RegTech solutions can be a game-changer
FinTech BizNews Service
Mumbai, May 20, 2024: The Reserve Bank of India recently held conference in Mumbai on the subject of "Governance in ARCs - Towards Effective Resolutions" with the Directors and MD/ CEOs of Asset Reconstruction Companies (ARCs). Arpit Ratan, Co-founder & CBO, Signzy, shares his viewpoint on the topic:
"The RBI's conference on "Governance in ARCs - Towards Effective Resolutions" sheds light on the critical role of sound practices in building a strong foundation for ARCs. It's encouraging to see the emphasis on responsible conduct in debt recovery and adherence to the Fair Practice Code (FPC). Setting the right ethical tone from leadership and going beyond the bare minimum of regulations ("regulation plus" approach) are crucial steps.
However, achieving these goals requires robust assurance functions – risk management, compliance, and internal audit. This is where RegTech solutions can be a game-changer. AI-led automated compliance monitoring, risk identification tools, and data analytics can empower internal audits. These technologies can significantly enhance governance by streamlining processes, mitigating risks, and encouraging ethical decision-making throughout the organization.
By embracing RegTech alongside strong leadership commitment, ARCs can truly achieve effective resolutions and navigate the challenges of asset reconstruction with greater confidence and transparency."
