A recent survey of 100 fintech leaders found that industry priorities have shifted from operating costs and fundraising to regulatory challenges, customer attrition, and fraud.
“The benchmark for best in class companies has changed dramatically in the past few months, and combined with the bearish macro environment, this has forced private fintech companies to prove they have what it takes to be successful,” said Charley Ma, GM of Fintech at Alloy. “The businesses that show they can attract and retain customers, get and stay compliant, and prevent fraud on their platforms will be well-positioned to refocus on aggressive growth once macro conditions improve.” Alloy is a major player in fraud prevention. Link to full article Fintech in 2022
This heightened concern over compliance may be due in part to the SEC’s targeting of financial firms. 2022 was a record year for penalties. A 9% increase over fiscal 2021.
‘This past fiscal year, we sought to recalibrate penalties to more effectively promote deterrence,’ said SEC enforcement director Gurbir Grewal. Link to article.
Numerous institutions such as the Federal Trade Commission (FTC), Consumer Financial Protection Bureau (CFPB), and Securities and Exchange Commission (SEC) are now starting to crack down on weak practices. Increasingly, laws and regulations are being introduced that no longer give companies a pass on poor cybersecurity and privacy practices. Companies that aren’t implementing sound measures to protect their users’ privacy are met with fines and disciplinary actions.
Part of the problem is that Fintechs today don’t always have the best grasp on what critical data exists within their ecosystem and what they should be doing to protect it. As soon as data resides on enterprise systems, a connection between data privacy and cybersecurity is established. The business is now accountable for designing cybersecurity controls and programs that protect personal information from theft, unauthorized access, and damage.
Ensure you’re doing everything possible to protect your client data and your business. Contact Charlene today and find out how to start your risk management program.