Data Meets Regulation: Taming Complexity Like a Pro

The forecast for banks and the financial services sector in Asia Pacific in the year ahead is not looking bright – headwinds in the form of rising costs of capital, lower interest rates, and decreasing return on equity are slated to erode profitability.

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This is compounded by an increasingly complex regulatory environment that banks are scrambling to comply with as governments race to mitigate the risks around the use of AI when handling financial consumers' data.

India too is facing a similar regulatory shift. Last year, the RBI ramped up its crackdown on non-compliant institutions, emphasizing stricter compliance measures and enhanced consumer protections. Alongside these enforcement actions, the evolving regulatory landscape has been further shaped by privacy laws like the Digital Personal Data Protection Act (DPDPA) and the Information Technology Act, which have emerged over the past five years. These regulations have compelled financial institutions to reassess their data management practices, ensuring greater accountability and security in handling personal information. As these laws continue to evolve, financial institutions must remain agile to keep pace with the changing requirements. On top of it all, these regulations are constantly being updated by the authorities. Banks have to factor in the necessary costs to stay up to date with the latest changes and to implement the mandatory controls to satisfy these requirements.

As financial institutions buckle under the pressure to drive growth and at the same time, manage their data with greater precision and accuracy, a hybrid data platform becomes especially valuable for identifying and minimizing compliance risk.

By combining the best of on-premises and cloud environments, hybrid cloud architectures empower financial institutions to access data across environments seamlessly, enabling them to better maintain compliance, enhance security, and adapt to regulatory changes – all while optimizing costs and ensuring business continuity.

Keeping a tight leash on data