According to The 2023 panorama published by France Fintech and BPI France, while half of fintechs are less than 5 years old, 53% have more than 1 million in turnover. In this constantly evolving financial sector, fintechs are particularly vulnerable to fraudulent activities. Deploying an effective anti-fraud plan is therefore essential to protect not only your company, but also its customers and partners. Let's explore together the 4 main advantages that a Fintech can derive from a well-designed anti-fraud strategy!
The implementation of anti-fraud measures helps fintechs to comply with legal requirements and regulatory. By complying with regulations, they thus avoid sanctions and fines.
Also note that setting up an anti-fraud plan allows you tohelp in the fight against money laundering and terrorist financing (LCB-FT).
So, a A rigorous LCB-FT plan helps Fintechs meet international and local standards and requirements.
Without an effective AML/CFT plan, a Fintech can be accused of negligence or involvement in illegal activities, even if unintentional. This can lead to heavy fines, of administrative sanctions, or even criminal prosecutions against the company and its managers.
💡 Did you know?
As a general rule, the Fintechs are required to carry out the same controls as large banking groups. However, because they usually don't have a customer, they don't see the need for it and put it off. As the saying goes, prevention is better than cure. So, be vigilant and get an anti-fraud solution right away. Need help choosing your solution? Contact our Finovox experts to find out more!
To find out more about legal obligations in banking: What are the legal obligations in anti-fraud banking compliance?
By developing an AML/CFT policy, a fintech can proactively detect and report suspicious transactions. Elle thus reduces the risk of being involved in illegal activities.
What is the point? If a fintech wants to be approved by an institution, it can Show white paw And so increase your chances of getting approved.
Example:
To make things easier for you, let's take an example with a concrete use case.
Let's imagine a specialized fintech that wants to offer its customers the possibility of opening a bank account.
To offer this offer to its customers, it must prove that it proactively fights against money laundering and terrorist financing (LCB-FT). How? It needs to show that it uses automated systems to monitor suspicious transactions in real time. These systems should be able to detect anomalous patterns of behavior or transactions that match risk profiles.
After proving this, fintechs will be more likely to receive approval from banking institutions.
Having an LCB-FT plan in place therefore makes it easier for regulators to control. This allows not only to stay in compliance, but also prove this compliance in the event of an inspection or investigation.
A solid commitment against fraud and in particular the fight against money laundering and the financing of terrorism (LCB-FT) is essential for a fintech that wants to access international markets.
Indeed, a fintech that demonstrates strict compliance with LCB-FT standards strengthens its credibility and earns the trust of business partners And international customers. It can more easily partner with other businesses, attract foreign investment, and collaborate with financial institutions.
Global businesses and financial institutions are looking for reliable partners who share their commitment to compliance to minimize risks.
In short, compliance with LCB-FT rules is not only a legal requirement, but also a strategic asset for fintechs aiming at international expansion.
Building customer trust is essential for the success and growth of a fintech. By guaranteeing the security of transactions and data, a fintech can not only attract new customers, but also retain existing ones.
Fintech customers often share sensitive financial information, such as account numbers, of credit card details, and personal information.
By implementing robust security measures, such as the data encryption And a strong authentication, fintechs can protect their information from cyberattacks and data breaches. The interest? Show customers that their information is safe.
Online fraud can have devastating consequences for customers and for the reputation of fintech.
By using advanced fraud detection technologies And in monitoring transactions To identify suspicious activity, fintechs can prevent fraud before it happens.
They then show that they are in ability to secure transactions and Encourage customers to use their services.
Are you wondering how to deploy an anti-fraud plan? What are the best tools to use to fight documentary fraud ?
At Finovox, we offer you a counterfeit document detection solution easy to use: Drag the documents that you receive in our platform and Analyze their authenticity in a few clicks. To find out more, ask for a demonstration of our solution!
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