5 FinTech Strategies for Regulatory Compliance

| Updated on July 15, 2024

Do you think someday banking and transactions will be completely digitized? Well, in a tech-driven world, anything is possible, but not without following regulatory compliance. 

This is the prediction of many financial experts, who often stress the importance of creating fintech strategies for achieving long-term goals. 

Businesses survive successfully by staying updated on changing compliance policies,  integrating advanced data privacy solutions, and adhering to AML laws. 

Also, there are many short-term financial solutions like CreditNinja.com for users to maintain a healthy budget. The collaboration of finance with tech companies is full of challenges. 

Therefore, in this article, we will reveal 5 Fintech strategies that will assist your business to stay afloat and prosper. 

Importance of Fintech Compliance 

Fintech or Financial Technology is the future for many organizations as it means following the governing laws of business methods and technologies. It includes a set of policies that will benefit the customers, investors, and the banking firms in the following ways:

  • Protecting data privacy by using advanced software.
  • Preventing cyberattacks by assessing risks and conducting awareness programs.
  • Following best business practices to maintain the trust of the customers.

Fintech companies have revolutionized the loan process by providing quicker, more convenient, and effortless systems through user-friendly mobile applications and websites.

Stay Updated About Fintech Regulations 

Some say that the fintech companies are growing faster than the regulatory policies due to the surge of advanced technologies like automation and cryptocurrencies. Different transaction methods are being explored and if not kept in check, it can prove a bigger loss for customers. 

This is the reason every big and small company should stay updated about Fintech regulations to avoid penalties. Before any governing body contacts your business to question your liabilities, check and complete all the registrations and licenses. 

One way to counter this is by building a compliance program with the help of financial experts to create a robust balance sheet. Regular bookkeeping is necessary, as well as using financial software to streamline processes. 

Implement An Advanced Data Protection System 

 Fintech Security Checklist

According to a report, the number of financial institutions that experienced destructive cyberattacks saw a 63% increase from 2021 to 2022. These facts cannot be ignored, and a strong backup plan will only succeed when a governing body makes strict policies to combat it. 

What can banking institutions do to fight yearly cyberattacks? Well, for the moment, integrating high-tech is the solution. Apart from that, the following steps could be taken to save businesses: 

  • Install a strong data encryption system. 
  • Look into process-based access control to reduce spillover of loss into other systems.
  • Conduct regular risk assessments and monitor transactions in real time. 
  • Implementing metadata for tracking is a great tool that could assist in detecting fraud. 

Adhere to Anti-Money Laundering Compliance 

The most fundamental branch of compliance is the Anti-Money Laundering (AMC). For bigger brands, it’s easier to hire someone who understands the details of this law. However, startups are still struggling to keep up with the monetary challenges and decipher the channels of governing bodies. 

AML is a tool that can help all industries from illegal financial activities. It includes rules for risk assessments, conduct monitoring, independent audit review, cross-border activities, etc. 


KYC Integration 

Another important identification verification system is KYC, or Know Your Customer. It is a straightforward and streamlined method required by every citizen of a country when opening a bank account or accepting a new transaction request. 

It is the first point of contact between a bank and a new customer and identifies if their name is correct, requirements are legal and has a low business risk. Nowadays, not just an ID, but also preventive measures like biometric systems and uploading recent photographs are also taken. 

Fintech companies can implement a KYC program and benefit in the following ways:

  • Verify that a user’s documents match the records submitted to the country’s government body. Therefore, if any mismatch is detected at an early stage, it minimizes the chances of banking fraud. 
  • Keep a record of the user’s profile in case of an illegal activity. In this way, the banks can report the user’s documentation to the authorities. 
  • The strict restriction prevents any misleading information, therefore securing customer’s accounts.
  • Banks can easily monitor transactional activities and in case of any mismanagement contact the customer immediately. 
E-KYC Market Size from 2017-2029

The graph shows the growth and forecast of the E-KYC market size by region from 2017 to 2029.

Scalable Fintech Solutions 

While online frauds are still prevalent, fintech companies need to stay one step ahead of the hackers to secure the customer’s account. Staying updated with the changing economic policies is just the first step. However, scalable solutions can be implemented to ensure streamlined processes, as are mentioned below: 

  • Inform and train employees regularly about the updated compliance policies, highlighting the importance of maintaining the customer’s data.
  • Conduct timely risk assessments and internal audits to identify neglected areas that could become a loophole for hackers to steal confidential reports. 
  • Implement the latest technology for compliance management for real-time tracking, monitoring transactions, and speeding transactions. 
  • If you can manage, partnering with compliance experts is a good idea as they can handle every aspect of risk assessments, identifying, and monitoring systems.  


As the world progresses rapidly, banking and transaction activities should also be modernized. In this regard, fintech companies are the future, as they streamline the complete process, from ID checks to purchases, and record maintenance to creating a backup plan. 

To prevent fraud and to secure the customer’s account, the following strategies mentioned in this article will be most helpful. It is the combined efforts of the authorities and the banking sector to provide stronger transaction facilities to the user. 

Reena Choudhary


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