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How Fintech Can Drive Scaling and Compliance

By Kris Simpson, Head of UK B2C for Cool Company 

Financial services compliance is essential for any business, though not always particularly easy to manage. Larger organisations can benefit from dedicated teams that will oversee compliance but scaling businesses may not be so lucky. 

Having limited resources to ensure compliance can lead to the very mistakes that Fintech was initially developed to reduce. Fintech aims to automate processes that typically require a lot of human intervention to manage. It works to streamline compliance effectively and limit human error. 

How Can Fintech Help Businesses with Compliance and Scaling?

Fintech helps businesses in two key ways: expanding into new territories and process scaling internally. 

Expanding into new territories in business used to be lengthy and required a lot of human intervention. Typically, you need to work with local people to form a good and solid understanding of region-specific rules or obligations, of the cultural norms of the area, of the tax requirements and, most importantly, the compliance rules. 

The downside of this method was simply the amount of time, money and trust that needed to go into expansion. Fintech works by ensuring your organisation adheres to all the necessary standards in a much more streamlined and affordable way. This inherently speeds up the process of expansion. 

Algorithms work to simplify the key processes so that compliance can become automated, and the expansion transition runs smoothly. Of course, there is usually still a degree of local help needed, particularly when it comes down to language barriers in new territories and gauging the initial response of the business service.  

The indisputable benefit of automation is the reduction of stress around seasonal fluctuations in demand for different products and services. Managing these different trends often leads to a huge amount of pressure for back-office workers faced with hiring, onboarding, and training new employees. 

The paperwork involved can be momentous, and Fintech benefits companies by automating processes such as payroll, HR requirements and organisational compliance. 

Fintech can help companies with rapid scaling by handling these aspects of an organisation without putting severe pressure on back-office HR and accounting teams. All the processes are completed automatically and can produce an auditable compliance trial easily and when requested. 

Ensuring that scalability is tackled on a digital landscape dramatically reduces the physical expansion costs, which is beneficial for any organisation. Scaling up only continues to inform Fintech businesses, who rely on the incoming data to continue to make accurate process judgements. 

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What Challenges are Faced by Fintech Companies?

When working with compliance, it’s important to remember that the legislation is easily changeable. You may get comfy and knowledgeable with one way of doing things, only for it to be completely revoked or adapted a few years down the line. 

This means that Fintech businesses need to have flexibility and a willingness to adapt at the very core of their work. Flexibility must be built in the culture from the get-go so that should a legislation change happen, the organisation is able to adapt instead of firefighting to keep up. 

In particular, Fintech businesses that have or are working to expand into new territories should do so with the understanding that necessary steps have been taken to make infrastructure change run smoothly across all territories. 

Different regions will have different compliance demands, different legislation and different legal systems that will all need to be considered from the very beginning of the solution. 

There’s no denying that the impact Fintech can have on an organisation is substantial. Fintech businesses receive feature rich software advantages that change formerly manually taxing processes, such as onboarding, into efficient and streamlined practices that relieves pressure on the in-house teams. 

The benefits of this can be felt across the organisation at all levels, as this kind of software demands a culture of adaptability and flexibility. This means that not only are businesses finding scalability drastically improved with such flexibility ingrained in the processes from the offset, but also that the employees of the organisation have more time to focus on delivering quality work. 

Fintech has created an environment in which smaller and medium-sized businesses can enjoy the benefits of a much larger-scaled company. This paves the way for the business to focus on the growth of the organisation, whilst knowing that there is flexibility and compliance threaded through all levels of the business. 

Author Bio:

Kris Simpson is the Head of UK B2C for Cool Company and is responsible for operational and compliance in the UK. With over 10 year’s experience in Umbrella Payroll and the Recruitment sector. Kris is Cool Company’s go-to person when it comes to changes in the UK and providing solutions that our customers need. 


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