Fixing audit and regulatory reporting gaps in fintech with Power Apps
The financial technology (Fintech) industry never sits still, new apps, ledgers, and payment rails appear almost daily. Regulators, in turn, keep tightening their lenses. Audits and periodic reports have morphed from paperwork drudgery into core strategy sessions for firms that intend to grow and stay credible. A recent survey claims roughly 93% of these companies still stumble over the rules, while more than 60% wind up handing over $250,000-or more-each year to atone for minor missteps.
Challenges in Fintech Regulatory Audits
Fragmented Data Sources and Silos
Industry surveys published earlier this year indicate that 54% of senior executives in banking name isolated data stores as the single greatest hindrance to innovation. A somewhat larger 62% classify dismantling those silos as the chief objective of their data road maps. Fragmented environments show up in at least two concrete ways:
- Disconnected System Architecture: Fintech companies typically rely on disparate systems for payment processing, customer relationship management, risk assessment, and regulatory reporting. These isolated systems create blind spots that auditors struggle to navigate, leading to incomplete fintech compliance assessments.
- Cross-Border Complexity: Setting up cross-border companies creates more intricacies, having to move through diverse regulatory environments in various jurisdictions. Thus, the wide-range geographic location compounds data management problems and creates compliance gaps.
Resource Constraints and Expertise Gaps
- Limited Internal Audit Resources: Being non-bank entities, Fintech generally do not have enough internal audit resources and hence run the risk of cybersecurity and regulatory fintech compliance coverage not being exercised.
- Competency Gaps in Emerging Technologies: Fintech find it very difficult to comply with regulations because there are very few experts who understand both financial service regulations and emerging tech such as AI and blockchain.
Regulatory Complexity and Evolving Requirements
- Multi-Jurisdictional Compliance: Operating globally, the fintechs face obstacles in complying with varying standards, as the countries adopt the FATF guidelines with their own regulations.
- Dynamic Regulatory Landscape: Evolving regulations such as the 6AMLD and MiCA require that they continuously update their systems for fintech compliance and keep alert to changes.
Read More :- https://megamindstechnologies.com/blog/fixing-audit-and-reporting-gaps-in-fintech-with-power-apps/
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