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FinTech State of Play

FinTech is transforming the entire financial services world on a global scale and in a speed never seen before. In 2011 Crowdfunding platforms raised $1.5bn worldwide. Last year that figure had grown to $5bn. In 2013 over a quarter of us used our mobiles to check bank balances. In 2014 over $14bn was invested in the sector. In the last 18 months alone we have seen a proliferation of new technologies for making payments

New startup companies are challenging traditional banking institutions and their existing solutions, and London, being traditionally one of the world’s main financial centres, is attracting a lot of those startups and becoming one of the leaders in FinTech innovation. There is a wave of innovation in financial services taking place and its taking place right now.

Challenges faced at launch and through expanding

One of the main challenges for the launch and international expansion for FinTech businesses is to navigate through the complex regulatory landscape, to understand, develop and implement a compliance and regulatory framework and to obtain the required regulatory permissions to get started. This means that a launch may be 8-12 months away, but using a specialist platform can help to reduce significantly both launch time and costs.

The financial services industry is tightly regulated and navigating through this increasingly complex regulatory framework is a huge challenge, but a very critical component for the success of any FinTech firm.

In order to be compliant and satisfy the regulations a solid infrastructure centred around people, processes and procedures is needed. On-going compliance requirements including the preparation of regulatory filings, implementation of a sound risk management framework as well as tax, payroll and accounting submissions take your focus away from the launch and growth of your business.

Key Features and Benefits of a platform

Another option to managing the regulatory and compliance requirements internally is to partner with a platform that has the regulatory permissions and compliance infrastructure already in place. For example, you can become FCA compliant in only a few weeks and for a fraction of the costs usually associated with a direct authorisation by becoming an Appointed Representative of an authorised firm. The key benefits provided via this route are;

  • Speed to market – Set up in 4 weeks
  • Integrated solution for FinTech start-ups
  • Expert compliance infrastructure and advice
  • Efficient processes and governance

A platform will help you set up all the processes and procedures so you can focus on the launch and growth of your FinTech business. It can also take care of all the ongoing compliance requirements by preparing regulatory filings, as well as tax, payroll and accounting submissions and even can help you find investors and make necessary connections to secure your funding.

 

By Andrew Frost
Lawson Conner

Contact Andrew Frost on +44 (0) 203 696 2568 or via email at afrost@lawsonconner.com