Fintech Compliance: Regulations You Need to Keep in Mind

FinTech
4 min read

The Wild West days of fintech are over. The global average cost of a data breach has reached $4.88 million in 2024. Add regulatory fines, legal fees and reputational damage, and here we are – looking at potentially business-ending consequences.

But here’s the plot twist: compliance done right is your competitive advantage. When customers can choose between a fintech with solid compliance credentials and one that’s playing fast and loose with regulations, guess which one they’ll trust with their money?

If you’re handling data from EU residents, GDPR is your everyday reality. No, not a nightmare. A GDPR breach can cost up to €20 million or 4% of annual global turnover, whichever is higher.

But here’s what can be missed sometimes: GDPR and other FinTech compliance builds trust with customers, demonstrating a commitment to protecting their sensitive financial data, thereby enhancing brand reputation and customer loyalty.

The challenge for fintech is unique. Financial technology companies often encounter unique challenges related to data privacy and protection, especially with the necessity to process large amounts of information, sometimes of a sensitive nature, including financial, biometric, and even criminal record information.

Don’t think of GDPR as a burden, think of it as a competitive advantage. Demonstrating GDPR compliance positions fintechs favorably in the market, signaling a strong commitment to security and privacy.

Read our article on GDPR here.

Remember: in fintech, trust is your most valuable asset, and compliance is about proving you deserve that trust. The companies that master compliance early will be the ones that define the future of financial services.

Maryia Puhachova
Maryia Puhachova

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