Thinking about opening a fintech business in the U.S.?
As a fintech organization, it’s imperative that you not only know how to develop a valuable product or service, it also requires a thorough understanding of the regulations applicable to your business.
In our latest chat series, ‘Spilling the Tea with Compliance’, we’re joined by Payoneer’s Chief Compliance Officer, Jani Gode along with the Executive Director of the Money Services Business Association (MSBA), Kathy Tomasofsky who discuss the benefits of working with trade associations.
Watch the full episode below!
Here we’ll go over how working with a trade association can expand your compliance and legal efforts, as well as the current and upcoming regulatory challenges for fintechs in the U.S..
Establishing a business in the U.S. can be a major challenge for fintech companies as it requires navigating over 49 different entities. Even larger companies must be able to track their business from a regulatory front and in the U.S., there’s a high legislative season that occurs between January and June, so as a business, it’s important to keep tabs on what’s changing.
Trade Associations can help fintech businesses in many ways such as:
As more and more fintech companies continue to emerge, traditional banks are facing strong competition which means that fintechs are facing more challenges in markets such as the U.S.. While the U.S. does support fintech innovation, it heavily regulates products/services offered by fintech companies.
Some of the regulatory challenges that fintechs in the U.S. are currently facing include:
Over the next few years, fintechs will continue to face quite a few challenges and it’s crucial that they keep track of the changes in legislation, compliance, fraud and more in order to stay afloat in the sector.