In the past decade, it would have been difficult for businesses to move into new markets. Or even to start a new business in other countries. This is because various compliance processes need to be observed and completed. At best, this process is stressful, time-wasting, and cumbersome. So, reg techs came in to simplify the compliance process.
Reg-Tech is an abbreviation of Regulatory Technology. Management of the regulatory process in the financial industry via technology. All Reg-Tech does is help companies report, monitor, and comply with regulatory processes. In the same way, it empowers them with advanced software that streamlines the compliance process with existing regulations and laws. RegTech works by automating repetitive tasks: monitoring transactions, risk, and regulatory changes in real-time; generating reports; and alerting compliance staff of potentially fraudulent activity. Such automation allows compliance personnel to focus on high-value work instead.
Generally, Regtechs can apply to various industries and sectors. To offer them solutions around compliance processes, auditing, fraud, and risk management. Its Solutions are aided greatly by the application of technologies such as 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 and Data mining and analytics.
In all, Regtech solutions provide also data management services and ensure that Regulatory filings are transparent and efficient. Below are some Regtech Companies and startups in Nigeria:
Voyance
Voyance was founded by Ebot Tabi. And launched its operations in Lagos, Nigeria in 2019. The startup provides companies with data management services. Again, it evaluates data to produce results that are used in making informed business decisions via AI-enabled tools.
Its unique fraud management solution for Fintechs is called Sigma. Sigma is used to address business problems such as transaction monitoring, compliance and anti-money laundering. Lastly, Sigma allows businesses to innovate and scale quickly without increased risk.
Indicina Technologies
This Regtech was Co-founded in 2018 by Yvonne Johnson and Yemi Ajao. It is also located in Lagos. Indicina is an Africa-focused digital lending platform that provides lenders with an analytics-driven credit decision.
Through its proprietary machine-learning decision engine, it helps lenders quickly identify and reject potentially bad loans during the application and underwriting process.
Ultimately, enabling lenders to make real-time lending decisions with improved risk outcomes. Indicina is a regtech solution because it aids loan origination and monitoring, portfolio management, and fraud management among others.
Sidebrief
This regtech was co-founded by Anuoluwapo Eunice olopade, seun Odunyemi and Abdulsamad Rahman in 2019. This startup makes it easy for African business owners to start and maintain their businesses. Simply by removing lengthy paperwork, legal complexity, and hidden fees. Again, it provides the tools for founders to start and scale across borders from a single interface.
For example, it helps companies with their incorporation, tax registration, tax returns, overall structuring, business-specific certifications and industry licences/permits.
Chiniki Guard
Chiniki Guard is an AI-based security solution, that was founded by Abdulhakim Bashir in 2019. Chiniki Guard is an Artificial Intelligence security solution for retail stores, and supermarkets to monitor, detect and alert shop owners of shoplifting as well as suspicious behaviour in real-time.
Its solution assesses in-store video data classifying the details and actions of every individual 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
Conclusion
It is crystal clear that some startups focus on different aspects of a regtech. For example, Indicina focuses on assessing risks and their management for lenders. Likewise, others can focus on monitoring transactions, risk, regulatory changes in real-time, lengthy papers works, generating reports, employee management etc. What is important is for companies to identify their needs and find a specific startup that solves them.
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