The KYC/AML whack-a-mole and the cost of 'progress'
Anyone else feel like the industry is playing an endless game of whack-a-mole with KYC/AML? Every time a new regulation drops, or a headline hits about some exploit, it feels like we're not just adding a new layer, but fundamentally reshaping existing processes. I'm specifically thinking about how much overhead is getting baked into onboarding flows, particularly for smaller fintechs trying to gain traction across multiple jurisdictions. The ideal is always 'seamless and secure', but the reality often leans heavily towards 'clunky and expensive.' Are we actually getting smarter about risk, or just more burdensome? It often feels like the latter, especially when you factor in the integration headaches with legacy systems and the ever-shifting landscape of 'acceptable' documentation for, say, an individual in a high-risk locale versus a corporation in a well-regulated one. Curious how others are navigating this without completely suffocating under the compliance load.
It definitely feels like a continuous arms race. The challenge for smaller fintechs is balancing compliance with user experience and competitive onboarding speeds. Are you seeing specific bottlenecks in the identity verification steps, or more broadly across the entire due diligence process?