
Top 4 Challenges Facing Fintechs
The Fintech sector has experienced exponential growth since its emergence. It has proved to be highly disruptive and transformative as consumers are now offered more choice and control over how they handle their finances. As a consequence it is gaining the attention of regulators and compelling the company's board of directors and executive management team to implement a robust risk management regime.
Let's take a look at the top 4 operational risks facing fintechs:
1. Regulatory Non-Compliance Not all fintechs fit neatly into pre-existing regulatory regimes and with regulators focusing on this sector, fintechs need to ensure they are compliant with new and old regulations such as anti-money laundering, know your customer and data protection laws. Those that engage in cross border transactions need to be on top of regulatory processes and seek appropriate licences in other countries. The financial services sector is heavily regulated and ignoring the legal aspects of this industry can lead to fines, sanctions, and increased oversight from regulators



A failure to appropriately manage the above risks will ultimately affect thesurvival of the organisation. Speak to CMX to find out how we can help you manage your risks with insurance specifically designed for fintechs.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Cindy Lau.
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