Financial institutions introducing products across borders are plagued by one dilemma after another: the frameworks for regulatory compliance differ by jurisdiction, and staying up-to-date on shifting rules takes a toll on resources. A product that is cleared in one country can be noncompliant in another. An investment product that is compliant today can be wanting tomorrow if the rules shift. Conventional methods view compliance as a checkpoint, a last check before introduction, causing backlogs that slow market entry and risk regulatory sanctions on institutions.
The price of these delays is more than money lost. Compliance checks consume thousands of man-hours annually in large banks. Rule infractions causing errors can result in millions of dollars in fines. More significantly, reactive approaches to compliance cannot anticipate new risks and leave organizations vulnerable to violations that materialize after products have reached customers. As financial services become online and borderless transactions become faster, outdated approaches no longer scale.
Prakhar Mittal is a product development and management consultant. He has over fourteen years' experience across the life sciences, consumer products, and financial services sectors. He identified a significant issue in the way institutions deal with the regulatory rulebook. Rather than viewing compliance as one such approval step, he redesigned it as part of the supply chain, a continuous process that is covered across the life span of a product. It led to a patented framework that transforms the compliance function from a slow response mechanism into one that can vet financial products across multiple segments before launch.
Adhering to regulations in supply chains
The invention by Mittal, "Automated Financial Product Compliance System for Banking and Regulatory Management," was officially registered when the Indian Patent Office issued the patent in April 2025. In the patent, a plan that applies supply chain principles more specifically, just-in-time validation and perpetual quality control, is proposed as a way of complying with regulations on financial products.
The system functions through interrelated components that collectively form what Mittal refers to as a compliance supply chain. It is maintained through a rule engine that tracks the current legal requirements across varied markets and refreshes itself as the laws evolve. A parser compares key information extracted from the designs of financial products, such as interest levels, charges, and mandatory information, against the regulations. Automatic checks occur at all stages of the development process, from initial design through approval and launch. A machine learning module inspects patterns that can forecast potential risks of non-compliance before they occur. A central dashboard displays real-time information and keeps records of the checks on regulations.
Mittal's system is distinct from others that test solely for compliance at launch. It entails validation across the whole product lifecycle. This approach is like quality control in the manufacturing supply chain, in which issues are identified before production, not after products have reached the market. By identifying gaps in regulations beforehand, the system prevents costly redesigns and shortens time to market.
Multi-jurisdictional flexibility and forecasting ability
The design addresses a particular challenge that cross-border financial institutions experience: varied rules in varying locales. A trade product that adheres to U.S. banking regulations could require modifications to accommodate European Union regulations or Asian market demands. Banks typically maintained separate versions of products per region or delayed launches as local rules were reviewed by local legal teams.
Mittal's system helps with changing jurisdictional mapping. When a bank creates a product for different markets, the system automatically checks it against the important rules and points out any problems. This feature allows banks to create products that are ready to follow the rules for their target markets instead of fixing them after they are designed.
The predictive layer sets Mittal's system apart from other compliance software. Its machine learning aspect looks back at past regulatory changes, enforcement action, and industry developments to identify new risks. If a location will have more stringent lending disclosure requirements, the system notifies product teams before new regulations go into effect. This allows banks time to make changes ahead of time instead of panicking after the regulations have taken effect.
The Indian Patent Office's publication of the invention shows that it is new and not obvious, which are the legal rules for getting a patent. The careful examination process proved that the framework included new ideas that were not seen before, setting it apart from small upgrades to current compliance tools.
School learning and practical use
Mittal supported his patent with research articles delving into adjacent ideas. In March 2025, he wrote "API-First Banking: Evolution of Customer Journey Analytics" in the International Journal of Advanced Research in Science, Communication and Technology. In the peer-reviewed article, the author analyzes how including the integration of compliance and data integrity as ongoing processes in the digital banking infrastructures boosts operational efficiency as well as the level of regulatory trust.
The article discusses large questions about banking infrastructures that incorporate APIs. It points out the observation that compliance is best when integrated into the design of the system at the beginning, rather than introduced later. The article gained wide attention in the scholarly community, as the work was cited in the papers of other scholars just after publication. This rapid acknowledgment is evidence that the work resonates well with researchers who work on the intersection between financial technology and regulations.
The pairing of a publication with a patent reveals Mittal's dual contributions toward practical innovation and theory. Yet the patent develops a system that is industry-ready and resolves existing operational issues. The paper situates his thoughts in the broader debates on digital transformation in financial services, influencing the way scholars and professionals conceptualize compliance architecture.
Lessening systemic risk and simplifying operations
The framework affects more than just single institutions. By making compliance checks the same for all product stages, the system lowers overall risk in financial markets. When banks use products that include built-in regulatory checks, the chance of major compliance failures goes down. This stability helps not only institutions but also customers who depend on the trustworthiness of financial services.
The framework helps compliance teams by dealing with limited resources. Manual regulatory reviews need legal knowledge, time, and teamwork among different departments. Automating regular checks allows staff to concentrate on complex questions that need human decision-making. Banks that use similar systems see big drops in delays and errors related to compliance. However, Mittal's framework adds features, especially the ability to work across different jurisdictions and use predictive analytics that earlier solutions did not have.
The centralized dashboard section enhances auditability, a worldwide need increasingly emphasized by regulators. Should the regulators or the auditors require documentation that demonstrates the process of compliance, the system provides detailed audit trails explaining how products were tested at each phase of development. It reduces audit preparation time and provides regulators with comfort in the practices of institutional compliance.
Broader implications for regulated industries
Though developed for the financial services sector, the framework is applicable across other regulated industries. Pharmaceutical businesses dealing with drug approval activities across markets experience analogous multi-jurisdictional compliance issues. Medical device businesses need to validate products against different safety levels. Consumer product businesses have to contend with divergent labeling and safety expectations.
Mittal's approach treats compliance as part of the supply chain through regular checks and risk forecasting. It sets a template for such industries. Conceptually, the plan of covering regulatory checks at the time of product development, rather than at the stage of final approval, addresses the universal challenge in regulated sectors of achieving just the right blend between speed-to-market and adhering to complex, dynamic regulations.
The system also addresses broader digitalization trends. As businesses automate operational functions, compliance often has been kept as a separate, manual process. Mittal's work illustrates the way that regulatory compliance can be part of automated flows, making innovation more enabled by, rather than hindered by, compliance.
The future
Financial services rules are always changing, with new rules for digital money, decentralized finance, and data movement across borders. These changes make it harder to follow the rules, which makes automated systems that can predict outcomes more important. Future versions of compliance rules will probably use better machine learning models that can understand regulatory language and foresee enforcement focus.
Mittal's framework establishes foundational principles that remain relevant as these technologies advance. The idea of a compliance supply chain, continuous, predictive, and lifecycle-integrated provides a conceptual model for building systems that adapt to regulatory change rather than merely reacting to it.
Conclusion
Prakhar Mittal's patented framework of compliance transforms the way that financial institutions handle regulations. He no longer considers the matter of compliance as one of the mere approval steps, but rather as a part of the supply chain. It continuously checks products, accommodates varying laws, and forecasts new risks. The Indian Patent Office recognized the uniqueness of the invention, and his corresponding work is cited by academicians, which indicates the significance of his work.
For banks navigating increasingly complex regulatory environments, the framework offers a path toward operational efficiency without compromising adherence standards. For the broader field of financial compliance, it introduces concepts of predictive validation, multi-jurisdictional mapping, and lifecycle integration that challenge conventional approaches and offer new directions for innovation. As financial services continue to globalize and regulators impose more stringent requirements, Mittal's contribution provides both a practical solution and a conceptual framework for rethinking how institutions build regulatory trust into their products.
