Regulatory tech, aiming to streamline compliance, makes inroads in Africa

Regulatory technology, also known as regtech, is starting to make inroads among African businesses and government entities that are adopting a new generation of digital tools designed to streamline the process of compliance with regulations such as data protection laws.

While adoption of regulatory technology is still in a nascent phase in Africa, usage is expected to rise, particularly as internet use becomes pervasive and policies dealing with personal data become a norm across the continent.

A rapidly changing legal landscape and an explosion in data generated by online apps, though, is complicating mass uptake of regulatory applications, according to industry insiders.

Regulatory technology is designed to help companies be compliant with laws or industry regulations. Companies that do business in the EU, for example, must comply with the GDPR, and African countries are in the process of adopting their own data protection laws, such as South Africa’s POPI (Protection of Personal Information Act).

In particular, sectors such as banking, insurance, and healthcare face complex laws regarding how they manage and verify users’ data. A growing number of African tech companies are offering technology to help eliminate the manual tasks that up to now have been needed for  compliance with such laws.

Banks begin to implement KYC technology

“We are seeing a lot of banks being able to transition into digital verification,” said Esigie Aguele, CEO of VerifyMe. The Lagos-based company is one of a new crop of African tech vendors that are using emerging technology such as image recognition and AI to help businesses deal with KYC (know your customer) laws.

Regulation