Not restricted by the many regulatory requirements expected of conventional banks, fintechs have actually leveraged their position as disruptors in the market, promoting their ability to use more nimble services at lower rates.

However, says Ibrahim Toyeeb, CEO of worldwide payments and collections company, Leatherback, while there is no doubt that fintechs have actually interrupted the monetary services market, the word ‘interruption’ has actually been over-used in the fintech field.

“Technology, regulation, experience and innovation ought to go side-by-side. It should not refer one or the other. The ability of fintechs to avoid policy has created mistrust amongst consumers, who are significantly voicing their need to be guaranteed that their money is safe.

“That is why– when we began Leatherback– we chose to see guideline as our friend, rather than our enemy. From the beginning, our model was always to get licenses in the nations we run in,” he says.

Leatherback’s licensing approach is rooted in the understanding that getting straight certified helps develop trust with clients, and offers them with the assurance that comes with understanding they are handling a totally regulated entity.

Leatherback started the licensing process in the United Kingdom (UK) and Canada. “Notably, we are licensed with the Financial Conduct Authority (FCA) in the UK, which is the highest regulative body on the planet. This indicates we are held to very high requirements. We benchmark all our processes against the FCA and our systems are structured to adhere to all FCA requirements.”

Despite the onerous processes associated with getting licenses, Toyeeb states Leatherback is also Electronic Money Institution (EMI)-accredited in the UK, which permits it to use electronic money services in the nation.

“At the exact same time, we obtained a license in Canada as a money service organization, a relocation that was aimed at making our Canadian clients feel comfy with our platform and providing them with the same level of convenience they get from their banks and other monetary services providers,” he includes.

Leatherback is presently certified– or in the procedure of being licensed– in 13 other countries it runs in. “Every regulator expects us to satisfy specific technological requirements and partnership requirements. We are going through all of these regulative processes and applications to ensure when consumers hear the name Leatherback, they feel comfortable hearing it. They understand they are dealing with a correctly structured and fully controlled organisation that will keep their money safe and provide the very best possible service,” states Toyeeb.

The technology company is being licensed in developed and frontier markets. While regulators in a few of these markets might not be up to date, Leatherback has actually communicated with regulators to guarantee that it provides the best services to its customers.

By becoming certified, Leatherback does not need to take advantage of third party suppliers. “Because we are accredited, we can tap straight into the regional infrastructure in every country, which suggests we have the ability to provide first-layer services to our customers. This indicates not having to aim to a regional party, with its own layer of rates. Licensing helps us provide more budget friendly services to our customers, which is why our international accounts are totally free. Nobody does that in the market today,” keeps in mind Toyeeb.

Leatherback has, however, joined hands with identified and dependable solutions service providers such as Currency Cloud, which provides account solutions in the United States and parts of Europe, ClearBank, among the biggest banks in the UK. It has actually also partnered with 4Stop, a Know Your Customer (KYC), compliance and anti-fraud solution company, and Yes Bank in India. Today, Leatherback has more than 40 partners worldwide, and collaborations with about three banks in each country it operates in.

Ensuring it operates within regulative confines does not imply Leatherback has jeopardized on innovation. “We are committed to offering our clients with a distinct monetary technology experience that helps them explore various chances, while at the same time not erring on the wrong side of policy.

“We comprehend that regulation, in one way or another, needs to catch up with development, but we enjoy to help play a meaningful function in bridging the space with various regulators in the sector,” concludes Toyeeb.