Major Challenge in FinTech Industry in 2023
Compliance with Government Regulations
Finance is one of the industries that are subject to the most regulation. There will always be government interference, even if you use standard FinTech software that does not use blockchain or other crucial technologies. In addition, Google continues to monitor products that are “your money or your life.” A company is removed from the store’s search or application if there are complaints about it. Even though Google is not run by the government, most of the target nations use it to search, so they control a lot of digital distribution.
To ensure the security of sensitive information exchanged, financial services organizations must adhere to a variety of rules and regulations. FinTech companies face a significant obstacle when it comes to compliance because it requires extensive security measures to ensure that no vulnerabilities are left for hackers to exploit. In addition, applications and software’s performance must not be compromised while complying. Some restrictions are the same for all financial institutions, while others are different depending on the type of business they do, like insurance, lending and borrowing, financial advice, and so on. There will be severe penalties for financial institutions that don’t follow the rules.
Solution Before developing an application or using custom software, check for legal compliance. In addition, you can hire a legal consultant to walk you through the fundamentals and policies if necessary. Before entering the market, ensure that your legal department is up to date on the most recent government regulations pertaining to privacy data requirements in the countries of target distribution so that you can immediately modify those regulations.
Do you need help and support to overcome this challenge,
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