Conducting Due Diligence on a FinTech Business

At FINTRAIL, we were really excited to present at the recent ACAMS seminar, KYC/CDD for the 21st Century. It was an excellent day, with some great presentations and speakers.

The theme for the day focused on applying a risk based approach to KYC and CDD and examined developing trends in the industry, with an audience drawn from across the financial services spectrum. FINTRAIL provided the audience with a simple methodology for conducting risk based due diligence on a FinTech business, examining some of the challenges, but also the opportunities the sector and approach may bring.

Delegates worked through a case study, which showed that although there are risks, the entrepreneurial spirit that defines FinTech can often be appropriately harnessed to improve financial crime controls such as onboarding and KYC. In turn this can result in more efficient and effective processes - reducing the perceived risks a FinTech may pose to issuing banks and Partners.

There is no denying that accessing banking facilities remains a significant challenge for payments providers and FinTech, driven by the continuing fall-out associated with de-risking/risk-off appetite and a general perception that the FinTech sector is of higher risk from financial crime. This session highlighted that a risk based approach to both the onboarding and ongoing due diligence of a FinTech business presents an opportunity to build a strong relationship between the provider and client, where the perceived or actual risks are understood, appropriately managed and the parties are then empowered to collectively capitalise on exciting commercial opportunities the sector is creating.

Our thanks again to ACAMS and Samantha Sheen for organising such a great event.


Please feel free to contact the team at FINTRAIL if you would like further information.