A new presidential administration inevitably means changes in regulatory approaches and actions, which has a direct impact on fintech trends. In the world of fintech and digital compliance, the exact timing and nature of such changes will depend on a range of political and economic factors, as well as how fintech trends evolve. Regardless of what ultimately changes and when, InnReg does expect this one trend to have a significant impact.
Regulatory scrutiny of digital asset fintechs is likely to increase in 2021 and beyond. Disruptive innovators in blockchain and digital assets can help stay on the right side of current and future trends if they do not skip steps as they plan for growth. Mapping out the grey areas in advance and building a sustainable regulatory strategy will help keep newer disruptors in the black and out of the headlines.
As a newly hired or promoted Chief Compliance Officer or CCO within an early-stage fintech firm, you may find your new job requirements somewhat disorienting. Often, CCOs have extensive experience in other types of organizations, such as more traditional banks, RIAs, broker-dealers, etc., or larger companies that already have robust, well-resourced compliance teams. More mature organizations typically have more familiar needs and challenges as well.
Online and alternative lending have opened up credit to a wide range of individuals and businesses who may not meet the traditional definitions of creditworthiness laid out by banks and traditional lenders. They have also brought valuable innovation and new efficiencies to an area of finance that had stayed very close to its face-to-face, paper-based history, even as other banking services modernized.
Imagine the following nightmare scenario. At 5 AM, you get a call letting you know your company has just experienced a cybersecurity incident. Your clients cannot access their accounts. Your employees are also locked out. As you investigate further, you discover that your client data has been breached: names, addresses, account numbers, social security numbers.
