How FinTechs can build an effective compliance programme

A recent panel discussion led by Clausematch focused on a key, hot-button topic in FinTech right now: how can high-growth firms build effective compliance programmes?

The panel included Ade Haffner from PensionBee, Anna O’Shaughnessy from Griffin, Anna Velvet from RegTech Canada, Olus Kayacan from bpost bank, and Shelley Schachter from Mode.

According to Clausematch, the objective of the session was to assess the main pain points faced by high-growth companies looking to build a compliance programme and share solutions to overcome these hurdles, focusing on the pillars of people, processes and technology.

The panel outlined four key tips to tackle such pain points, with the first tip centered around building your team right. Establishing a compliance function can be a lot of work, and for FinTechs, it can often mean creating processes, governance and policies to apply for licences that can in some cases be out of date when such licenses are granted. This means having a wide spectrum of compliance knowledge in a team is key, as they will need to jump from one subject to another in the early days of the organisation.

Clausematch added, “However, as you start to grow, you will also need people with good analytical skills that can research, learn, and adapt to new landscapes, geographies or products, as the company matures and takes shape.”

The second top tip provided was to ‘pick your battles’. This was emphasised by Clausematch in a point where it claimed companies should spend their energy on what is going to bring more value and mitigate the biggest risks – instead of dealing with all of your compliance priorities at the same time.

People in companies should be allowed to spend their time wisely – according to the third top tip provided by the panel. Clausematch stated, “Automating time-consuming, admin tasks such as regulation reporting, and policy review, approval, and distribution will allow your team to focus on building a strategic compliance programme. “

The company provided an example from the Barbican Insurance Group, which found that automating policy management can lower costs by 30% and reduce approval time by 15%.

The final tip provided was that FinTechs should make information easily available to their first-line team.

Clausematch said, “All relevant policies and procedures should be at hand for those who need them, when they need them. In a growing FinTech organisation, you won’t have a big compliance team, so you can’t rely on the knowledge of a few individuals to know what to do. You have to empower your first line team to figure things out and reach out to your compliance team only when needed. This is one of the reasons why PensionBee decided to invest in a policy management and distribution platform.”

Read the full post here.

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