Nice article on the regulations that fintech startups have to navigate: lending laws, securities regulation and broker dealer and investment adviser licensing requirements. The irony is that many of the opportunities have been created as a result of regulations that restricted the incumbents from competing
Innovation, growth, technology, user experience, revenue and gross margin have become synonymous with how you define success for a tech startup. What is missing from this list is local, state, and federal regulation; terms that startups in the financial technology sector understand far too well as either barriers to or catalysts for growth and early success. Regulation is one of the most significant hurdles for fintech companies to overcome. As stated so eloquently by Charles Moldow of Foundation Capital when referencing marketplace lending platforms, “it’s neither quick to start nor easy to scale a marketplace [lending] platform. And out of all of the barriers to entry, none are as significant and necessary to get right as state and federal regulations.”
unknownx500
