As a fast-growing fintech, it can be difficult to manage increasing financial crime compliance burdens and risk exposure without hindering growth. Hiring more and more people is not a sustainable solution. Luckily, there are a growing number of tech-enabled vendors that can help you manage financial crime without slowing your growth or dramatically increasing your overhead. In fact, well-planned investment in your financial crime compliance function can position you most effectively to scale and expand.
At Cable, we often get asked about what the ideal financial crime stack would look like. After speaking with over 200 financial crime teams around the globe, we have come up with a short and sweet formula for when a fast-growing fintech should expand its financial crime stack.
To launch as a fintech or bank, you need to be able to onboard customers compliantly and with as little fraud as possible.
You need customer onboarding technology that can tell you if a customer is who they say they are, screen them against sanctions and other lists, and identify early indicators of fraud. Think of these vendors as the backbone to your financial crime program.
Congratulations, you have successfully launched and started to attract customers! At this stage, it gets harder to monitor every customer and transaction on your platform and you may start seeing some fraudulent activity.
It’s time to onboard a transaction monitoring solution to help facilitate safe customer growth and to alert you to suspicious behavior.
Growth is accelerating, and keeping on top of your financial crime program is probably becoming a headache. Your customer onboarding and transaction monitoring tools are working hard to help you grow, but they are also identifying an increasing number of issues. The compliance, risk, and financial crime teams are struggling to handle the workload and internal systems are getting disorganized.
Now is the time to bring on a case management solution to help you organize your financial crime program.
You are starting to gain market wide attention. Some of that attention includes sponsor bank or regulator inquiries asking about your financial crime framework. They want to know how effective your financial crime program is and what you are doing to satisfy both contractual and regulatory requirements.
It’s time for automated assurance to have a real-time view of your compliance and controls effectiveness, save time and money by avoiding regulatory issues, and deliver critical information to your stakeholders.