How to be compliant as a Fintech
Updated: Jul 19
The Fintech industry is growing and is challenging the current traditional financial services. Regulation and compliance in this industry is complicated, which is why we’re here to help you; we take the complicated and make your life easier by providing you with a governance, risk and compliance (‘GRC’) solution to your business.
You will partner with reliable industry practitioners, who have extensive experience in the risk and compliance industry, having worked for leading financial services institutions with over 30 years experience.
The Edmund Group is committed to streamlining processes and providing expert risk management and compliance consulting to Fintechs, at any point of their business lifecycle.
Are you a financial technology (fintech) business?
A financial technology company - or Fintech company - is a business that provides financial services through technology. Successful Fintech examples include those that provide banking services to its customers through an app, those that provide an investment or funding platform, or even a budgeting app.
The simple difference between a fintech and a financial organisation is that, although both are providing financial services, a fintech is accomplishing it through technology. For instance, Fintechs operate through apps or computer software instead of a physical environment, such as a bank branch.
How will financial technology change in the next several years?
Fintechs will lead the way with their innovative strategy and business model - if they're not already doing it. Before, new entrants in the financial sector were bound to fail as the road to success was challenging and the industry was volatile and risky for a start-up. Now, Fintechs are fast-moving and revolutionary, leading in the business world by using innovative technology and strategy, and adapting to current trends.
This new fintech industry is already driving economic growth by opening up new markets. It encourages financial inclusivity. Processes are agile and fintechs now provide considerably more diverse solutions in finance than traditional providers.
The financial sector is gradually changing. It's becoming more and more digitalised, people are using apps to access and control their finances. Digitalisation is exposing customers to fraud risk, and fintechs need robust security systems and controls. Which is exactly what we assist our clients with and why a good compliance framework and a risk assessment is essential for a fintech.
Why is fintech compliance consulting important?
Fintechs are here to shake it up.
Fintech businesses are booming in this day and age, with the industry becoming more competitive each day. Digitalisation and easy user experience is at the forefront for any type of business, and Fintechs excel in that. Which is why these companies are now challenging traditional Financial providers and services.
However, caution should be applied. There are many issues that a Fintech, no matter the stage of its lifecycle, has to overcome before establishing itself in the market, which is why compliance consulting is important. One of them could be potential risk mismanagement or non-compliance with current regulations.
We provide a range of consulting services to create a safety net for any Fintech start-up, scale-up or established financial services business. It is important that Fintech businesses are:
compliant with regulations and regulatory expectations,
understand and successfully manage the risks they will face in order to meet their objectives
and have in place high-quality and effective strategies, policies and governance, compliance and risk management frameworks.
Which service is most significant to Fintech start-ups at the start of their business journey?
As an expert GRC firm, we always recommend Fintech authorisation as the first step when it comes to risk and compliance management.
This is because Fintech start-ups must be authorised by the Financial Conduct Authority to perform regulated financial services, such as providing credit, electronic money or payment services.
The cost of getting it wrong.
But what can a regulatory breach cost you? It could be a fine but it could also be your company. We are dedicated to preventing that.
We know that risk advisory and compliance regulation doesn't come cheap. We also know how to protect your Fintech and your assets from mismanagement and deregulation. We believe in a streamlined process for all Fintech entrepreneurs that also adds value and security to their business.
Partner with The Edmund Group and secure your Fintech too!