How RegTech is Creating Safer Digital World: Interview with Ankit Ratan, CEO & Co-founder at Signzy

By Puja Sharma

What is the role of RegTech in addressing the challenges of cyber fraud? And how can RegTech combat such threats with its innovative solutions?

RegTech solutions are an important asset in combating cyber-fraud through innovative solutions. By deploying Artificial Intelligence (AI) and Machine Learning (ML), RegTech helps optimise risk management and real-time fraud monitoring capabilities. It plays a pivotal role in proactively identifying potential compliance breaches, fraud, and suspicious activities and leads to enhancing digital trust in the ecosystem. These AL & ML applications enable RegTech to scan large datasets, analyse patterns indicative of fraudulent behavior, and send early warnings to clients.

RegTech platforms go a step further by providing robust security features, encompassing encryption and secure data storage. This mitigates the risk of data breaches, safeguards against unauthorised access, and prevents bad actors from onboarding the digital ecosystem. With an adaptive approach to match the ever-evolving landscape of cyber threats, regtech empowers firms to combat cyber fraud effectively, ensuring a robust and secure digital environment.

How is Signzy aiding the BFSI sector in streamlining user verification process for its clients?

The BFSI sector faces a growing threat of cyberfraud; necessitating strengthened measures to prevent unauthorised access to digital platforms and safeguard user data. Signzy is vital in streamlining user verification processes and reducing Turnaround-Time (TAT) for best-in-class customer experience for its BFSI clients. We harness advanced AI & ML technology to provide a comprehensive identity verification platform to revolutionise onboarding experiences and scale the sector’s compliance process without compromising security. We have also integrated Video KYC with live interactions, comparing facial features with government-issued ID photos for defence against replication or forgery attempts by fraudsters. Signzy’s constant monitoring ensures immediate identification of suspicious transactions and helps shape India’s financial future through robust security measures in the BFSI sector.

An emerging cyber threat, such as deepfakes, has a major impact on digital trust. How can businesses with a significant online presence combat such emerging threats?

The deepfakes utilise AL & ML to fabricate hyper-realistic content, including videos and images. It can potentially impact business reputation adversely and warrants immediate attention from online businesses of all sizes. Businesses need to invest in robust identity verification security measures such as video KYC to counter the risks posed by deepfakes, especially in the BFSI sector.

Signzy provides video-KYC solutions to its clients, including real-time interaction, integrated AI and biometric analysis to detect digital manipulation, document verification & facial recognition, and continuous updates in video-KYC. This will help businesses to be a step ahead of fraudsters and defend the digital fort. We observe that the financial institutions that have embraced this technology report fewer identity fraud incidents, increased confidence in the customer verification process, and a boost in overall digital security.

Recent regulatory developments, such as DPDPA 2023, the Telecommunications Act, and RBI’s KYC amendments in master directions, focus on data protection and strengthening the KYC process. How will such developments impact the different industries?

Businesses should not innovate and grow at the expense of compliance. To ensure data protection and promote compliance, the government has enacted laws that align with international standards, such as DPDPA 2023 and Telecommunication Act 2023. The RBI has also announced changes in its master directions regarding KYC norms to boost security measures by BFSI sectors. These regulatory developments will mandate companies across industries to adopt ethical data practices and enhance online authentication measures. The Telecommunication Act 2023 brings traditional phone calls and SMSs and communication channels such as Gmail, WhatsApp and Slack under the gambit of the law. It ensures that users are onboarded after following a robust authentication process to prevent misuse and privacy violations.

As industries adapt to these evolving regulations, successful implementation will require transparency, robust data protection, and user-centric policies to balance the intended benefits with practical challenges.

Are there any new emerging cyber threat trends that online businesses need to be concerned about?

As technology advances, online businesses face an array of emerging cyber threats that demand vigilant cybersecurity measures. A notable concern is the rise of internet fraud, propelled by sophisticated tactics fraudsters use. Other emerging cyber frauds that we see in various sectors are AI-enhanced phishing attacks, cross-border transaction frauds, KYC data breaches and manipulations, deposit fraud, SIM jacking, and SIM swapping, to name a few.

The businesses need tailored solutions specific to their sector. The organisations also need robust  KYC verification, digital identity verification and fraud detection & prevention solutions, offering comprehensive tools to combat cyber threats and ensure a secure online environment for businesses and users.