Fintech startups in India have a running joke that the banking regulator, the depository financial institution of India (RBI), can’t go per week without issuing a replacement circular for them. It comes as a surprise if it does.
The growing number of regulatory-compliance requirements within the country has sent the fintechs scurrying to Deloitte, EY, PwC, and KPMG—the Big Four of the auditing business.
If the key to getting rich in an exceedingly gold rush is selling shovels, then the massive Four are selling advice to assist these fintechs dig themselves out of multiple regulatory holes.
Besides auditing and consulting, regulatory advice has become a brand new money-spinning vertical for the massive Four. EY, specifically, has been leading the charge. the general advisory business in India has grown bigger than its auditing business. With a 23% year-on-year growth since 2019, advising clients and ensuring they adjust to current policies is a pretty future path for the firm.
With the announcement of each new regulation, the consultancies send a note to their clients explaining its significance and impact. looking on the services they're hired for, the consultancies then take a look at the client’s business and recommend changes to be fully compliant.
The opportunity is exclusive because they need the sting over both legal and top service industry firms—McKinsey & Co, Bain & Co, and Boston Consulting Group (commonly remarked as MBB). this kind of labor is simply too resource-intensive for legal firms and too small a ticket size for MBB.
In today’s story, we deep dive into the emergence of this new vertical, which is made on the business of fear??