The Bank Sponsor Crackdown, and Lessons from Stripe and Airwallex with Jas Randhawa
Feb 22, 2024
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Exploring lessons from fintech giants like Stripe and Airwallex, the podcast discusses the importance of compliance technology in safeguarding fintechs. They also dive into the evolving landscape of fintech-bank partnerships and the impact of regulatory scrutiny on the industry.
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Quick takeaways
Importance of creative problem-solving for compliance in fintech companies like Stripe and Airwallex
Necessity for effective communication, due diligence, and tech strategy in managing compliance risks and bank sponsor relationships
Deep dives
Jazz's Experience at Stripe and Airwalks
Jazz Rondawa shares insights from his time at Stripe and Airwalks, highlighting the unique perspective gained from managing compliance programs internally. He emphasizes the importance of addressing day-to-day challenges faced by compliance teams, focusing on creative problem-solving and product collaboration. Jazz discusses the power of product lawyers in decision-making processes and the need for substantiating compliance requirements during product development.
Moving Quickly at Stripe and Airwalks
At Stripe and Airwalks, Jazz experienced the fast-paced environment where product development and innovation were prioritized. He describes the company culture of not taking 'no' for an answer and the agility in bringing products to life rapidly. Jazz emphasizes the importance of creative thinking and problem-solving to maintain safety and compliance while enabling business goals.
Risk and Compliance Scaling with Company Growth
Jazz discusses the evolution of risk and compliance functions as fintech companies grow, highlighting the increase in fraud risk and the adoption of advanced technologies like AI and machine learning. He advises companies to invest in building tools and technologies internally to stay ahead of regulatory requirements and effectively manage risks. Jazz emphasizes the importance of robust risk assessment models and optimized compliance processes.
Navigating Bank Partnerships and Compliance Challenges
Facing challenges in the fintech-Bank Sponsor landscape, Jazz addresses the complexities of bank partnerships and compliance risks. He highlights the need for due diligence in selecting stable bank partners and the impact of bank sponsor scrutiny on fintech operations. Jazz advises fintech companies to focus on effective communication, tech strategy, and controls effectiveness testing to mitigate risks and maintain regulatory compliance.
In this episode, host Reggie Young converses with Jas Randhawa, founder of StrategyBRIX, a fintech risk and compliance consultancy.
They delve into Jas' experiences at Stripe and Airwallex, the intricacies of fintech risk and compliance, and how fintechs can safeguard themselves against regulatory scrutiny.
The discussion also covers the evolving landscape of fintech-bank partnerships and the increasing importance of compliance technology.
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