Risk and compliance in the Fintech space

There's a shift in the financial market – more bright founders are creating unique ideas, but the level of security and risk is also increasing. It's no longer enough to launch a product and think about the intricacies of risk management down the line.

That's why we are proud to have ComplyAdvantage as one of our partners for the Fintech Foundation incubator. ComplyAdvantage is an industry leader in anti-money laundering technology, using machine learning, AI, and natural language processing to manage risk obligations.

To find out more about security in the Fintech space, we spoke to Kanisha Patel, Head of ComplyLaunch at Complyadvantage, about Fintech startups needing to think about compliance from the get-go.

Incorporating risk into your product's design

"Firstly, Fintechs need to be able to mitigate risk in real-time," says Patel.

"The speed of change in fraud and money laundering is hard to keep pace with and those that rely on manual solutions will inevitably see more of this type of activity."

It's not easy to incorporate layers upon layers of security checks into a Fintech product or idea. And how do you even go about structuring security when you need to think about building out your core concept's features and selling points?

Thankfully, ComplyAdvantage has the know-how and tech to help any Fintech reduce security risks.

"With ComplyAdvantage, everything is API driven and automated, meaning Fintechs can keep on top of changes and reduce risk. As an example, we check for sanctions updates every 15 minutes."

It's just one of the reasons we are proud to have them on board, along with their incredible insights into the startup landscape.

In addition, having access to ready-made banking API technology, resources and integrations needed for launch - such as BaaS services, a card programme provider or other banking partners - makes it much easier for fintechs to get their MVP off the ground.

We’re also acutely aware of the compliance challenges fintechs face when getting authorised and using an agent’s licence. Often, many early-stage startups won’t have a dedicated Compliance Officer and may rely on the CFO wearing many hats. Providing access to compliance knowledge is one of the incubator programme's essential ingredients.

Fintech startups need solid support

"We’re very aware that it’s becoming much harder for founders and entrepreneurs in the current economic climate."

"There’s less funding for companies – securing seed money is more challenging than ever, and getting to Series A will be tough unless without a market-proven MVP or strong product-market fit," adds Patel.

These sentiments align with the ideals of the Fintech Foundation incubator programme. Our goal is to equip Fintech startups with all of the knowledge and support to bring their product to launch faster, while understanding just how to run and operate a business.

"Early-stage Fintech startups will inevitably be forced to do more with less. This is why it’s so important to us that we help maintain, support, and progress the strong Fintech ecosystem that has already been created through programmes such as the Fintech Foundation."

During the Fintech Foundation incubator, cohort members will participate in regular workshops and one-on-one sessions hosted by our partners. They will also have full access to our technology stack to focus on their core product.

It's all about cooperation

ComplyAdvantage understands just how powerful cooperation can be – leveraging the expertise of third parties to enhance your Fintech startup's offering.

"Everyone is playing a unique role in the ecosystem, and your proposition will be far more powerful if you work with specialised partners to support what you do."

"That’s part of what makes programmes like the Fintech Foundation invaluable – the startups who sign up can make the right connections, and leverage diverse expertise from lots of different providers. What’s more, everyone on the programme is invested in their success."

Participants can expect all this insight and more in workshops delivered by the ComplyAdvantage mentors. We’re really excited to help set participants up for success by forging a launch pathway, enabling them with the tools and resources they need, and reducing the time to launch.

We look forward to seeing our partners and the incubator's cohorts collaborate and harness each other's ideas. Thank you to Kanisha Patel for answering our questions.

Need more reasons to get your Fintech startup off the ground? Find out more and here.