By Ankit Ratan, CEO, and Co-founder, Signzy
In the rapidly evolving landscape of the digital world, businesses are increasingly embracing the online sphere to reach a broader customer base and enhance their overall efficiency. However, this digital transformation is not without its challenges such as cybersecurity concerns. The fear of cyber threats and fraudsters exploiting technological advancements hinders the seamless adoption of digital practices. Establishing digital trust is crucial to address these concerns and pave the way for widespread digital adoption.
At the heart of this transition lies the profound significance of DIGITAL TRUST – “the confidence users have in people, technology, and processes’ ability to create a secure digital world.”
Digital transformation benefits and challenges
The advantages of moving businesses into the digital domain are substantial, ranging from scaling operations to improving accuracy, expanding reach, facilitating ease of transactions, and enhancing overall customer experience. However, this transformative process involves accessing sensitive customer data, especially in sectors like Banking, Financial Services, and Insurance (BFSI), where safeguarding financial information is paramount. The challenge lies in ensuring the security and integrity of this data, instilling confidence in users to embrace the digital ecosystem.
The importance of digital skills for securing trust
One way to address the challenges for businesses is to secure a digital trust among the users. Digital literacy becomes a key component for businesses looking to adopt and integrate new technologies securely. These skills enable businesses to stay abreast of evolving cybersecurity threats, implement continuous improvement measures, and fortify their overall security posture. As Artificial Intelligence (AI) becomes more prevalent, businesses need to embrace these new technologies while simultaneously protecting their customers’ data through enhanced technological infrastructure. This will help businesses to be in compliance with the evolving regulatory landscape and also provide robust security measures against cyberthreats.
Regtech solutions
Addressing the challenges of data security, Regtech solutions are playing a pivotal role. These innovative solutions offer services such as e-KYC, identity verification, and fraud detection and prevention, leveraging advanced technologies such as AI and ML. Regtech solutions mitigate the risk of unauthorised access to sensitive information, simplify onboarding processes through biometric authentication, and assist businesses in overcoming data security challenges. The digital trust can be strengthened by companies across sectors through digitally verification of users and authentication of the online transactions.
Government initiatives
The enactment of the Digital Personal Data Protection (DPDP) Act has further provided clarity to businesses on ‘what data can be used and for what duration?’. This brings much needed clarity in the digital ecosystem and promotes ethical data processing practices. Specifically, the act focuses on verifying children’s age for online services, introducing data breach notification protocols for tech companies, and imposing penalties for non-compliance. The DPDP Act contributes to building trust in the digital realm by enhancing transparency and trustworthiness in data handling practices.
Collaborative approach
Building digital trust requires a collaborative effort between businesses, fintechs, and regulatory bodies. This partnership is pivotal in strengthening digital trust within the ecosystem and promoting increased digital adaptability. With businesses across diverse industries transitioning online, a customised approach to digital infrastructure is essential. Regtech solutions, tailored to the unique requirements of each industry, help businesses stay compliant with relevant regulations and standards.
As more businesses shift to the digital ecosystem, the risk of bad actors exploiting online transactions and compromising user data becomes more pronounced. Authenticating users during onboarding and ensuring data safety are paramount to building digital trust. Innovative solutions provided by Regtech, such as e-KYC, digital identity verification, and fraud prevention and detection, serve as crucial tools for businesses to establish and maintain this trust. Regtech’s specific use cases for each industry cater to their unique needs, providing a comprehensive and tailored approach to data security.
Conclusion
In this era of digital evolution, securing the digital realm is not just a necessity but a shared responsibility for businesses, regulators, and technology providers alike. The integration of innovative Regtech solutions, adherence to regulatory frameworks like the DPDP Act, and a collaborative approach between various stakeholders are essential steps toward building and maintaining digital trust.
