CAN FINTECHS PREDICT REGULATORY CHANGE ?

Simona Covaliu , Chief Risk Officer at PayU GPO , indicates how fintechs can predict shifts in regulations and preempt any upcoming changes .

She says : “ There are ways in which fintechs can anticipate changes in regulations . The Wirecard event brought predictable changes to regulatory requirements in Germany , for example . Higher reliance on cloud computing from the financial industry brought increased regulatory scrutiny on vendor risk management and outsourcing . A surge in AI usage and tools will predictably come with regulatory developments for AI-related usage and development .

“ By studying such events , modern fintechs can anticipate the direction of future regulations and proactively design their day-to-day operations to address similar risks internally .

“ Fintechs should also actively engage in industry consultations and responsible lobbying to help shape compliance frameworks . Early insight into upcoming regulations supports the proactive development of processes , infrastructure and culture . By fostering a culture of compliance , fintechs can maintain regulatory agility and navigate the complex landscape more effectively , turning the challenge of compliance into a competitive advantage .”