Some Reasons Why FinTech Compliance is Indispensable
The more the internet and online world progresses, the more closely it needs to be guarded to prevent fraudulent activity. This is particularly true for FinTech applications, wherein individuals and businesses need to provide highly confidential financial information. In fact, as per the 2023 statistical reports by the National Cybercrime Reporting Portal, a minimum of Rs. 10,319 crores was lost by those at the receiving end of digital financial fraud.
Fortunately, premium FinTech platforms have strict security and compliance processes in check, most of which are supported by automation to increase accuracy and efficiency in the process. So, why is compliance important in FinTech applications, and what have the top FinTech companies been doing to ensure a safe and secure environment for their users?
Data privacy
Businesses need FinTech for their various financial operations, from invoicing and connecting with stakeholders to data gathering and analysis. In the process, a lot of personal information gets shared on the platform, and there’s a constant risk of such information being leaked to third parties that aren’t involved in the transactions. For businesses, it is not only their personal data but also that of their customers that needs to be protected. Risk and regulatory compliance is a huge step towards achieving complete data security and privacy on these applications.
Technological compliance
Most FinTech apps regularly update their software systems and tools to include new features and services. But with each of these upgrades comes the question of data security. With automated regulatory compliance, these upgraded technological features are also tested for their security, so that users can utilize the app’s latest features without having to worry about any potential safety breaches.
Building trust with consumers
If there is no regulatory compliance, end users cannot trust financial institutions operating on FinTech platforms, and they might not want to associate with institutions that do not have proper security measures in place. So, establishing trust with end users is an essential part of using a FinTech platform for business transactions.
Preventing legal problems
Handling legal issues can be a hassle in the midst of business operations. But without proper compliance processes, businesses may face legal complications eventually, which can not only be time consuming but also an expensive affair. The best way to prevent such issues is to have proper regulatory compliance processes in place on FinTech applications.
These days, regulatory compliance has become highly streamlined and efficient with the automation of these processes on the apps. Premium FinTech applications use cutting-edge technology and highly streamlined security processes to ensure that all the data stored on the application is safe and restricted to those who can have access to it. We at Zuron are dedicated towards ensuring 100% safety and security of all stakeholders who leverage our platform for finance payables, receivables, lending, and all other business functions.
