Financial technology, or fintech, firms are disrupting the financial services industry with their nimble structure and innovative payment, banking and wealth management services. Despite the popularity of these payment apps, however, there is growing concern from consumers and regulators that some fintech firms, in their haste to get ahead of their more-established competition, may not have focused enough on security and privacy controls. A governing dynamic long known to established financial institutions is that success (or failure) brings regulatory scrutiny.
Control functions such as risk, compliance and security are perceived to have an adversarial relationship with innovators, who sometimes sidestep compliance in favor of speed to market. Innovation needs to be balanced with security, fraud, risk and compliance requirements from the earliest design phases of any technology transformation project.