Focus of compliance till date has been about interpreting the rules and regulations prescribed by Central Bank and aligning business around the same.
RBI as well as Government have been pro-digital and rules have been changing continously to make the country completely digital.
With focus shifting to digital, the compliance frameworks in the bank needs to be reviewed and re-baselined. Compliance units of the banks are still saying “NO” to digital business ideas based on old approach (mostly paper trail based).
There is a need for digital specialists in Compliance units to help in executing the business. These specialists will pro-actively review changes in regulations and work closely with business teams to create compliant digital products fast. This team will focus on products like Digital Lending, Robotic-Advisory, Fintech partnerships etc.
Kotak bank could launch 811 Savings product within 4 months of new regulations on eKYC based deposit accounts. Most other banks did not move fast enough thereby giving space to others.
Banks focusing digital strategy have to revamp their compliance units now… Else, they will become bottleneck in digitising the country.