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As regulatory scrutiny on fintechs and their banking partners increases, compliance leaders must navigate evolving risks, heightened expectations, and the growing role of technology in compliance.
To explore how fintechs can adapt, I sat down with Mercury’s BSA/AML Officer, Sumeet Abichandani, for a deep dive into what’s shaping fintech compliance today. Our conversation covers everything from his career journey, how fintechs should approach build vs. buy decisions to AI’s real role in compliance, regulatory shifts, what fintech leaders should prioritize in 2024, and more.
For fintechs operating in a highly regulated space, having the right compliance technology in place is critical. But the question remains—should companies build their own solutions or buy existing tools?
At Mercury, this decision isn’t made lightly. Sumeet explains that Mercury follows a structured approach, evaluating factors like complexity, implementation speed, and long-term value before making a choice.
“There’s a number of things that get taken into consideration. The big thing is: what makes the most sense for the company at that very point in time?”
For fintechs considering the same decision, it’s essential to weigh whether an off-the-shelf tool is reliable enough to meet regulatory standards without significant customization. If not, investing in an internal build may be the best path forward.
AI is one of the most talked-about technologies in compliance, but how much of its promise is actually delivering results? According to Sumeet, AI in compliance today mirrors the “big data” boom of the 1990s—a powerful tool, but not an all-encompassing solution.
AI can streamline manual processes, reduce false positives in alerts, and enhance onboarding decisions. However, AI is not a replacement for human oversight—especially in complex compliance scenarios where human judgment is required.
“AI is the new big data. It’s going to help streamline manual processes, but there’s always going to be a need for compliance professionals to make sense of the full picture.”
For fintechs looking to incorporate AI into their compliance strategies, the key is understanding where AI adds value—such as automating repetitive tasks—while ensuring human expertise remains at the center of decision-making.
Fintech-bank partnerships scaled rapidly over the past decade, but the regulatory framework overseeing them has struggled to keep pace. That misalignment came to a head in 2024, leading to an unprecedented wave of regulatory scrutiny of fintech partner banks.
Sumeet highlights how fintechs introduced new efficiencies and accessibility in financial services, but how additional regulatory clarity is needed to account for new financial innovations. Instead of proactive regulatory guidance, the industry has seen a rise in enforcement actions..
“The regulatory framework was built long before fintechs emerged. Instead of proactive guidance, we’re seeing regulators respond through enforcement actions.”
For fintechs and partner banks, this shift means that compliance must now be treated as a strategic function—not just a regulatory requirement. Organizations that take a proactive approach to risk management will be far better positioned in the long-run.
For fintech founders and early compliance hires, Sumeet has two pieces of advice:
“The best compliance leaders don’t just copy what banks do. They build compliance strategies that align with their risk and business model.”
For fintechs navigating compliance for the first time, this mindset shift is critical. Instead of just following legacy practices, the goal should be to build compliance frameworks that are both defensible and scalable.
Fintech compliance is changing rapidly, and companies that stay ahead of regulatory expectations will be the ones best positioned for long-term success.
For fintechs and their partner banks, this means:
Watch the full conversation now.
For more information on how Cable can automate testing of regulatory controls and dynamic risk assessments, contact Cable today for a demo.
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2025 Compliance Trends: What Banks and Fintechs Need to Know NowAs regulatory scrutiny on fintechs and their banking partners increases, compliance leaders must navigate evolving risks, heightened expectations, and the growing role of technology in compliance.
To explore how fintechs can adapt, I sat down with Mercury’s BSA/AML Officer, Sumeet Abichandani, for a deep dive into what’s shaping fintech compliance today. Our conversation covers everything from his career journey, how fintechs should approach build vs. buy decisions to AI’s real role in compliance, regulatory shifts, what fintech leaders should prioritize in 2024, and more.
For fintechs operating in a highly regulated space, having the right compliance technology in place is critical. But the question remains—should companies build their own solutions or buy existing tools?
At Mercury, this decision isn’t made lightly. Sumeet explains that Mercury follows a structured approach, evaluating factors like complexity, implementation speed, and long-term value before making a choice.
“There’s a number of things that get taken into consideration. The big thing is: what makes the most sense for the company at that very point in time?”
For fintechs considering the same decision, it’s essential to weigh whether an off-the-shelf tool is reliable enough to meet regulatory standards without significant customization. If not, investing in an internal build may be the best path forward.
AI is one of the most talked-about technologies in compliance, but how much of its promise is actually delivering results? According to Sumeet, AI in compliance today mirrors the “big data” boom of the 1990s—a powerful tool, but not an all-encompassing solution.
AI can streamline manual processes, reduce false positives in alerts, and enhance onboarding decisions. However, AI is not a replacement for human oversight—especially in complex compliance scenarios where human judgment is required.
“AI is the new big data. It’s going to help streamline manual processes, but there’s always going to be a need for compliance professionals to make sense of the full picture.”
For fintechs looking to incorporate AI into their compliance strategies, the key is understanding where AI adds value—such as automating repetitive tasks—while ensuring human expertise remains at the center of decision-making.
Fintech-bank partnerships scaled rapidly over the past decade, but the regulatory framework overseeing them has struggled to keep pace. That misalignment came to a head in 2024, leading to an unprecedented wave of regulatory scrutiny of fintech partner banks.
Sumeet highlights how fintechs introduced new efficiencies and accessibility in financial services, but how additional regulatory clarity is needed to account for new financial innovations. Instead of proactive regulatory guidance, the industry has seen a rise in enforcement actions..
“The regulatory framework was built long before fintechs emerged. Instead of proactive guidance, we’re seeing regulators respond through enforcement actions.”
For fintechs and partner banks, this shift means that compliance must now be treated as a strategic function—not just a regulatory requirement. Organizations that take a proactive approach to risk management will be far better positioned in the long-run.
For fintech founders and early compliance hires, Sumeet has two pieces of advice:
“The best compliance leaders don’t just copy what banks do. They build compliance strategies that align with their risk and business model.”
For fintechs navigating compliance for the first time, this mindset shift is critical. Instead of just following legacy practices, the goal should be to build compliance frameworks that are both defensible and scalable.
Fintech compliance is changing rapidly, and companies that stay ahead of regulatory expectations will be the ones best positioned for long-term success.
For fintechs and their partner banks, this means:
Watch the full conversation now.
For more information on how Cable can automate testing of regulatory controls and dynamic risk assessments, contact Cable today for a demo.
