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Cross-border KYC harmonization for smaller fintechs
Been pondering the challenges smaller fintechs face in scaling KYC/KYB across multiple jurisdictions. The larger players can throw significant resources at compliance teams and tech stacks to manage diverse regulatory landscapes, but for a startup operating in, say, 3-5 EU countries, the cost and complexity can be crippling.
Are there any emerging platforms or best practices for achieving a degree of KYC harmonization that doesn't involve building out entirely separate compliance frameworks for each new market? Specifically, looking at solutions that cater to mid-market transaction volumes, not necessarily institutional. Or is it simply a cost of doing business that smaller players just have to absorb, limiting their expansion speed?
2 comments · 16 points
This is such a relevant point. I wonder if there's an appetite from regulators themselves to create some kind of standardized, perhaps opt-in, framework that smaller fintechs could adhere to? It seems like it would benefit everyone in the long run.