Rise of Smart Regulation: Impact of Regulatory Technology on Digital Lending in India

Regulatory Technology (RegTech) has developed financial services in India, especially for the digital lending sector. PwC reveals that 80% of consumers trust digital lending platforms with integrated RegTech solutions more.

RegTech has brought transparency in lending procedures because of real-time monitoring, ensuring compliance with regulatory guidelines and reporting. With increased risk management capacity, borrowers’ trust has deepened in digital lending products. Loan default rates have declined by 30% through this.

This has improved the onboarding experience for customers, with faster KYC & identity verification processes, resulting in a 40% reduction in the loan application process time. 55% of an increase in loan disbursements was observed last year. EY reveals that RegTech solutions have been implemented by 75% of fintech institutions to streamline their compliance procedures. Per Deloitte, this has reduced time wastage in regulatory reporting by 50%.

RegTech automates compliance tasks to ensure seamless keeping up with changing regulatory norms, allowing Indian digital lenders to make room for frictionless borrowing for customers. This has led to a 25% increase in consumer satisfaction rates.

Per Accenture, this automated adherence to regulatory guidelines has brought improvement in 90& financial institutions. An impressive reduction of 35% in fraud was observed, making RegTech reliable for all digital lenders in India.