, Fintech, Financial Services, and Regulations together.
As Regtech has a significant impact on the compliance training, identity, know your customer (KYC), Tax, biometrics, general data, and legal units of financial institutions.
Regtech solutions are used by Money-Laundering Reporting Officers (MLROs) to ensure that their firms are in compliance with the necessary regulations and are not at risk of prosecution due to breaches.
MLROs are largely responsible for ensuring that their firms do not breach Regulations. Because when it occurs, these firms suffer both reputational damages and are also fined heavily.
The risk management solutions of Regtech systems aid in decision-making that will mitigate risks. As collated risk data is used for modeling, analysis, liquidity reporting, and stress- test aided forecast.
Below are some Regtech Companies and startups in Nigeria:
Voyance
This Regtech was founded in 2019 and launched its operations in Lagos. Voyance offers data management services.
It uses AI-enabled tools to analyze data and produce results that are used in making informed business decisions.
Voyance provided a fraud management solution specifically for Fintechs, the solution is called Sigma.
Sigma is a fraud graph database that hinders fraudsters especially ones who have been uncovered from tampering with the organization.
AirSmat
Founded in Lagos also in 2019, AirSmat provides AI-enabled solutions for drone data management.
This AirSmat solution is called AirSmat Artificial Intelligence enabled software, this software helps to extract and arrange valuable data from drones.
The software transmits this information while the drone is still in the sky to the user, for the user to take actions in real-time.
AirSmat Artificial Intelligence enabled software is used by large-scale farmers who use drones to see the plants’ growth pattern, plant size, measure the efficiency of plantations, and generally helps the farmer in monitoring a farm.
Talo
This Regtech startup built solutions specifically for the financial industry. Talo was founded in 2018 and is located in Lagos.
Talo offers an AI-enabled conversational banking solution that enables financial institutions to further develop their market through efficient and effective messaging by leveraging AI to drive customer engagement.
The AI-enabled solution enables financial institutions to offer some services to their customers from their website, services like payments, account opening, balance checks among others.
Indicina Technologies
This Regtech was founded in 2017 and is also located in Lagos. Indicina Technologies provides solutions for loan management purposes.
These solutions aid in loan origination and monitoring, portfolio management, fraud management among others.
These solutions monitor loan life cycles as well as credit analysis platforms that use machine learning and predictive analytics to identify bad loans during the application and underwriting process and subsequently reject them.
Chiniki Guard
This Regtech provides AI-enabled theft prevention solutions for both large-scale organizations and retailers. Its solution analyzes in-store video data categorizing attributes and actions of every individual in there.
The software then alerts the owner once suspicious actions are detected. It is connected to an app that notifies the business owner in real-time.
The Chiniki Guard software also provides an analytics dashboard
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