Innovative Digital Regtech and Suptech through Fintellix for Financial Industry

Fintellix, a Verisk Financial business, is a leading provider of data management platform, regulatory solutions, and supervisory technology to the financial services industry.

Verisk (NASDAQ: VRSK) is a leading data analytics provider serving customers in insurance, energy and specialized markets, and financial services; we are part of the S&P 500 Index and Nasdaq-500 Index. Following are the excerpts from the Interview with the President of Verisk Financial | Fintellix, Shailendra Mruthyunjayappa-

You are one of the leaders in RegTech space – tell us a bit about your company and your journey.

The journey of Fintellix began in 2006 as a Bangalore based start-up with the vision of solving data analytics and regulatory reporting challenges of financial institutions. Over the next 10 years, we grew to become a trusted partner to several leading financial institutions, we raised venture capital from marquee investors, and were acquired by Verisk Financial in early 2017.
Today, we have built a client base of renowned brands in India, US, UK, Middle-East, South Africa, South-East Asia, and Australia.

How do you define the terms “RegTech” and “SupTech”?

RegTech is a vast area covering software applications for the regulated entities that help them comply with various regulatory requirements; such regulatory requirements span compliance with prudential norms, submission of various regulatory reports, risk assessment and management, customer and counterparty due diligence, monitoring transactions for fraud & financial crime, and extends to emerging areas such as managing data as per data privacy guidelines/ laws.
SupTech refers to software applications built to enable regulators, supervisory agencies and industry bodies to disseminate information and guidelines, collect and process data, conduct inspections and reviews, assess and manage risk, and perform other supervisory activities.

What is your vision for the business?

We want to be the leading provider of data management and digital regulatory platforms – transforming data collection at supervisory end, streamlining data preparation & submission at regulated entity end, and building a collaborative environment for secure and seamless data exchange with embedded industry insights.

Can you provide a brief overview of your product offerings?

  • Fintellix Regulatory Reporting Platform helps integrate regulatory data into a standardized schema and enables “codeless” conversion into multiple regulatory formats. Country-specific pre-packaged solutions reduce the implementation effort and standardizes the return preparation as per the standard interpretation of regulations.
  • Fintellix Loan Loss Reporting Solution caters to the needs of financial institutions to meet ECL/ALL/CECL/NPA guidelines via automated, accurate and timely identification and classification of loan losses, and calculation of allowance.
  • Fintellix Borrower Assessment and Monitoring Solution is a comprehensive system that helps assess and monitor borrowers for credit risk using holistic data combining financial institution’s portfolio, and multiple external data sources including company filings, ratings, bureau data, legal, etc, and generating insights/ signals and recommended actions.
  • Fintellix Data Management Platform offers the ability to manage the entire data lifecycle, or to bridge gaps and integrate into the enterprise data flow. The highly scalable, flexible & configurable platform is aligned to BCBS239 principles and can be used to manage system & non-system data.
  • Fintellix Supervisory Platform is an integrated data collection and management platform for supervisors and industry bodies to collect data from regulated entities/ participants in a controlled and collaborative environment with multi-entity workflows and validations.

What are your differentiators?

What differentiates us is our focus and solution approach. We are a team of 300+ with subject matter expertise in the areas of data management, risk management and regulatory reporting and analytics as it applies to the banking and financial services industry. We have productized solutions that help us deliver this expertise in a structured, standardized, and scalable manner. Our integrated, scalable, flexible and configurable platform enables us to solve multiple regulatory requirements and keep pace with the accelerating regulatory changes.

How do you keep your products updated to regulatory changes and technology changes?

The requirements of financial institutions around data management, risk management and regulatory reporting keep evolving with regulatory changes, changing business models, as well as the advancement of technology.
Our products are continuously updated to ensure we support ongoing compliance as per regulations/ guidelines, and also benefit from advanced technologies. Our solutions work on relational databases, appliances, on the cloud, and on big data; we have embedded machine learning models that can help continuously improve the insights delivered, and we are using open standards wherever possible. We continue to track emerging technologies that can be used and/or applied in the RegTech and SupTech world.

Where do you see RegTech headed?

As the world moves into a digital era, RegTech will need to evolve to become more comprehensive, standardized and automated, covering needs of conventional financial institutions and new-age fintechs, spanning various emerging regulatory themes such as personal data protection and consent management, fraud and cybercrime, integrity and transparency, portability and interoperability, etc. I believe there is a need for regulators, regulated entities and technology providers to work collaboratively to create data definitions, establish open standards and setup data exchanges. We have already seen some progressive regulators moving in this direction, and also taking steps to engage with the ecosystem by conducting tech-sprints and launching sandbox environments. This will only accelerate further in the coming years. I can visualize a financial system where regulators are able to access homogenized data on-demand from all parties in the ecosystem and perform supervisory activities in real-time.