Eric Barbier’s Post

Just read an insightful post by Eric Barbier on the critical role of compliance in our industry. Embracing compliance isn't just a requirement; it's a differentiator that builds trust and ensures long-term success. And especially if you are operating in a regulated industry. Let's champion this mindset and lead the way in our field! 💡 #Compliance #financialservices #Leadership

Words of wisdom from Eric, a highly experienced Fintech founder. In a nutshell: compliance must always be top of mind for any Fintech CEO. There are no shortcuts, you’ve got to put in the work and master this yourself.

Culture of compliance starts from the top down!

'If I have one piece of advice for a fintech entrepreneur: invest in compliance. The stakes are too high. As a startup, it could destroy your business. As a scale-up, it could strongly hinder your growth.' thank you Eric Barbier for sharing this valuable advice!

Compliance sucks for startups ... most of the time, but Rachel Sapers, who’s built compliance programs at places like Carta and E*TRADE from Morgan Stanley, has a solution to save all of those "move fast and break things" entrepreneurs! Here’s Rachel's guide on how to make compliance work for fintech startups: [1] Compliance, But Make It Fractional Why hire a full-time compliance officer when you only need part of one? Get the expertise without the overhead. Startups save money while still impressing investors and banking partners by, you know, being able to show ... there's an adult in the room! Unlike a recent SV startup that thought zero due diligence lending was a great idea ... RIP [2] Your Onboarding Data Isn’t Just Compliance Fodder Your customer’s name, address, and birthday? They’re gold. - Identity verification helps with compliance and marketing insights. - Fraud protection? Covered. Targeted growth strategies? Done. A fintech used this exact approach and doubled trust scores while slashing AML review times by 30%.If you’re only using this data to tick boxes, you’re leaving money (and insights) on the table. [3] AI: Compliance’s Workhorse (Not Its Replacement) AI is taking grunt work off compliance teams’ plates. - Reviewing marketing materials? AI can flag problems before they hit compliance. - Transaction monitoring? AI filters the noisy false positives so humans focus on the real risks. E.g. One fintech saved days on marketing review cycles by letting AI catch red flags before the compliance team even saw the draft. [4] Banking Relationships Are a Two-Way Street Want a banking partner to take you seriously? Start speaking their language. Tailor your compliance framework to fit both your business and their expectations. Pro tip: Don’t copy-paste a bank’s compliance policy template for your startup. Unless you want to explain your “cash handling procedures” when you don’t even accept cash. It was a blast having Rachel Sapers on the pod, great conversation that I'm sure other compliance leaders will enjoy! Full conversation with Rachel linked below.

Can your business afford to ignore compliance? What would happen? - Financial Loss - Legal handholding - Energy and Time Loss Do you have the bandwidth to face such consequences? Compliance is crucial for: - attracting investors to startups - signaling strong management - regulatory awareness, and  - readiness for sustainable growth. Why Compliance Matters: ⏩ Risk Mitigation: Investors seek startups that minimize legal and operational risks. Compliance reduces the likelihood of penalties and disruptions. ⏩ Due Diligence: A clean compliance record and thorough documentation expedite investment decisions during due diligence. ⏩ Scalability: A compliance-driven approach ensures smooth expansion into new markets without legal hurdles. ⏩ Long-Term Value: Prioritizing compliance enhances a startup’s chances of long-term success, aligning with investors' goals. Practical Steps: ▶ Transparent Reporting: Maintain accurate records of compliance activities to build investor confidence. ▶ Legal Framework: Establish SOPs covering all regulatory requirements relevant to the startup’s industry. ▶ Compliance Officer: Appoint a dedicated officer to oversee compliance as the startup grows. Long-Term Benefits: ↪ Higher Valuation: Strong compliance records lead to higher valuations and better funding terms. ↪ Smooth Exit Strategy: Compliance practices make the startup an attractive target for acquisition or IPO.

Regulatory compliance: startup killer or secret weapon? 🤔 Many fintech entrepreneurs view compliance as a burdensome obstacle. I've witnessed numerous startups struggle with RBI guidelines, often seeing them as roadblocks to innovation and growth. But here's the truth that might surprise you: Compliance isn't just a box to tick. It's a powerful competitive advantage when leveraged effectively. How can regulatory adherence become your secret weapon? Let's break it down: 1. Trust builder: Customers flock to compliant firms - In a 2022 survey, 78% of consumers said they're more likely to use financial services from companies with strong compliance records. - Transparency in compliance practices builds credibility and long-term customer loyalty. 2. Risk shield: Avoid costly penalties and reputational damage - The average cost of a compliance breach for fintech startups can exceed $5 million, not including reputational damage. - Proactive compliance measures act as insurance against potentially business-ending setbacks. 3. Innovation driver: Forces creative problem-solving - Compliance challenges push teams to think outside the box, often leading to industry-changing solutions. - Example: The rise of RegTech has created a $6.5 billion market, projected to reach $16 billion by 2025. 4. Market differentiator: Stand out in a crowded field - With over 2,000 fintech startups in India, a strong compliance record can set you apart from competitors. - Investors increasingly view robust compliance frameworks as indicators of a well-run business. Real-world impact: One startup I advised turned KYC requirements into a seamless, 2-minute onboarding process. This innovation wasn't just about meeting regulations – it revolutionized the user experience. Result? A 40% increase in user acquisition and a 25% boost in customer retention rates. But the benefits don't stop there. Strong compliance practices can: - Attract top talent who value ethical business practices - Facilitate easier expansion into new markets - Strengthen partnerships with established financial institutions The key is shifting your mindset. Instead of viewing compliance as a burden, see it as an opportunity to innovate and excel. Embrace compliance. It's not just about following rules—it's about building a sustainable, trustworthy, and innovative business that can thrive in the long term. Your turn: What's your biggest compliance challenge? Let's brainstorm creative solutions together. Share in the comments, and let's turn those hurdles into stepping stones for success. #FintechInnovation #StartupGrowth #ComplianceStrategy #RegulatoryInnovation

As a fintech founder, you get one shot at finding a unique value prop that fits in very tight orifices of regulations. Pick those orifices well. These orifices are invisible to most experts in the industry. The best fintech founders I know build an opinionated product that will provide value to customers. A product they’d like to see in the world. Founders don’t know the orifices when they start, but through a lot of grinding and very expensive legal bills, they are able to fit their product in the right orifices. They always work with people who are: - knowledgeable about identifying the right long term orifices - how to shape the product to fit through them - don’t say “no” to every new idea Founders also know they are innovating, and expensive legal bills come with the territory. I know most of us don’t start fintech companies to spend time with lawyers and consultants. I know the feeling because I initially wanted to do the best for immigrants and not spend millions on legal fees. But making it your priority and asking the right questions could mean the difference between a successful product or endless legal fights to death. I didn’t know when I started, but I quickly realized that legal/compliance needs to be as high of a priority as a product. No one in the company will fight for the best consumer product as much as the founders.

Compliance: The Unsung Hero of Fintech Often seen as a roadblock, compliance teams are, in reality, the unsung heroes of the fintech industry. By ensuring adherence to regulations, we safeguard the integrity of the business and protect its reputation. Instead of hindering innovation, Compliance empowers startups to scale responsibly. By providing strategic guidance and risk mitigation strategies, they enable businesses to navigate the complex regulatory landscape and seize opportunities. Here's how 👇 : 🎯 Risk Mitigation: By identifying and assessing potential risks, compliance teams help businesses make informed decisions and protect their assets. 📄 Regulatory Adherence: Ensuring compliance with ever-evolving regulations safeguards the company's reputation and avoids costly penalties. 🔐 Customer Trust: Demonstrating a commitment to compliance builds trust with customers and partners, essential for long-term success. 🤝 Strategic Partnerships: A strong compliance function can facilitate strategic partnerships by assuring potential partners of the company's integrity. 🌐 Innovation Catalyst: By understanding regulatory boundaries, compliance teams can help innovators navigate the path to market, accelerating time-to-market. Let's celebrate the invaluable role of compliance teams in driving the future of fintech, and if you want to know more about how we can help you scale up your business slide into our DMs or drop us a line at info@4eyescs.com ✉️ #fintech #compliance #regulation #innovation #riskmanagement

With crypto asset management and Fintech there is no short cut. Yana Afanasieva is an expert in the industry .Not too late to join us. Discover How a Small Team on a Tight Budget Can Responsibly Manage FinTech Compliance without working longer, breaking laws or ignoring risks! Time Left to Join Before the Next Cohort Starts: Why so few compliance experts get promoted and appreciated within their companies ... while most others have to change jobs to get ahead? If you are a FinTech Compliance leader, CCO or MLRO and you and your team work very long hours, constantly struggling to secure resources; you prepare very detailed, well researched reports, gap analysis summaries or risk assessments, but very few of your recommendations get implemented; you feel unappreciated and often excluded from important business decisions until the very last minute... you finally came to the right place! Let me guess - have you already tried the following strategies only to find out they did not help? You kept asking for resources and while waiting to get your budget approved continued documenting deficiencies and things that the company did not have. You studied and memorized more regulations, because you believed that information is power and should help you make decisions easier. When in doubt, you delayed decisions or withheld your recommendations, suggesting instead to have more meetings or escalating issues to committees or seeking external legal advice. You asked for budgets using threats and ultimatums, slightly inflating the seriousness of risks, hoping it would help your senior management to view the situation seriously