Compliance 3.0, the Future of Bank Sponsorship, and Lessons from Monzo with Cable CEO Natasha Vernier
Apr 4, 2024
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Natasha Vernier, CEO of Cable, discusses Compliance 3.0 in fintech, lessons from Monzo, and the future of bank-fintech partnerships. Topics include automated effectiveness testing, challenges of selling fintech solutions to banks, and the potential shift toward embedded finance solutions.
Compliance 3.0 emphasizes automated testing for regulatory control effectiveness in financial services.
Lessons from Monzo highlight the importance of data-driven responses to financial crime incidents.
Deep dives
Cable's Innovative Solution in Financial Crime Testing
Cable is an automated financial crime effectiveness testing platform that is revolutionizing the FinTech space. Natasha Vernier, the CEO of Cable, shares insights on the importance of effectiveness testing in financial services. She highlights the need for automated testing to ensure regulatory compliance and prevent financial crimes effectively. Cable's approach focuses on identifying regulatory breaches and control failures to enhance institutions' ability to combat financial crime.
Lessons on Financial Crime from Monzo's Growth
Natasha shares valuable lessons learned during her time leading the financial crime team at Monzo through rapid growth. She emphasizes the critical role of engineers and data science in building a robust compliance framework. The experience at Monzo underscored the importance of immediate data-driven responses to financial crime incidents, showcasing the necessity of proactive monitoring and quick rule implementation to prevent financial losses.
The Transition to Compliance 3.0 and Cable's Role
Natasha explains the evolution from manual compliance controls to Compliance 3.0, where automated testing of controls is crucial. By introducing automated onboarding and compliance checks, institutions can enhance regulatory compliance and mitigate financial risks effectively. Cable's innovative approach aligns with this shift by enabling automated identification of control failures and regulatory breaches, setting a new standard in financial crime prevention.
Challenges and Opportunities in Bank-FinTech Partnerships
Natasha discusses the changing landscape of bank-FinTech partnerships and the rising importance of embedded finance solutions over consumer-facing FinTechs. She explores the implications of banks adopting a more direct role in compliance checks and testing for FinTechs. The potential shift towards banks handling compliance processes could impact operational costs, regulatory relationships, and overall end-customer experiences, signaling a transformative phase in the financial services industry.
In this episode of Fintech Layer Cake, host Reggie Young is joined by Natasha Vernier, CEO and co-founder of Cable, to discuss the future of compliance in the fintech industry, known as "Compliance 3.0."
Natasha shares valuable lessons from her time leading the financial crimes team at Monzo during its hypergrowth phase and provides her perspective on the evolving landscape of bank-fintech partnerships.
The conversation delves into the importance of automated effectiveness testing, the challenges of selling fintech solutions to banks, and the potential shift toward embedded finance solutions.
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