KYC Costs vs. Risk Mitigation for Small Fintechs

Starting to see a widening gap between what big banks can spend on sophisticated KYC/AML systems and what smaller fintechs can realistically afford. It's a huge burden. How are others in the smaller to medium-sized fintech space balancing the non-negotiable compliance requirements with maintaining a viable operating margin? We're talking real dollars here, not just hypothetical risk. Seems like a compliance tech arms race where the smaller players are perpetually outgunned. Any thoughts on practical, cost-effective strategies to satisfy regulatory expectations without bleeding cash dry?