Category: Regulations

Welcome to our Regulations category, a comprehensive resource meticulously designed to assist you in navigating the intricately woven tapestry of regulatory norms governing the fintech industry. With regulatory frameworks being in a state of constant evolution, staying abreast of the latest changes is crucial for businesses and professionals operating within the financial sector.

The articles housed within this category delve deeply into an expansive range of regulatory topics. We explore everything from the shifts in KYC/AML guidelines to the influence of data privacy legislations on financial institutions. Our aim is to provide a multi-faceted understanding of these regulatory transitions and the implications they carry for businesses.

At Signzy, we recognize the significant role regulatory compliance plays in the financial industry. Our innovative solutions are crafted with a keen eye on the most recent regulatory requisites. Our aim is to help businesses remain compliant without having to sacrifice efficiency or compromise on delivering exceptional customer experiences.

Whether you’re a compliance officer diligently ensuring that operations align with regulations, a fintech entrepreneur navigating the challenging waters of the industry, or a professional immersed in the financial sector, our Regulations category offers invaluable insights into the ever-changing regulatory landscape.

We cordially invite you to join us as we embark on an exploration of the world of fintech regulations. Through our articles, we aim to provoke thought, spark discussion, and provide guidance on how to navigate the complex regulatory environment effectively. Join us on this enlightening journey as we untangle the intricate web of regulatory norms shaping the world of fintech.

Generational Shift in Banking

The Generational Shift is Redefining Banking Industry

Posted on | by Signzian

In the world of banking, there’s a new kid on the block: Generation Z. While the industry has been adapting to millennial customers for some time now, Gen Z brings a whole new set of challenges and opportunities that banks can’t afford to ignore. But it’s not just about catering to younger generations – older customers also have unique needs and preferences that must be considered. In this blog post, we’ll explore the generational gap in banking and how it’s affecting the industry. 

What is the generational gap in banking?

The generational gap in banking refers to the differences in attitudes, behaviors, and expectations of different age groups regarding financial services. Each generation has unique values and experiences shaping their money management approach.

For example, Baby Boomers tend to prioritize stability and security over risk-taking. They may prefer traditional banking methods and are likelier to value personal relationships with bankers.

On the other hand, younger generations like Millennials and Gen Z are more inclined towards technology-driven solutions. They expect seamless digital experiences that allow them easy access to their finances on the go.

The rise of social media also plays a significant role in shaping these generational differences. Younger customers increasingly rely on peer reviews before deciding where they bank or invest.

Banks must recognize these diverging attitudes to cater effectively to all age groups. The key is finding a balance between high-tech offerings for younger customers while not alienating older ones who still value human interaction above all else.

How has the generational gap in banking affected banks?

The generational gap in banking has had a significant impact on the way banks operate today. With three distinct generations – Gen Z, Millennials, and Gen X – each having different preferences and expectations regarding banking services, banks must adapt their strategies to meet the diverse needs of these groups.

One major effect of this gap is that traditional brick-and-mortar banks are losing relevance among younger consumers who prefer digital experiences. This means that banks need to invest more heavily in technology to stay competitive.

Another consequence is an increased focus on digital identity verification and know-your-customer (KYC) processes. Banks need to be able to verify customers’ identities quickly and securely, particularly as younger generations become increasingly adept at fraud prevention measures.

Age verification systems have become critical for financial institutions looking to appeal to younger customers while adhering to regulatory requirements. By implementing robust age verification protocols, banks can ensure compliance with legal obligations and protection against underage account opening or usage.

The generational gap in banking presents challenges for traditional financial institutions seeking to remain relevant in an ever-changing industry. However, understanding the unique needs of different customer segments, developing innovative technologies, and implementing effective KYC/AML protocols tailored to young people’s lifestyles will help them succeed going forward.

Gen Z versus Millenials versus Gen X

There’s no denying that different generations have unique perspectives on banking. Gen Z, Millennials, and Gen X have different attitudes toward money management and financial institutions.

Gen Z, born between 1997 and 2012, are digital natives who expect convenience and instant gratification. They prefer online banking over visiting a physical branch and demand mobile apps with seamless user experience. This generation is also more open to alternative forms of payment, such as cryptocurrencies.

Millennials, born between 1981-1996, are known for valuing transparency in their banking services. They want to understand the fees associated with their accounts and often prioritize socially responsible investments. However, they may struggle with debt from student loans or credit cards.

Gen X represents those born between 1965-1980 who grew up without technology but adapted quickly after its introduction. They value stability in their bank accounts and stick with traditional banks rather than fintech startups.

Understanding the differences between these three generations can help banks tailor their services accordingly to serve each group’s needs better. From digital identity verification systems for Gen Z customers to offering debt counseling programs for Millennials struggling with student loans – each generation presents unique challenges that require tailored solutions from banks.

Conclusion

The generational gap in banking is a complex issue requiring banks’ careful consideration and attention. As digital natives like Gen Z continue to enter the workforce and demand more personalized digital experiences, it’s clear that traditional banks must adapt to stay relevant.

By implementing age verification systems and utilizing customer data to personalize their offerings, banks can bridge the generational divide and meet the needs of all customers – regardless of age.

Ultimately, by embracing change and staying on top of emerging technologies, banks can remain competitive in an ever-evolving landscape while providing exceptional service to customers across all generations.

 

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.

Compliance in Banking

How To Make Compliance Your Bank’s Competitive Advantage

Posted on | by Signzian

Banking regulations are ever-changing, and staying compliant is essential for financial institutions, but it doesn’t have to be a burden. In fact, by leveraging compliance activities as a competitive advantage, your bank can increase its profitability and gain a leg up on the competition. In this blog post, we’ll look at how banks can leverage compliance to create an edge in the industry. We’ll discuss managing risk, using customer data safely, developing innovative products and services, and more—all while staying compliant with the law. So, if you want to make compliance your bank’s secret weapon, this blog post is for you!

Understanding compliance

Today’s consumers are looking for a banking experience that is personalized, convenient and offers value. In addition, they want to bank with an institution that understands their needs and is willing to work with them to find solutions. A recent study by Boston Consulting Group found that 43% of consumers would switch banks if their primary bank did not offer the digital capabilities they were looking for.

Banks must provide a superior customer experience to keep up with the competition. That starts with understanding compliance. Consumers expect banks to protect their personal information and comply with regulations. They also want transparency from their financial institution. They must know that their bank works in their best interest and protects their money.

Compliance is more than just following the rules. It’s about creating a culture of compliance within your organization. Everyone from the CEO to the tellers must comply with regulations. This can be achieved by establishing clear policies and procedures, providing training and education on compliance topics, and promoting a culture of ethical behavior.

When done correctly, compliance can be a competitive advantage for your bank. In addition, consumers will trust that you keep their best interests in mind and feel confident doing business with you.

The benefits of compliance in bank

The McKinsey Global Institute estimates that advanced analytics (AA) and artificial intelligence (AI) in banking could generate up to $1 trillion in annual economic value globally. Credit underwriting, fraud detection, and trade surveillance are some of the opportunities related to risk management. 

Banks are under pressure to do more to comply with rules and regulations in a world of increasing regulation. But, at the same time, they are looking for ways to improve their customer experience and grow their business. A compliant bank meets all the requirements of the regulators and provides an excellent experience for its customers.

There are many benefits of being a compliant bank:

  1. It allows you to avoid costly fines and penalties.
  2. It helps you build trust with your customers by showing that you are committed to protecting their information and meeting their needs.
  3. It can give you a competitive advantage in the marketplace by differentiating you from other banks that may not be as compliant.

Fourth, being compliant can help you attract and retain the best talent. Fifth, it can help you manage risk more effectively. And sixth, it can help you improve your bottom line.

So, consider these six benefits if you’re looking for ways to make your bank more compliant. They might make compliance your bank’s competitive advantage.

Compliance technology

Technology has always been crucial to compliance, from simple audits to more complex monitoring and analysis. But with the ever-changing compliance landscape, technology must constantly adapt to new regulations and threats.

That’s where compliance technology comes in. Compliance technology uses software and other tools to help organizations meet their compliance obligations. This can include everything from automating regulatory filings, tracking employee training, and monitoring customer interactions for signs of fraud or money laundering.

With the right technology, banks can meet regulatory requirements and gain a competitive advantage. By using technology to automate repetitive tasks, banks can free up staff time for more strategic work. And by using data analytics to identify risk areas, banks can proactively address potential problems before they arise.

When it comes to compliance, technology is your friend. Investing in the right tools can make compliance more uncomplicated, efficient, and effective—and give your bank a leg up on the competition.

Conclusion

Compliance is becoming increasingly important in the banking industry, and making it your bank’s competitive advantage can help ensure sustainable long-term success. By providing that your compliance strategy is up-to-date and effective, you can create an environment of trust with customers and regulators alike. Additionally, a clear understanding of regulatory requirements will enable you to adapt to any industry changes quickly, ensuring your unique competitive edge remains intact.

New VPN Norms – Government’s Take On Privacy

Posted on | by Signzian

VPN has always been a subject of debate in India. 

As per AtlasVPN’s report, India had over 348 million VPN downloads in 2021. Despite having such popularity in 2021, the government recommended a VPN ban in India for privacy concerns. Although the ban didn’t occur, the Indian government has introduced some new VPN norms or regulations for users, mainly for VPN companies. 

In April 2022, India’s Computer Emergency Response Team (CERT) announced a new regulation that VPN companies in India will have to collect and store customers’ data for at least five or more years. 

Unsurprisingly, these new VPN Norms are creating a lot of buzzes. How will this new law affect VPNs? How will it impact users? Are VPNs illegal in India? There are lots of questions arising. 

To answer all your questions, we’ve compiled everything you need to know about the new VPN norms in India. But before digging deeper, let’s start with the basics: What is a VPN? 

What Is A VPN?

A virtual private network (VPN) is a technology that allows you to connect securely to private networks over public networks. It creates an encrypted connection between your computer and a server so that your internet traffic is encrypted and can’t be intercepted by anyone else.

With a VPN, you can access websites in countries where they might not be available, or you can use it to get around censorship (a lot of countries have strict firewalls that block specific sites), secure remote work, and browse the internet anonymously.

What Are The New VPN Norms?

The key takeaways from the new VPN rules are:

  • According to the new law, all VPNs must gather and store user data (user names, physical address, email address, and phone numbers) for five or more years. 
  • VPN companies also have to keep a log of the reason behind using the service. 
  • VPNs should record all the IP addresses used by users to register. 
  • Along with VPN services, virtual service network providers, data centers, and cloud service providers have also been requested to keep track and store similar user data. 
  • VPN services must report cybersecurity incidents to CERT within six hours of becoming aware of them. 

What Is the Government’s Take On These New VPN Norms?

The main purpose of the government behind imposing these new VPN rules is to improve the “cyber security posture” and ensure people have access to a “safe and trusted internet”.

The CERT also informed that they had identified gaps in safeguarding against online threats. That’s why they’ve published the new norms to prevent cyber attacks. 

“If you are a VPN provider, if you are a data centre operator, if you are a cloud provider, and if you’re an enterprise, you have an obligation to know who’s using your VPN infrastructure… If there is a detected cyber incident or cyber breach — from one of the people using your VPN or your cloud or your data centre, it is your obligation to produce the data,” – Rajeev Chandrasekhar,  Union Minister of State for Electronics and Information Technology

How The New VPN Norms Impact Users & Companies 

The new rules received a lot of backlashes from the VPN companies. After all, the primary goal of VPN services is not to collect users’ personal information. 

The new norms will force these companies to store customer data which will increase costs and affect user privacy. 

India is among the top 10 VPN users around the globe. Various companies and individuals use VPN services to safely access private WiFi networks, remain anonymous, and many more. 

Several techies, students, and companies use VPNs to protect their data from third-party apps.

But with the new norms, they must go through a KYC process while registering a VPN. So, all VPN users will have their private data exposed to the government. 

It is also unclear how the government may use this data in the future. This raises a concern about the right to privacy for every individual. 

The Internet Freedom Foundation said the new norms lead to more concerns, such as the private enterprises and government “having more data than necessary”.

Several VPN companies like NordVPN, ProtonVPN, SurfShark, and ExpressVPN, have said that they are planning not to follow the newly imposed rules of India. After all, privacy is the main reason behind users investing in their premium plans. 

As per several VPN companies, they’ll continue to offer their no-logs policy to the users and threaten to pull back their service from India. 

The Bottom Line 

Despite all the backlashes from cybersecurity experts, stakeholder companies, and business advisory groups, the Indian government is pretty much firm on their new VPN norms. 

“If you don’t want to go by these rules, and if you want to pull out, then frankly … you have to pull out.” – Rajeev Chandrasekhar,  Union Minister of State for Electronics and Information Technology

The privacy experts have sought public consultation on this matter, asking for more tech industry involvement to find a solution that suits every individual. Lastly, it’s needless to say that it will be interesting to see if the VPN companies manage to implement the new norms before the deadline of September 25, 2022.   

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, 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.

KYC for Online Gaming Platforms

Why Mandatory KYC for Online Gaming Platforms?

Posted on | by Signzian

Mandatory KYC for Online Gaming Platforms – is what the Ministry of Electronics and Information Technology has drafted amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. It states that due to rapid growth in online gamers, mandatory KYC for Online Gaming Platforms & gamers is to guarantee that Gaming Companies adhere to Indian laws and provide users with protection against potential harm.

Gaming has become a part of everyday life for many people, from casual mobile games to more hardcore console and PC gaming. As the popularity of gaming continues to grow, so does the importance of having an appropriate level of safety and security for gamers.

In this blog post, let’s explore what this proposal entails and why it is important. We will also discuss how it may affect both casual and professional gamers.

What is the government proposing for Online Gaming Platforms?

The Ministry of Electronics and Information Technology (MeitY) proposed an amendment to bring online gaming under the ambit of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021

The amendments seek to ensure due diligence from online gaming intermediaries so that users are not exposed to any activities breaching Indian law – such as gambling or betting – and also require a registration mark on all online games registered by self-regulatory bodies.

The Draft Rules

  1. A gamer must be informed of all online games offered by the gaming intermediary, as well as its policy regarding withdrawals and refunds of deposits made with the expectation of winnings. Also, how winnings will be determined and distributed, as well as the fees the user will have to pay for each game. 
  2. There should be a mandatory know-your-customer norm for verification (KYC).
  3. A user will need to be aware of the potential for addiction and the financial risks associated with each game.
  4. As part of the registration process of the game, the self-regulatory body must set up criteria for its content to protect the gamer from harm, including self-harm.
  5. Only games that are approved by the self-regulatory body will be permitted to operate legally in India.
  6. Five members will create the self-regulatory body’s board of directors, with expertise in online gaming, public policy, IT, psychology, and medicine.
  7. It is responsible for ensuring that the registered games do not contain anything that is not in the interest of India’s sovereignty, integrity, defense, security, friendly relations with foreign countries, or public order or that incites a cognizable offense.
  8. The Centre should be informed about the online games registered by all self-regulatory bodies, along with a report detailing the criteria for registering a particular game.

Why is there a need for such rules?

It is for protecting users from potential harm caused by skill-based games. 

  1. Innovation: As online gaming platforms are getting regulated as intermediaries and are subject to due diligence requirements, the online gaming sector will be promoted and innovation will be encouraged.
  2. Women Gamers Safety: Approximately 40 to 45% of Indian gamers are women, which makes keeping the gaming ecosystem safe all the more important.
  3. Because they generate revenue that needs proper regulation: In 2025, the Indian mobile gaming industry is to generate $5 billion in revenue. The industry grew at a CAGR of 38 percent between 2017 and 2020, versus 8% in China and 10% in the US.
  4. Credibility & Transparency: In addition to ensuring greater transparency, consumer protection, and investor confidence, this framework will boost the legitimate domestic online gaming industry.

What are the pros of KYC for Online Gaming Platforms?

The proposed mandatory KYC for Online Gaming Platforms has generated a lot of debate, with some people arguing that it is a necessary step to prevent underage gaming and others asserting that it will infringe on the privacy of gamers. Here, we take a look at the pros of the proposed policy: 

1) It would help to prevent underage gaming & Fraud: The proposed policy would require online gamers to verify their age before being able to play, which would help to prevent minors from accessing age-inappropriate content.

2) It could help combat cheating: By mandating age verification, it would become more difficult for people to create multiple accounts to cheat in online games.

3) It would promote responsible gaming: Making online gamers verify their age would encourage them to play responsibly and not engage in excessive gaming.

Our take

The government’s proposing mandatory KYC for Online Gaming Platforms & gamers is a step in the right direction toward protecting citizens from online threats and fraud. With the implementation of this measure, users can be assured that their identities are secure when engaging with other players or playing games online. It will also help prevent illegal activities such as money laundering and identity theft which have been particularly rampant on gaming websites lately. In essence, this proposed measure could be immensely beneficial for both players and regulatory authorities alike by promoting safety and security in the digital world.

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

Cross-Country Payments With RBI’s UPI- A Detailed Look At The Central Bank’s Future For International Remittance

Posted on | by Signzian

India was the top recipient of remittances in the world in 2021, receiving over USD 87 billion. This represented a 4.6% increase above its remittance inflows from prior years. This is because remittances only represented 3.1% of the nation’s GDP in 2020.

Cross-country remittances are growing, and the Reserve Bank Of India(RBI) acknowledges this as they are deciding to act on it. Their initial plan is to add newer options to the 6-year-old Universal Payments Interface(UPI) that includes international payments. Prima facie is undoubtedly a step in the right direction. Yet we must look closely to see how it will impact the sector.

What Is RBI’s Initiative?

The Reserve Bank of India (RBI) stated in its annual report for FY21 that it is working on using UPI for cross-country transfers among jurisdictions.

RBI has looked into the idea of connecting UPI with comparable systems in other jurisdictions, particularly in the G20 countries, to improve cross-country and international payment arrangements. In addition, the apex bank claims to participate in the discussions over the fundamentals and roadmap of UPI and cross-country remittance with the Committee on Payments & Market Infrastructures (CPMI) and Financial Stability Board (FSB).

What Are Cross-Country Remittances?

For the uninitiated, cross-country remittances are transactions between individuals, companies, or banks in at least two countries. At the moment, cross-country and international payments are settled through a bank with branches in both nations. The bank converts money to local currency and charges users a commission of up to 10%. As a result, the procedure is time- and money-consuming.

What Is The Future Of Cross-Country Remittances In India?

The cornerstone of the cross-country payments ecosystem in India is likely to be laid by a similar agreement between PayNow, based in Singapore, and UPI’s governing organization, the National Payments Corporation of India (NPCI). The integration of UPI with PayNow has been formally announced, even though the efforts with different nations are at varying levels. According to the RBI, it should start operating in the second half of 2022.

The interlinking lowers the cost of cross-country remittances and will further anchor commerce, travel, and remittance flows between the two nations. It might also be used as an illustration of how different fast payment systems can be linked to sending money quickly and cheaply.

Essentially,

  • NPCI, an RBI initiative, has collaborated with several foreign organizations to share the UPI infrastructure but prevents cross-country payments.
  • The cross-country payments ecosystem in India is likely to be built around PayNow, a Singapore-based company, which is the sole partner of UPI.
  • According to the RBI, efforts are in various phases with different countries, but cross-country remittance via PayNow will start after July 2022.

UPI For Cross-Country Remittances

One of India’s payment settlement infrastructures with the quickest growth is UPI. The interface enables peer-to-peer payments across banks and platforms with a single pin. UPI recorded transactions of INR 10.4 Lakh Cr. in May 2022 alone because of its scalability and simplicity of usage.

As a result, numerous nations took note of the stack and made plans to implement the UPI functioning model in their countries. For this, NPCI’s international division, NIPL, has agreements with several banks in nations like the UAE, the US, Nepal, China, Japan, and several regions of Africa. However, so far, these partnerships have been signed to share the infrastructure and not enable cross-country payments.

For instance, in August 2021, NIPL announced its partnership with UAE-based Mashreq Bank to benefit 2 Mn+ Indians who travel to UAE for business or leisure every year.

In July 2021, NPCI partnered with the Royal Monetary Authority (RMA) of Bhutan to initiate UPI-based payments in Bhutan and benefit an estimated 200,000 tourists from India who travel to the mountain nation annually.

Other successful international partnerships in this space include Discover Financial Services (DFS) USA, Japan Credit Bureau (JCB) Japan, Union Pay International (UPI) China, PPRO Financial, UK, and Network for Electronic Transfers (NETS), Singapore, and Liquid Group, Singapore.

Bottomline

Once RBI implements this aspect of UPI, transactions will boom, and fintech enterprises need to be ready. A simple digital adaptation to accommodate the transforming technology won’t cut it. All processes will have to qualify for international standards, and better security measures must be implemented. All this needs to be done without compromising the experience of the customer.

If you seek to improve your processes and be ready for the looming change, we at Signzy might be able to help out. Our No-code AI-driven resources that are fully customizable are built for your needs. Check it out here.

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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