Where FinTech License Applications Often Get Stuck?
Today, I wanted to share with you some of the most common scenarios where FinTech license applications get stuck. 😉
Curious? – Read on! 👓
- Not knowing how to respond to broad open-ended questions such as “describe the flow of data within your organization”, “describe how do you detect risks related to a data breach or unauthorized access” or “how do you mitigate the risk of a non-face-to-face relationship”,
- Experiencing delays with hiring and fundraising,
- Not being able to form a solid independent board,
- Spending too much time early on building your tech or selecting vendors,
- Spending too much time early on building your brand, social media presence, and community and annoying regulators by calling yourself a “bank for the future generations” or “digital dream bank” (or a variation thereof),
- Pushing back on regulators suggesting their questions do not apply to you,
- Not knowing the difference between payments, e-money and remittances services (especially if you rely on the cards networks) and having trouble explaining to the regulator which part of the payments chain is performed by each of your partners and who is responsible for transactions authorization, safeguarding, and fraud during each step,
- Not having enough details on how you are going to monitor your key outsourcing vendors and what are your backup plans if one of them fails,
- Explaining and justifying automated decisions around clients’ acceptance.
Yes, it takes a while to go through this process but at least if you feel stuck with one of the areas above, you know, you are not alone. 😊
