OUR SERVICES
Regulatory and licenses Expertise
novumB Consulting helps navigate the complex regulatory landscape for the payments and e-money industry. It includes securing licenses, authorisations and ensuring compliance for your business.
Whether you’re launching a new financial service or expanding globally, we advocate on your behalf with regulators, tracking policy changes and providing insights to keep you ahead of the curve.
Our deep understanding of the regulatory frameworks allows us to develop key partnerships that help you thrive within the boundaries of the payment regulation.
Whether you are a disruptive fintech startup or an established financial institution exploring new digital offerings, we put our comprehensive knowledge of regulations, partnerships, and growth strategies to guide you through complex regulatory hurdles, helping you navigate the web of licenses, compliance, and oversight required to successfully launch and scale your fintech business.
Regulatory and Compliance Framework
Policies
We establish a robust set of policies and procedures to ensure your business operations adhere to all relevant financial regulations and industry best practices. These policies cover areas such as anti-money laundering, know-your-customer, intra group service agreement, recovery and exit plan…
Risk Management
Our risk management framework helps you identify, assess, and mitigate potential risks across your business activities. We work closely with you to develop strategies to proactively manage operational, regulatory, and reputational risks.
Outsourcing Management
When leveraging third-party service providers, we help you implement effective oversight and monitoring processes to maintain compliance and service quality. We help you ensure seamless integration and performance management of your outsourced functions.
Regulatory Relationships
We maintain strong relationships with regulatory authorities in Europe and Africa, enabling us to advocate on your behalf and facilitate efficient processes for securing necessary licenses and approvals. It includes monitoring regulatory developments to keep you informed and compliant.
Stakeholder Engagement
We facilitate productive relationships with your internal and external stakeholders, such as banks, payment schemes, BaaS providers, and other payment service providers. This helps you navigate the complex ecosystem and foster collaborative partnerships that drive your business growth.
To support your growth in the digital economy, we offer a comprehensive regulatory and compliance framework tailored to your specific needs.
Questions? You’re Covered
Some of the most common regulatory challenges faced by fintechs today include:
- Compliance complexity: Navigating the intricate web of regulatory requirements across different jurisdictions and agencies, ensuring comprehensive compliance while minimizing administrative burden.
- Regulatory uncertainty: Executing long-term strategies amidst ambiguous and rapidly evolving regulations, staying agile to adapt to regulatory changes.
- Reporting requirements: Streamlining extensive reporting processes to minimize diversion of resources from core business activities.
- Cross-border operations: For international fintechs, ensuring compliance with varying regulatory regimes across multiple jurisdictions.
- Data security and privacy: Implementing robust data protection measures and adhering to data privacy regulations across different markets.
- Liability and consumer protection: Assigning liability for potential damages, especially with AI-driven financial services, and ensuring robust consumer protection frameworks.
When expanding geographically, fintechs should consider the following key points:
- Regulatory landscape analysis: Thoroughly understand the regulatory requirements, licensing processes, and compliance obligations in target markets.
- Local partnerships: Explore strategic partnerships with local financial institutions or service providers to leverage their regulatory expertise and market knowledge.
- Talent acquisition: Build a team with expertise in cross-border regulatory affairs, compliance, and local market dynamics.
- Localization: Adapt products, services, and marketing strategies to align with local regulations, cultural norms, and consumer preferences.
- Regulatory engagement: Proactively engage with regulatory authorities in target markets, seeking guidance and fostering collaborative relationships.
- Risk management: Implement robust risk management frameworks to identify and mitigate regulatory, operational, and reputational risks associated with international expansion.
To effectively manage data security across different regions, fintechs should consider the following strategies:
- Data Localization: Comply with data localization requirements by storing and processing data within the borders of specific regions or jurisdictions, as mandated by local regulations.
- Encryption and Tokenization: Implement robust encryption and tokenization techniques to protect sensitive data during transmission and storage, adhering to the highest security standards in each region.
- Access Controls: Establish strict access controls and authentication mechanisms to ensure that only authorized personnel can access sensitive data, with granular permissions based on the principle of least privilege.
- Incident Response Planning: Develop comprehensive incident response plans tailored to each region’s data breach notification requirements and regulatory reporting obligations.
- Third-Party Risk Management: Conduct thorough due diligence and implement strict security controls when engaging with third-party vendors or partners that handle sensitive data across different regions.
- Employee Training: Provide regular training and awareness programs to employees on data security best practices, emphasizing the importance of adhering to regional data protection regulations.
- Continuous Monitoring and Auditing: Implement continuous monitoring and auditing processes to identify and mitigate potential data security risks, ensuring compliance with evolving data protection regulations across regions.
Fintechs can leverage regulatory technology solutions to automate and streamline compliance processes. This includes using AI and machine learning for real-time monitoring, data analytics for risk assessment, and cloud-based platforms for centralized compliance management. Additionally, adopting agile methodologies and fostering a culture of compliance can help embed regulatory requirements into product development cycles.
Fintechs should strive to build constructive and collaborative relationships with regulatory authorities. This includes maintaining open and transparent communication channels, proactively seeking guidance and clarification, and demonstrating a commitment to regulatory compliance. Additionally, fintechs can contribute to regulatory sandboxes and pilot programs to foster innovation while ensuring regulatory oversight.
- Talent pool: Attract and retain top talent in technology, finance, and entrepreneurship through competitive incentives and a vibrant ecosystem.
- Regulatory environment: Foster a regulatory environment that balances innovation with consumer protection and financial stability.
- Access to capital: Provide access to diverse sources of funding, including venture capital, angel investors, and government incentives.
- Infrastructure: Develop robust physical and digital infrastructure, including high-speed internet, co-working spaces, and incubators.
- Collaboration: Encourage collaboration among startups, established firms, academia, and government agencies to foster knowledge sharing and synergies.
- Supportive culture: Cultivate a culture that embraces risk-taking, experimentation, and continuous learning.