2. Regulatory requirements-.mp4

2. Regulatory requirements-.vtt

ENGLISH

{{00:00:09}}
Stratify is an offering which is
it's the first of its kind in the UK.

{{00:00:14}}
We have seen similar offerings for
investment strategies in other parts

{{00:00:19}}
of the world, but the way we present
it to everyday users is absolutely key.

{{00:00:25}}
Our investment strategies were, the type
of investment strategies that we offer

{{00:00:29}}
were previously only really available
to high net worth, clients at investment

{{00:00:33}}
banks, for example, and for us to be able
to offer this kind of personalization to

{{00:00:39}}
everyday users means that we need to make
sure that they're accessible, we offer

{{00:00:45}}
the right education, and we present them
in the best way possible, and then making

{{00:00:49}}
the FCA comfortable with that, and it's
it's taken us two years to get there.

{{00:00:54}}
To get here and we've now built a really
great relationship with the FCA so that

{{00:00:59}}
we can offer this product for people.

{{00:01:03}}
So Clear Junction is a payment service
provider for payment service providers.

{{00:01:08}}
All our clients are
regulated institutions.

{{00:01:12}}
And I think The challenge that we
have seen in the recent years is

{{00:01:17}}
that the attitude towards regulatory
compliance is not the same in

{{00:01:23}}
every areas of the, of our market.

{{00:01:27}}
And for that reason, we had to say no
to quite a bit of prospect clients.

{{00:01:32}}
At some point we had to de risk
some of our existing clients.

{{00:01:37}}
But I think really the, attitude,
we, really we can't compromise on

{{00:01:43}}
the regulatory compliance, and that's
what we expect from our clients.

{{00:01:48}}
And, getting this message over
to them is probably the challenge

{{00:01:52}}
that I would, mention here.

{{00:01:56}}
Firstly I think that the sheer volume
of regulation out there just means

{{00:02:01}}
that it's despite the nature of the,
volume of it, it's hard to adhere to.

{{00:02:06}}
The second one is the interpretation
and the application of that, regulation.

{{00:02:12}}
The sort of businesses that we work with
they all do varying degrees within the

{{00:02:17}}
sort of Fintech space and they take that
regulation and how they interpret that

{{00:02:22}}
and then how they apply it and we apply
it doesn't always necessarily marry up.

{{00:02:26}}
But again, bringing us back to how
we can do the continuous research

{{00:02:31}}
and feedback into that community.

{{00:02:32}}
We're able to, what we think,
is apply that to the right

{{00:02:36}}
application, interpretation of those
regulations back to those groups.

{{00:02:42}}
I think that actually there are no
challenges as you say and there are no

{{00:02:49}}
difficulties if you think about compliance
as you're one of the key things.

{{00:02:55}}
You should be open to chat with
regulators, and you should be open in

{{00:03:01}}
understanding, How you deal with that.

{{00:03:04}}
So that this one of the key things
inside the company on the other side

{{00:03:09}}
for sure there are some difficulties
when some new regulations are coming

{{00:03:13}}
and you have just a shortage of
time when you can adapt, change

{{00:03:18}}
stuff, or produce some new policies.

{{00:03:21}}
So I assume that those are some small
bumps on the road, but if you feel

{{00:03:27}}
that you're one of the key He tasks
to be compliant and build company in a

{{00:03:37}}
compliant way, so that would be easy.

{{00:03:41}}
For Sidekick, our biggest challenge
is the breadth of the regulatory

{{00:03:45}}
landscape that we have to cover.

{{00:03:47}}
Sidekick is a private wealth platform.

{{00:03:49}}
It's trying to democratize the products
and the services normally locked

{{00:03:53}}
away for customers of private banks.

{{00:03:56}}
That means that we're having to cover
everything from asset management In

{{00:03:59}}
traditional securities through to
alternative investments, lending,

{{00:04:03}}
and a variety of different things.

{{00:04:04}}
So that is the thing that keeps us
awake every day is making sure that

{{00:04:09}}
we can be deep enough in each of
the different areas, but also broad

{{00:04:12}}
enough to cover all those all those
different facets of the business.

{{00:04:15}}
That's a very interesting question
because as a fintech company

{{00:04:20}}
you need to comply with a broad
set of regulatory obligations.

{{00:04:24}}
So you have anti money laundering,
you have no your client, you Then

{{00:04:29}}
you have data security standards.

{{00:04:31}}
So the biggest challenge that I
believe that many FinTech companies

{{00:04:35}}
are facing today, including us, is
one around making sure that you comply

{{00:04:40}}
with anti money laundering because the
consequences of not doing so are very

{{00:04:44}}
serious, as well as not your client.

{{00:04:47}}
And one of the ways you can do that
is by collaborating with bigger

{{00:04:50}}
companies to actually do these things
as their de facto business operations.

{{00:04:55}}
Because as a FinTech company, if you try
to do this yourself, you're not going to

{{00:04:59}}
be able to scale, and it's quite complex.

{{00:05:02}}
You focus on your primary objective,
which is what you know how to do, and

{{00:05:05}}
you work with people that are very good
at doing things like assessing client

{{00:05:09}}
onboarding, understanding the consequences
and the, landscape of sanctions that are

{{00:05:15}}
being published by different governments.

{{00:05:18}}
And you can then use the collaboration
that you have with them to

{{00:05:22}}
ensure that you are compliant.

{{00:05:23}}
for that.

{{00:05:24}}
But again, you need to look at it from a
very holistic perspective because making

{{00:05:29}}
sure that you comply with those regulatory
obligations by working with partners

{{00:05:34}}
is not sufficient in order to cover the
whole range of things that you need to do.

{{00:05:39}}
So for example, if you are working
with a payment information service

{{00:05:43}}
provider, or you are working with an
account information service provider,

{{00:05:47}}
they would do KYC and AML on you.

{{00:05:50}}
And the other thing about them What
happens is if payments go through

{{00:05:55}}
your platform, the bank would then do
all checks on that payment as well.

{{00:06:01}}
But there is that default expectation
on your part to make sure that you

{{00:06:05}}
comply with all of those regulations
despite the fact that you're actually

{{00:06:09}}
working with collaborators in this field.

Stratify is an offering which is
it's the first of its kind in the UK.

We have seen similar offerings for
investment strategies in other parts

of the world, but the way we present
it to everyday users is absolutely key.

Our investment strategies were, the type
of investment strategies that we offer

were previously only really available
to high net worth, clients at investment

banks, for example, and for us to be able
to offer this kind of personalization to

everyday users means that we need to make
sure that they're accessible, we offer

the right education, and we present them
in the best way possible, and then making

the FCA comfortable with that, and it's
it's taken us two years to get there.

To get here and we've now built a really
great relationship with the FCA so that

So Clear Junction is a payment service
provider for payment service providers.

All our clients are
regulated institutions.

And I think The challenge that we
have seen in the recent years is

that the attitude towards regulatory
compliance is not the same in

And for that reason, we had to say no
to quite a bit of prospect clients.

At some point we had to de risk
some of our existing clients.

But I think really the, attitude,
we, really we can't compromise on

the regulatory compliance, and that's
what we expect from our clients.

And, getting this message over
to them is probably the challenge

Firstly I think that the sheer volume
of regulation out there just means

that it's despite the nature of the,
volume of it, it's hard to adhere to.

The second one is the interpretation
and the application of that, regulation.

The sort of businesses that we work with
they all do varying degrees within the

sort of Fintech space and they take that
regulation and how they interpret that

and then how they apply it and we apply
it doesn't always necessarily marry up.

But again, bringing us back to how
we can do the continuous research

We're able to, what we think,
is apply that to the right

application, interpretation of those
regulations back to those groups.

I think that actually there are no
challenges as you say and there are no

difficulties if you think about compliance
as you're one of the key things.

You should be open to chat with
regulators, and you should be open in

So that this one of the key things
inside the company on the other side

for sure there are some difficulties
when some new regulations are coming

and you have just a shortage of
time when you can adapt, change

So I assume that those are some small
bumps on the road, but if you feel

that you're one of the key He tasks
to be compliant and build company in a

For Sidekick, our biggest challenge
is the breadth of the regulatory

It's trying to democratize the products
and the services normally locked

That means that we're having to cover
everything from asset management In

traditional securities through to
alternative investments, lending,

So that is the thing that keeps us
awake every day is making sure that

we can be deep enough in each of
the different areas, but also broad

enough to cover all those all those
different facets of the business.

That's a very interesting question
because as a fintech company

you need to comply with a broad
set of regulatory obligations.

So you have anti money laundering,
you have no your client, you Then

So the biggest challenge that I
believe that many FinTech companies

are facing today, including us, is
one around making sure that you comply

with anti money laundering because the
consequences of not doing so are very

And one of the ways you can do that
is by collaborating with bigger

companies to actually do these things
as their de facto business operations.

Because as a FinTech company, if you try
to do this yourself, you're not going to

be able to scale, and it's quite complex.

You focus on your primary objective,
which is what you know how to do, and

you work with people that are very good
at doing things like assessing client

onboarding, understanding the consequences
and the, landscape of sanctions that are

being published by different governments.

And you can then use the collaboration
that you have with them to

But again, you need to look at it from a
very holistic perspective because making

sure that you comply with those regulatory
obligations by working with partners

is not sufficient in order to cover the
whole range of things that you need to do.

So for example, if you are working
with a payment information service

provider, or you are working with an
account information service provider,

And the other thing about them What
happens is if payments go through

your platform, the bank would then do
all checks on that payment as well.

But there is that default expectation
on your part to make sure that you

comply with all of those regulations
despite the fact that you're actually

working with collaborators in this field.

Fintech Founders explores regulation requirements and adapting operations with our experts Henry Orunkoya, Founder, Wollette, Nikki Hawkes, Co-Founder, Stratiphy, Dima Kats, Founder & CEO, Clear Junction, Ben Parke, Founder & CEO, Eflow Global, Petr Kozyzkov, Co-Founder & CEO, Mercuryo and Matt Ford, Co-Founder & CEO, Sidekick.