Payments, investing, financial planning and lending often spring to mind as “classic” fintech startups, but other business models like regtech, compliance, human resources and marketing are on the ascent. The tireless pursuit of building innovative technology is critical and fundamental. To be successful in financial services, significant time and effort needs to be dedicated to these fundamentals: corporate setup, privacy, and security.
Financial service presents unique challenges for fintech startups as the regulatory and operational requirements for third-party vendor assessment and management are stricter compared to other industries. Issues that might go overlooked during the early stages of product design and team-building could turn into obstacles during the sales process.
Understanding the dynamics procurement process is essential if you want to negotiate it as quickly and seamlessly as possible. And before diving head-first into the development of your app, consider the following questions:
- Is my technical architecture secure?
- Who is responsible for cybersecurity in the organization?
- What types of business insurance do I have and do they cover the right risks?
- How do I manage privacy regulations like GDPR and CCPA?
- Does the company understand the outsourcing mandates of Appendix J, the SEC and FINRA?
Theta Lake’s Marc Gilman offers practical observations about the preparatory work to set your fintech startup up for success. These tips can help ensure that your practices match customer expectations and expedite procurement.
This guest article was first published on TechCrunch (https://techcrunch.com/2020/02/07/recommendations-for-fintech-startups-navigating-the-procurement-process/) . Marc Gilman is general counsel and VP of Compliance at Theta Lake. He is also an adjunct professor at Fordham University School of Law.