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Fintech & Data Risk

Posted on | by Signzian

The global fintech market was valued at $127.66 billion in 2018, and it is anticipated to grow at a CAGR Of 24.8 percent to $309.98 by 2022. According to Statista, 66.7 percent of bank executives believe FinTech will have a global influence on wallets and mobile payments. 

This illustrates how the Fintech sector has experienced tremendous growth in recent years and will continue to do so in the future. Another aspect that is stealing the limelight as a result of this rapid expansion is data risk. As more individuals switch from conventional methods to Fintech, the risk of critical data being compromised has grown dramatically.

Exemplification of Data Risks

According to a study conducted by Keeper Security, 70% of financial services firms have experienced a cyber attack in the previous year. Since the outbreak of the pandemic, a surge in cyber assaults has prompted FinTech firms to rethink and refocus their security strategies

A few examples of data breaches in the financial sector:

1. Dominos India

Domino’s India suffered a major data breach in April when the credit card information of nearly ten lakh of its customers and employees was leaked on the Dark Web. Names, phone numbers, and payment information, including credit cards and pizza preferences, were among the information leaked.

Alon Gal, CTO of security firm Hudson Rock, discovered the leak when he came across someone offering 10 bitcoin (approximately US$535,000 or INR4 crore) in exchange for 13TB of data, which included one million credit card records and details of 180 million Dominos India pizza orders.

2. Facebook

When the personal data of over 533 million Facebook users was posted on a low-level hacking forum, it was exposed in a data breach. Phone numbers, full names, locations, email addresses, and biographical information of users from 106 countries were leaked, with India being one of them.

Methods to Mitigate

To avoid data loss or theft, businesses must guarantee that data is appropriately safeguarded. When a data breach occurs, businesses should notify people, as well as report the risk of damaging their brand and consumer loyalty. Companies might face fines of up to €20 million or 4% of yearly sales under the General Data Protection Regulation. 

Following a variety of recommended practices can help to reduce the risk of data breaches:

  • Ensure the app’s secure architecture and code

Developing a safe app’s logic entails incorporating security into each phase of the app’s usage. You must evaluate what data to keep, where it will be saved, who will have access to certain app features and data, and more throughout the early phases of app development.

  • Use Code Obfuscation

Developing a safe app’s logic entails incorporating security into each phase of the app’s usage. You must evaluate what data to keep, where it will be saved, who will have access to certain app features and data, and more throughout the early phases of app development.

  • Build Secure Identification, Authentication, and Authorization Processes

When a person claims to be a user of your app, identification entails supplying a name or username. Authentication is supposed to show that they are who they say they are. The next stage is to decide what they are permitted to do after the system has identified and authenticated them.

Threat Landscapes Where Data are at Risk

Though Fintech in today’s world has become increasingly secure, there are still some weak spots that can put our data at risk. These are some of the risks which may emerge while you use any fintech platform.

  • Fraud Risk 
  • Merchant Risk
  • Regulatory risk 
  • Anti-money laundering and countering terrorist financing
  • Consumer Risks
  • Cybersecurity and Data Privacy
  • Credit risk and operational risk
  • Outsourcing Risk 

Data Risks & Third-Party Ecosystem

For specialist services, competitive advantage, operational efficiency, and cost savings, businesses have traditionally turned to third parties. However, as businesses extend their third-party ecosystems to perform fundamental tasks that are vital to operations, business models, and value propositions, a significant change is occurring. As a result, the dangers to the expanded company have increased.

As talent gaps emerge, as automation, analytics, and artificial intelligence (AI) progressively complement and enhance traditionally human-performed professions, businesses are reconsidering the nature of work, workforces, and workspaces. Many of these modifications can be influenced by third parties.

How Signzy Can Help?

With the increased data risks in the fintech sector, there is demand for securing the sensitive data of the customers successfully. But, the question is how do we do that?

That is precisely where we can assist you. 

We at Signzy, have a variety of AI-based solutions to digitally identify, verify, and authenticate customers, moreover helping in ensuring full security. Our solution for onboarding security has been deployed by more than 45 big and valued clients. These include leading banks, NBFCs, mutual fund managers, P2P lending banks, digital payment solutions, etc. Thus, making it promising and easier to trust us.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

 

Digital Identity in Fintech – Cyber Risks & Remedies

Posted on | by Signzian

A TransUnion Analysis found that digital frauds grew by 23.8% in the first four months of 2021 compared to the previous four months. At 60%, the financial services industry recorded the largest increase in online frauds.

To enable faster customer onboarding and an enhanced experience, Fintech providers and financial service companies are switching to digital identity technology. Also known as “Digital ID,” digital identification (or identity) is emerging as the new mode of identifying consumers lacking any legal form of ID documents.

Through this article, we shall look at the use of digital identity in the Fintech sector – and how to overcome its challenges.

Digital Identity in Fintech 

By using a digital ID, Fintech companies can unlock a huge market potential and offer a range of innovative financial services to their consumers, including financial inclusion of the “unbanked.” A Digital ID can streamline user authentication and improve the overall customer experience. 

Globally, governments and government agencies are putting together the infrastructure required for digital identity systems. For example, the Indian government has implemented the Aadhar-based eKYC registration process – which has reduced the cost of KYC registration from $5 to $0.70 for each customer.

How does this technology help in reducing identity thefts and cyber risks in the financial service sector?

  • Enabled by digital IDs, financial institutions can perform identity verification through the individual’s photo or video capture.
  • Digital IDs can also secure online transactions that are easier to manage instead of users having multiple online accounts that cyber attackers can target.

Why is Digital Identity Important in Fintech? 

Here is what makes digital identity important to the Fintech sector:

  • It helps in improving operational efficiency and eliminates “human error” from manual verification processes through building accurate customer profiles.
  • Increasing financial revenue by offering innovative products or services to previously unavailable consumers due to verification constraints.
  • Providing a superior user experience by removing any barriers to online transactions and securing user attributes.

Further, digital IDs can reduce the cost of customer service – by eliminating calling customers requesting for resetting their “forgotten” account passwords. At the same time, a digital identity can improve risk management by streamlining the eKYC process and safeguarding customer data from security breaches.

Digital Identity – Validation Workflow

How does digital identity work? A video-enabled digital identification process can help in identifying and validating individuals in the following ways:

  • Matching the person (on video) with the face on the ID document (example, PAN or Aadhar card).
  • A highly intuitive user interface for the best video interaction.
  • Use of video-based forensics for detecting any fake identity or spoofs.
  • High-end encryption for video transmission and communication.
  • Real-time capture of geolocation and IP address.

Digital Identity – Challenges

As stated by Phillip Malcolm of Refinitiv, banks and financial service providers must be able to “provide products and services (with increased scalability) that need to be technologically advanced.” Any large-scale disruption in anti-money laundering practices can result in irreversible damage – and large investments into digital identity technologies and infrastructures.

Additionally, with billions of dollars being transferred through online payments and eCommerce transactions, financial service companies will be regulated for compliance and penalized for any failures.

What is Signizy’s Role?

At Signzy, we believe that efficient digital identity solutions can go a long way in validating banking consumers and improving their banking experience. Designed for high-grade banking, Signzy’s VideoKYC solution is being used to onboard new banking customers according to financial regulations.

Through its partnership with the UAE-based Seed Group, Signzy is set to expand its footprint among banks and financial institutions based in the Middle East. With its global presence, Signzy has been instrumental in the digital transformation of leading banks and improving their global market share. This includes complete automation of their back-office operations and empowering their security infrastructure – among other capabilities.

Want to know how we can help? It is time to get in touch with us.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

New Norms For Digital Lending- How RBI’s Working Group Will Change The Terrain

Posted on | by Signzian

The report brings to the spotlight such shortcomings while providing a better framework for the sector. The relevant points from the report are explored below to create a better understanding of the proposal and the effect it can have on the industry.

Distinction Between LSPs and BSLs

There is a clear distinction between Loan Service Providers(LSPs) and Balance Sheet Lenders(BSLs). LSPs can be applications that provide borrowing options for the customers. They certainly need not be directly regulated but do require to partner with only regulated financial entities that can provide the services. BSLs on the other hand, provide loans and securely take credit risks. They are always regulated. This distinction allows LSPs to manage the front-end experience while BSLs manage regulatory compliance and risk.

A Ban On FLDG

First Loss Default Guarantee or FLDG instrument allows unregulated entities to offer loans to customers and take credit risk. The report strongly suggests against this backdoor entry. This is challenging to many new-age lenders as their processes are oriented around shadow lending. Additionally, neo-banking and DeFi(decentralized finance) models are also included in this section for a modal check. Fundamentally, the report directs that only regulated entities should hold taking credit risk options.

Eliminate Regulatory Arbitrage

The report advises to deem all products involved with credit risk as lending products and eliminate regulatory arbitrage. For example, most BNPL(Buy Now Pay Later) providers consider this option, not as a loan, and hence do not have apt KYC processing. They have no relation with the credit bureau.

Safety Of The Customer

In certain cases, the charges and rates can be as high as 100%(The normal being 40-45%). The working group recommends several actions to ensure consumer protection from such practices. These recommendations include:

  • Include all interests and charges as transparent APR(Annual Percentage Rate).
  • STCC(Short Term Consumer Credit)- must follow appropriate guidelines to prevent usurious charge rates.
  • Restrict very short-term loans with no instalments that are high risk.
  • Restrict Refinancing and over-indebtedness.

Regulated entities must also ensure fair treatment of borrowers by the LSPs involved, especially in the collection practices. All coercive behaviour is avoided to ensure confident customers and a healthy ecosystem.

Data Privacy

The consumer and not the entity is the owner of the data. All crucial lending decisions require explicit consent from customers for using their data. This extends to even any e-commerce platform which uses consumer data for underwriting decisions. This helps enhance security and overall data protection while maintaining consumer trust.

SRO And DIGITA

The report advises RBI to create a Self-Regulatory Organization (SRO) to govern activities and frame standards. It also recommends creating DIGITA(Digital Trust of India Agency). DIGITA will determine the minimum requirements and standards to verify compliance. If entities are not approved by DIGITA, they will be deemed non-compliant.

What Does This Mean For The Industry And You?

The initiatives outlined by the working group helps create a balanced framework that encourages innovation while protecting its consumers and minimizing financial risks in the system. This will help improve the dynamics in the ecosystem rendering growth in the industry. There are many venues that require clarifications and dialogue, but this preliminary report is a step in the right direction to achieve a more sustainable and secure environment. This ensures that the future of digital India is now… And it’s happening.

With the blessing of better lending ecosystems and safer financial environments comes the burden of stricter regulations and rigid compliance guidelines. If not careful, your enterprises can get affected and suspended due to bureaucratic complications. You can avoid this by availing reliable service providers for all your regulatory requirements. But how do you choose a good one? Opt one that gives you quick, safe, and customizable solutions. It should have a track record of good services and lots of options. This is why Signzy is the right choice for you. We can handle all your needs ranging from Video KYC to complete Onboarding Processes.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

RBI’s New PCA Framework for NBFCs

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The new Prompt Corrective Action(PCA) framework set forth by RBI for troubled NBFCs ensures market discipline and resilience of their financial health. In the past, PCAs were exclusive to banks. But, because many major NBFCs like SREI Group, IL&FS, DHFL, and Reliance Capital have run into financial crises over the past couple of years, this move comes at an apt time. The PCA framework targets to strengthen the supervisory tools from October 1, 2022. This will be based on the NBFCs’ financial position after March 31, 2022.

The primary objective of the PCA or Prompt Corrective Action framework is oriented and much mandated. It enables supervisory intervention at the precise and appropriate time, mandating the supervised entity to properly initiate and implement remedial measures. This is done to restore the supervised entity’s financial health in case of considerable deterioration. The PCA framework also acts as a tool for effective and strict market discipline maintenance.

Which are the entities included?

Previously, The PCA Framework applied to all banks operating in India. This includes foreign banks operating through subsidiaries or branches based on breach of risk thresholds of identified indicators. Now, via the RBI Notification dated December 14, 2021, It will also be applicable for all deposit-taking NBFCs, and other large NBFCs that position on the middle, upper, and top-most levels of the scale-based regulation for NBFCs of the RBI.

This includes  Investment and Credit Companies, Core Investment Companies (CICs), Infrastructure Debt Funds, Infrastructure Finance Companies, Microfinance Institutions, and Factors. But it excludes NBFCs not accepting Public money, Government companies, and Housing Finance companies. This would, therefore, apply to a smaller percentage of 10,000 NBFCs, most of which would be excluded from such tight regulatory purview as of now, till they grow up in size

What Is The PCA Framework

An NBFC will be placed under the PCA framework based on the Supervisory Assessment made by the RBI and/or the audited Annual Financial Results. However, the RBI can impose PCA on any NBFC(if they deem it fit) during a year.

For NBFCs-D and NBFCs-ND, indicators to be tracked would be Capital to Risk-Weighted Assets Ratio (CRAR), Tier I Capital Ratio (*refer to footnotes for definitions), and Net NPA Ratio (NNPA). For CICs, indicators that need to be tracked would be ANW/ARW(Adjusted Net Worth/Aggregate Risk-Weighted Assets), NNPA, and Leverage Ratio. The framework defines 3 risk levels with varying seriousness, criteria to enter either of these risk thresholds and RBI mandated controls (a summary of these is explained in the below table)

For further understanding, Capital Adequacy Ratio (or CRAR) is the ratio of the total capital(tier 1 and tier 2) and risk-weighted assets. For example, a house loan with strong collateral is inherently less risky than a loan given on a letter of credit and hence might need a higher capital cover in case it goes bad. This ratio is used to protect depositors. It also improves the efficiency and stability of financial systems around the world. Tier 1 capital is core capital. It consists of equity capital, intangible asset, ordinary share capital, and audited revenue reserves. Tier-1 capital absorbs losses and doesn’t require a bank to stop operations. Tier 2 capital is made of unaudited retained earnings, unaudited reserves, and general loss reserves. This capital absorbs losses in the event of any company entirely winding up or liquidating. 

 

What is the PCA framework’s impact?

These tight regulations would force the NBFCs to act in the best interest of public investors and make them better handle their financial books and asset quality. This, in turn, will make a provision of timely intervention to avoid a total wind-up and loss of money for equity holders and depositors. These steps are excellent for the current financial ecosystem as they provide a check on any company faltering in its functions. Prima facie, this might seem a bit too stringent, but in the long run, this will ensure better safety of both the customers as well as the companies.

About Signzy

Signzy is a market-leading platform that is redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering totally customizable workflows. It gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling 10 million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks.  It works with over 240+ FIs globally including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a strong global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and it has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

RRA

RBI Reduces Redundancy on RRA Recommendation

Posted on | by Signzian

The Reserve Bank of India withdrew over 100 previously issued circulars citing redundancy of their effects in current times on RRA Recommendation.

The move comes as a result of strong recommendations for the initiative from The Regulations Review Authority. This will reduce friction in financial transactions and other interactions. While this is a boost for the economy as a whole, prima facies, it does call for closer scrutiny to evaluate its actual extend.

The withdrawn circulars primarily focus norms concerning standards of:

  • Foreign Portfolio Investors and their Foreign Investments in India
  • RTGS- Real Time Gross Settlement
  • KYC- Know Your Customer
  • AML- Anti-Money Laundering
  • CFT-Combating of Financing Terrorism

RBI had set up Regulations Review Authority(RRA 2.0) in April 2021. The  RRA 2.0’s primary objective is reviewing regulatory advice and instructions while ensuring to identify and remove duplicate or redundant directives. It also streamlines reporting structure to decrease the compliance burden on REs(Regulated Entities). The RRA makes sure to revoke obsolete instructions while actively taking the effort to efface paper-based returns submissions.

The RRA has engaged in extensive communication and consultations with internal and external stakeholders in the industry. It conducted a review to simplify and easily implement supervisory and regulatory directives with these parties.

Mr. Swaminathan J, MD of the State Bank of India holds the chairmanship for the prime advisory group for RRA. The group itself was formed by the RRA shortly following its own constitution.

“The RRA has been engaging in extensive consultations with both – internal as well as external stakeholders, on review of the regulatory and supervisory instructions for their simplification and ease of implementation. Based on these consultations and the suggestions of the Advisory Group, the RRA has recommended withdrawal of 150 circulars in the first tranche of recommendations,” the RBI issued a statement.

With many of the surfeit roadblocks in financial interactions and transactions removed, this is a good time for companies and entities to take new initiatives. It is prime time for them to completely digitize and optimize their processes in the financial sphere.  Even the RRA promotes paperless submissions for applications and returns.

But the initial concern they have is to find trustable service providers for regulatory technology. Good resources, products, and services need to be available at a reasonable cost. Signzy can get you exactly that. We emphasize delivering the best regulatory and other financial technology services for you at state-of-the-art standards.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

AML and Blockchain – Towards Safer Transactions

Posted on | by Signzian

Money Laundering refers to the process by which financial transactions are conducted in a way that obscures the link between the funds and the origin. Did you know that money laundering makes up 2-5% of the global GDP, i.e. about 2 trillion? Despite all the measures, compliances, and checks, the increasing rate of financial crimes is proving to be a major roadblock for banks and other financial institutions, thus exposing the loopholes in the traditional financial ecosystem. Being in the business world, you need to be extra careful of these inadequacies so as to avoid any risks. And that’s why, Anti-money Laundering (AML) is the need of the hour for the identification of the customers, tracking, and preventing such crimes. 

AML is the set of laws or regulations made to prevent financial crimes and produce incomes through illegal activities. In today’s digital era, with the evolving complexity and volume of financial transactions, the current state of AML is unable to keep pace with it and track laundering activities happening around the financial ecosystem.

Use of Blockchain

The decentralized system of blockchain technology has proved to be a boon for effectively running cryptocurrencies and covering numerous use cases across businesses and industries.  Blockchain acts as an extremely secure platform to record and store data and information related to AML & KYC compliance. Blockchain-enabled platforms streamline AML/KYC processes on a decentralized ledger. Know Your Customer or KYC plays a significant role in AML as it assesses your business risks and complies with AML laws. 

Industry Challenges

Like every other market sector, even the anti-financial crime departments at most organizations lacked effective monitoring systems and risk-based frameworks during the pandemic era. Major challenges obstructing the AML compliance are as follows: 

Facts and Figures on Crimes that Happened in this Industry

Cases of money laundering are not new for any industry. Despite that, more than 57% of the Virtual Asset Service Providers (VASPs) approved by the Financial Action Task Force (FATF) still have weak, porous anti-money laundering measures. This basically means that their KYC processes and AML software are not at par with the security standards. In the year 2017, the global anti-money laundering software market stood at a whopping $879.0 million and now, it is projected to reach $2,717.0 million by 2025.

Impact of Blockchain on AML

Initially, a customer would be required to create a block that will consist of all of this data and information. These details are then encrypted and the customer will be provided with a digital passkey to see the data. This public blockchain ledger can further supervise, validate, and record every transaction’s complete history, wherein the readers and crypto miners get immediate notifications of transactions as they occur. In case, if one of the transactions gets unverified, it gets blocked immediately, thus preventing any further loss. Blockchain thereby doesn’t just monitor the entry and exit points of such transactions but also provides overall system analysis and reporting mechanism.

Case Study

In the year 2018, Netherlands‘ largest bank ING Group was fined $900 million for failing to spot money laundering. ING had violated laws in preventing money laundering and financing terrorism for years by not vetting the owners of client accounts and not tracking and analyzing the unusual transactions carried out through them. This came after January 2018 saw Citibank being fined $70 million for the shortcomings in its anti-money laundering policies. The reason behind this penalty was non-compliance with OCC’s 2012 order, due to which the bank failed to complete corrective actions to address AML compliance issues as required.  

How does Signzy Position Itself as a Tech Thought Leader and How Have We Adopted a Change to Make the System?

You can make use of reliable blockchain platforms to mitigate the risks caused due to shortcomings in AML regulations and delayed KYC due diligence. Procedures like AML and KYC can be effectively managed through the digital onboarding by Signzy. With customizable APIs and digital tools, Signzy assists you to conduct safe and compliant AML, KYC, and other requirements. 

Don’t wait for the mishap to happen. Connect with Signzy today, and ensure secured financial transactions. 

About Signzy 

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

Signzy Has Been Selected As A Winner Of The 2021 Inclusive Fintech 50 Competition

Posted on | by Signzian

Signzy has been selected as a winner of the 2021 Inclusive Fintech 50 Competition! The competitive initiative under Center for Financial Inclusion aims to acknowledge and promote fintech companies and startups during their early stages with a focus on financial resilience and inclusion. 50 meritorious winners are declared by an exclusive judging panel consisting of 22 sector experts. Some of the previous winners include GramCover, Jai Kisan, Smart Coin, and Happy.

The immensely competitive process included selecting 50 winners from 377 applicants across 77 countries. The primary parameters for qualifying included the company’s impact and advancements in credit, insurance, infrastructure, payments and savings, and personal financial management solutions. The selection process also takes into consideration the innovation, scale potential, and inclusivity that each applicant brings to the sector.

A major objective of Inclusive Fintech 50 is to create more visibility to companies and startups that focus on underserved customer-base such as sub-par income businesses, families, and individuals. Estimates show that this includes more than 3 billion people. 

We at signzy are delighted to receive this honor and intend to fast-track our mission to serve the world better through our services in financial technology. We would like to show our appreciation for the judges who made the decision, the Center for Financial Inclusion for such a collaborative effort, and all the sponsors of the Inclusion Fintech 50 initiative. We also congratulate all our fellow winners.

We thank everyone for their support during the process and in all good faith, hope you will celebrate this milestone with us.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

Signzy For Startups Partners With Zone Startups

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In yet another decision towards promoting promising new startups to get a better foothold, Signzy for Startups Initiative from Signzy is taking an active step. We are partnering with Zone Startups India, a part of the Ryerson Futures network, which operates outstanding accelerator programs around the world. The partnership is set to bring about benefits to young and promising ventures.

The partnership aims to synergize the portfolio startups of Zone Startups with the benefits of the Signzy for Startups program. This will be a boost to the startup ecosystem as Signzy’s cornucopia of resources can now be accessed by Zone Startup’s portfolio members. The access is as per the prescribed policy. It is an initiative to empower a globally inclusive approach to entrepreneurs across hemispheres.

Our venture, Signzy For Startups helps new startups and entrepreneurs flourish in the expanding ecosystem. We provide our services, which are customizable to the use of smaller companies and startups. This ensures that their potential does not go unnoticed due to insufficient resources. Zone Startups, with a similar vision, yet different processes help startups create secure and sustainable growth through accurate investments.

Most startups in India possess impressive core ideas and criminally untapped potential. Unfortunately, due to a lack of vector and insufficient guidance, they end up unacknowledged and unrecognized. Our Partnership with Zone Startups will create more optimized solutions and resources for newer startups, specifically in the early stages of development. Zone Startups provide resolutions for investment-oriented hurdles while Signzy helps them with required resources. 

Signzy For Startups And How We Bring About Change

Signzy For Startups is the latest initiative from Signzy that aims to help young organizations with a quicker GTM and secure digital customer onboarding. We use our technology & innovative solutions to help them have a broader scope with maximum impact. 

We make your customer onboarding journey simple, quick, and secure. Being a global no-code AI platform for KYC and onboarding services, we help you automate your customer onboarding journey with real-time APIs. We do this with our 200+ Fintech APIs and Nebula- our state-of-the-art AI-based no-code journey builder.

How is Zone Startups Helping Entrepreneurs

Zone Startups is on a mission to better the world by providing opportunities for the world’s most exceptional people building defining companies. With a stunning network all over the world and partnerships with multiple fortune 500 companies, Zone Startups provide strategic and tactical guidance for entrepreneurs and startups seeking to drive market validation, access to investors, advisors, and corporate partners. The partnership with Signzy will help Zone Startups provide a boost to their existing clientele. Collaborations like this are essential to drive the startup ecosystem and enable faster GTM and growth of early-stage startups

What This Means For The Sector

Signzy and Zone Startups have established entities in their respective fields of expertise. The fact that a partnership is established with the sole purpose of helping startups create better processes and strategic structures is a catalyst in the ecosystem. Such an environment helps startups create a symbiotic structure and sustainable growth.

This is an excellent opportunity for startups to help themselves fortify their services. The initiative builds bridges for excelling and tailoring apt solutions for respective enterprises.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

Connecting With Co-Lending- RBI’s Financing Model Is Bringing NBFCs, HFCs And Banks Together

Posted on | by Signzian

India’s aspirations for developing an entrepreneur-friendly economy largely depend on provisions of financial assistance for promising ventures. The major hurdle a new vendor seeking to establish his business finds in the country is mostly in the form of financial challenges. Even for the working community, financial aids and loans are very necessary solutions. That’s why 77% of working individuals in India rely on personal loans to merely make ends meet.

Most of these loans are for medical emergencies, MSME expenses, or family needs that may include education, weddings, and home renovations. The majority of the rural population does not have proper access to avail loans at banks. Hence, they seek private firms and local lenders.

As a resolution to the problem, RBI approves co-lending initiatives. Banks and Non-Banking Financial Companies(NBFCs) are exploring such venues, to generate a synergistic opportunity. This model of lending can certainly help India’s priority sectors in a great aspect.

Although co-lending processes have been around for some time in the BFSI sector, in November 2020, the Reserve bank of India furnished guidelines to ease non-bank lenders’ liquidity crisis. It enhances credit flow to dynamic and, productive sectors. Banks and NBFCs are increasingly exploring opportunities for co-lending

What Is The Co-Lending Model(CLM)?

The co-lending model includes the involvement of a bank and an NBFC. Both the lender firms partner to disburse loans to their customers. The RBI’s CLM model approves all registered NBFCs, including HFCs(Housing Finance Companies) to co-lend loans by partnering with banks.

The process involves Banks leveraging balance sheet strength which houses the majority of the whole loan amount while the NBFCs and HFCs enable origination and smooth collection. In essence, banks can lend to registered NBFCs and HFCs. These Institutions pass it on to individuals and organizations in priority sectors. This is because NBFCs and HFCs have greater reach than banks in many parts of the country.

The customers enter into a loan agreement with NBFCs while the latter acts as a single-point interface for the same borrowers. This agreement contains all the features of the prescribed arrangement including the roles and responsibilities of banks and NBFCs. The lenders decide upon an all-inclusive, reasonable interest rate for the ultimate borrower.

The target of this initiative is to better the credit flow of the priority sectors, particularly the underserved and even the unserved sections. This is possible with the coupling of banks providing a lower cost of funds for the customer while the NBFC utilizes their greater reach.

In the statement issued in November 2020, RBI has also emphasized that it strongly prescribes a part of the bank lending must help developmental activities. These include numerous divisions under the priority sector such as agriculture, housing, MSMEs, etc. The norms determine net bank credit(NBC) for each type of bank. Private and public banks lend 40% of NBC while foreign banks lend 32% of their NBC.

The Benefits Of Co-Lending

CLM initiative helps banks lend more funds to regions and sectors where they do not have sufficient reach. The more established reach from NBFCs helps banks meet the total PSL(Priority Sector Lending). The NBFCs on the other hand receive better and top-rated borrowers in their clientele.

It allows banks to expand and increase their lending business while giving NBFCs to source clients, disburse a part of the loan and perform credit appraisals. The end borrower gains accessibility to loans and borrowing options at affordable and competitive rates. In effect, a mass of the population receives inclusion in the booming financial ecosystem.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

Peer-2-Peer Lending- A Future Formed From Fundamentals

Posted on | by Signzian

With a revolution of digitization in the country since 2020, India is set for changes in the P2P lending market. IndustryArc predicts the market size to exceed $10.5 billion by 2026. This is after considering 21.6% CAGR during the forecast period between 2021 and 2026.

Peer-to-Peer(P2P) Lending, follows the practice of lending money to businesses or individuals by other individual lenders. This is usually through online services that match lenders with borrowers. Since 97% of these transactions are online now, P2P lending is synonymous with online P2P lending. 

Traditionally banks are the first option people consider to obtain funds. Perhaps a personal loan at an affordable price might do the trick. Unfortunately, the process of qualifying for a loan is rather tedious and time-consuming. This is why up-and-coming businesses and entrepreneurs widely use P2P lending to acquire sufficient funds for their ventures. This helps them get the investments they need without the hassle of availing bank loans.

How It Works And What Are Its Benefits?

P2P lending enables borrowers to avoid the troubles of bank bureaucracy. They are no longer at the mercy of a bank or financial institution. Instead, a fellow lender helps them raise the money. The lenders get decent returns on their investment too. The transaction is possible with the help of an intermediary P2P platform.

Once both parties divulge their credit history, the P2P platform ensures that neither are serial defaulters. After a thorough risk assessment(With algorithms on past borrowings, etc.) they formulate an idea on the chances of incomplete repayment. They assign a score for the parties. Once a participant is listed, they can list their requirements including the funds they need, the interest rate and the duration.

Individuals without credit history or formal banking methods can also participate. But the P2P platform makes an extra effort for verification. But this is not much of a headache for the borrower when compared to the hurdles in traditional bank loans. Since the P2P platforms provide unsecured loans, it is easier for finalizing the transaction for the participants. As a matter of fact, this is one of the major reasons why it is flourishing. P2P is gaining the attention of youngsters across metros.

The platforms also promote P2P lending as an investment opportunity.  Prima facie it may seem not apt that P2P lending presents itself as an investment, considering that most individuals are the primary interactors. Most platforms advise focusing on the returns and not the nature of the arrangement. The interests are constant and the involved parties are already verified. Defaulting is minimal, and thus it makes sense.

The platforms can offer returns of up to 14% to their investors. Investors can customize these investments according to their needs. They can select one specific borrower or diversify with multiple borrowers.

What’s The Catch and How Can Signzy Help?

The P2P platforms usually charge a fee from the borrower and sometimes the lender.  If everything goes well, the borrower will promptly return the capital with a good interest rate. All parties are satisfied after the process.

But if the borrower defaults, that’s when the problems occur. Things can go wrong rather swiftly. Even though the lender can choose the borrower depending on their risk ranking, many times these rankings may be inaccurate. This can be due to inefficient verification methods or procedures. The fact that there is no collateral here, is relevant. Most of the time, the lender does not even have a recourse.

P2P lending utilizes the fundamentals innovatively. They are useful as long as they are safe. But how do we make sure that it is safe? What measures can the platform as well as the lender take while organizing such a venture?

We at Signzy specialize in providing AI-powered RPA platforms for financial services. We digitize your processes while making sure that each individual is properly verified without fail. P2P platforms that avail of our services get state of the art security and the lenders who wish to enter the P2P marketplace can seek our brand too.

Signzy can completely automate your back-operations decision-making process into a real-time API. This is possible due to a combination of ‘Nebula’ — Our no-code AI model builder and our Fintech API Marketplace of over 200+ APIs. Today we work with over 160+ FIs globally including the 4 largest banks in India and a Top 3 acquiring Bank in the US. Globally we have a strong partnership with Mastercard and offices in New York and Dubai to serve our customers in the 2 geographies. Our Product team of 120+ people is building a global AI product out of Bangalore.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

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