Home Just In Our Due Diligence AI reduces error, fatigue, bias and deviations: SignalX’s Govind Balachandran

Our Due Diligence AI reduces error, fatigue, bias and deviations: SignalX’s Govind Balachandran


SignalX is an AI-driven risk intelligence platform which helps businesses reduce regulatory and reputational risk, keeping them ahead of increasing regulation. In an interaction with CIO Axis, Govind Balachandran, Co-Founder and CEO of SignalX, says that over the last year, SignalX has emerged as the most preferred brand in the sector of insolvency & restructuring for bidder and resolution applicant credibility verification and diligence.

1. Give a brief about your brand or company. What kind of products/services are you into?

SignalX is an AI-powered risk intelligence platform. Our proprietary software runs comprehensive risk & credibility analyses, on any given target (company or individual), in just 48 hours. SignalX is a trusted aide for risk, audit, valuation, compliance, legal and forensic teams across industries and domains. We provide detailed financial, legal, regulatory compliance and reputational analyses on potential investments, vendors, suppliers, and business partners. Whether a counter-party needs to be analyzed for a turn-key project or a long-term engagement, SignalX is the one-stop solution for your trust-building exercise. SignalX aims to build a global counterparty risk intelligence platform catering to risk requirements across industries, to evolve and be recognized as a trusted leader in Compliance & Risk Assessment across the RegTech sector, throughout the globe.

2.How is an AI-driven approach proving to be a gamechanger in an industry which was defined by a manual approach?

Quick Due Diligence is critical for businesses to establish and maintain trust and communication with counterparties. Traditionally, Due Diligence would involve manually reviewing 100s of contracts and 1000s of public documents to verify aspects like financial stability, corporate structure, supply chains, litigiousness, regulatory compliance and reputational risks associated with any entity. Manual Due Diligence is a time and labour-intensive process with a high margin for errors & leakages that could lead to a bad decision, ergo a bad investment, even if only that of one’s time.

An AI-driven approach to running diligence reduces error, fatigue, bias and deviations that might arise due to something as simple as a difference in perspective. It simultaneously juxtaposes the larger picture against the nitty-gritties to identify any patterns that might be missed while under human evaluation. Using technology also provides the scope to manage variations and standardise provisions in internal and external contracts, thus making it easier to identify instances of noncompliance and highlight unfavourable provisions. Lastly, it saves time, which implies that it saves money. This is a crucial factor for businesses that are going increasingly digital and global, especially in a post-pandemic reality.

3. Digital adoption has definitely increased across the board for businesses in India since March last year. What have been some prominent COVID related trends in the Regtech space and any learnings from your own experience?

The COVID-19 pandemic has brought on a lot of changes in every industry and Regtech is no exception. There has been an accelerated pace of digital adoption and businesses of all sizes have had to readjust to ensure continuity, within weeks, if not days. Regulations and policies are being updated across industries & governments, in response to the pandemic. While this has opened up numerous possibilities, it has highlighted the barriers of geographic location & benchmarking more prominently than ever before. As businesses are adapting to these changes, the scope and critical need for reliable and remote Due Diligence is more pressing than ever.

Some trends that we have observed over the period of the pandemic include –
1. Regtech as an industry is coping, but is not thriving, owing to the lack of automation as it operates currently,
2. More & more companies are taking up external vendors to manage their risk requirements (including something as basic & widespread as KYB)
3. Company budgets on Regtech have expanded, meaning more & more people are looking out for solutions to simplify compliance and regulation for themselves
4. On-site checks are tough, if not impossible in most cases, leading to a widespread need for virtual qualification to establish that first handshake

4. What are some of the industry challenges that you anticipate on the horizon?

In our opinion, the need for benchmarking protocols, policies & processes is steeply on the rise. With dispersed geographies working on collaborative projects, bridging that expectation gap is the key issue that most giants across the world are trying to resolve. SignalX is aiming to standardise such policies & processes based on any company’s internal requirements (such as in the case of qualifying vendors for overseas export).

Another area that is being worked on heavily, yet has a long way to go is the domain of robotics and NLP to derive insightful data from legalese. Legal & policy-based documentation often does not speak well to the layman and requires a professional to garner details from it and pass on consumable activities for a company to implement. Yet, seeking help is not as simple as it was in 2019. With the rise of AI-enabled tools to cater to specific areas where the workforce might require help, we also see an increased need for integration amongst such tools.

5. What are your upcoming plans for the second half of 2021?

SignalX aims to enable businesses to build trust faster and transact fearlessly by building long-term relationships. Over the last year, we have emerged as the most preferred brand in the sector of insolvency & restructuring for bidder and resolution applicant credibility verification and diligence. This year, we are working to educate the market on how our solution answers the customised needs of legal and forensic teams, across the nation and internationally. We are constantly innovating to answer the needs of investment arms, banks, VCs, corporate development teams and verticals engaged in partner/ vendor management. SignalX aims to drive the integration of platforms & tools across domains. As a growth-stage company, our operations and data have always been spread across different platforms, which with the “new normal” has been a boon. We are constantly working towards making that integration seamless, not just for us, but for all our users as well.

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