Key focus area of the conversation:
India has been witnessing a sharp surge in the financial services industry of late. Different business segments of Wealth Management and Capital Markets are getting deeply penetrated amongst the retail, HNI and institutional investors alike.
However, advisory based asset management can only be scaled by platforms supporting the ecosystem – advisors, brokers and distributors in a connected environment. Compliance and regulatory requirements are integral parts of digital first products. Thus, regulators and fintech companies will have to converge to serve the end customer in such a fast evolving Wealth Management ecosystem.
The regulator (SEBI here) has set up an excellent environment, where the regulatory sandbox is a great initiative. They should engage proactively to realize the challenges of startups, to make the best incubation ground for innovation.
There is a perception that Indian regulations are complex, especially in the Capital Markets and Wealth Management space. But important to note that Indian demographics is diverse and complex, and the regulator’s focus is always to protect the end customer. In evolving platform led businesses, the intent is very important. If the underlying intent is towards bringing positive value to the end customer, the regulator should take charge to create an enabling environment to support the ecosystem.
This we have seen first hand as innovators in building platform led business in the Wealth Management segment. The payment sector has got the maximum benefits led by UPI in product based digital journeys and digital payments have become exponential.
We have the best regulatory framework, infrastructure, India stack, CKYC and other RegTech services. Given RegTech becomes a critical area in Product Management in the digital ecosystem, focus should now be to compound on this and regulation should converge with product journeys in the best interest of the customer to protect as well as provide great products and experience.