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Why Fintechs need a proactive approach to regulation

Ken Miller Chief Technology Officer
Publish date: 13th June 2023

With an industry that is moving so quickly but also one that is so pinnacle to our society, regulations need to parallel this fast movement to protect users. To remain competitive in the market, Fintechs need to be ahead of the game taking a proactive approach to upcoming regulations.

Upcoming financial regulations

Keeping on top of the latest regulatory developments in the finance sector is an important factor for all Fintech companies. Organizations such as The Financial Conduct Authority (FCA) or the The Office of the Comptroller of the Currency (OCC) are always looking at ways to strengthen regulations and safeguard consumers, keeping up to speed with upcoming regulatory policies is a must. When homing in on the UK, there are a lot of regulatory changes coming into effect due to Brexit with the replacement of retained EU laws. The enormity of this task alone could see huge shifts in how the financial space operates.

Speaking more broadly, Fintechs should be preparing for Open Finance which is being put at the forefront of financial regulation for over 40 countries. This bill is set to put a higher focus on consumer rights, privacy in electronic communications, and a step up of information standards when it comes to data protection and sharing. There is also high potential that it will include regulation for digital IDs, a UK GDPR and smart data management of consumer information. The Open Finance bill will see security in Fintech become more vital than ever.

Security in Fintech

Data breaches in Fintech can lead to disastrous results for the end user such as fraud and loss of money. But these data breaches also cause long term damage to the trust users have in a brand. Therefore, it is vital that Fintechs have security measures in place so that whilst changes are being made, especially those related to Open Finance, they can be sure their user's data is protected.

A rigorous approach is already paramount in the finance sector, but this is only set to increase with the assured regulatory changes coming in the next few years. And when working with Panintelligence, you can trust that we put security at the foundations of our solution. Our technology was developed within the stringent environment of the financial services industry, meaning our platform has been engineered to be compliant and secure from the get-go. Embedding our solution into your Fintech will mean that there is no transfer of data across platforms, adding an extra layer of security.

Pension dashboard regulations 

Fintechs working in the pensions space of the financial market need to be especially aware of the new pensions dashboard standards which are due to come into effect in 2023. Data standards within this will enlist data formatting requirements which pension providers must follow when presenting pensions data, including design standards which make it easier for users to visualize their data and how their pensions are growing, signposting customer journeys. Reporting standards will provide a description of the data that both pension providers and dashboard providers must supply to regulatory bodies, PDP and DWP, to monitor the effectiveness and health of the ecosystem.

Panintelligence’s embedded analytics offers you a low code solution that encapsulates all the building blocks you need to ensure that your Fintech is meeting the new pensions dashboard standards. Utilizing the data in your system, you can deliver intuitive dashboards that not only deliver the information to your users at the right time and with the right focus but present it in a way in which they can easily visualize the progression of their pensions.

Spotting threat trends 

Another change coming over the horizon for Fintechs to consider is a the FCA kicking off its 2023 focus on anti-money laundering (AML) centred around spotting money laundering trends and fraud. With security being of such importance for Fintechs, this regulation has the potential to work well for your technology, if the correct solutions are put in place.

A great way to prepare for this new regulation would be to consider embedded analytics dashboards. Integrating embedded analytics into your Fintech will allow your customers to easily analyse data from users and spot trends to pick out money laundering and fraud red flags early enough on in the process. Predictive analysis can also be utilized using historical spending data to spot any anomalies that may arise.

Be proactive not reactive

Fintechs need to ensure they are being proactive, not reactive when it comes to new regulations and standards. The market is constantly becoming more saturated with competitors, and those that are prepared for upcoming regulatory changes will be able to present longevity and a USP to users.

Panintelligence’s embedded analytics platform can integrated into your Fintech application within as little as 30 days. Our solution can be rapidly deployed to analyze your data sources and transform them into customizable dashboards, interactive reports, and predictive analytics to create a platform built for longevity, as well as security. 

If you’re looking to stand out in an ever-saturated Fintech market? Speak to our experts or request a demo to understand how we can elevate your solution.

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Ken Miller, Chief Technology Officer Ken has worked in Software Development and complex data systems for over 25 years. Troubled by the complexity and lack of security in Business Intelligence tools, he and his team (with some help!) started writing their own. Seventeen years on (and still going), they have been joined by a team of passionate techies who have shared the vision and managed to deliver what they could never have done alone. Ken admits he may be a one-trick pony, but he loves data passionately; where others see problems, he sees his next challenge. Bringing structure and meaning to a world of increasing complexity is his hobby – except on the weekend when he enjoys surfing on a beautiful beach in the glorious north east of England.View all posts by Ken Miller
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