The current risks within the financial technology (fintech) sector were analyzed in a recent report by Fenergo. According to the study, 42% of risk and compliance officers at fintech payments companies report that navigating user experience during compliance operations in adopting FedNow, a payment service operated by the Federal Reserve, is challenging. Sixty-nine percent expressed worries that neglecting FedNow adoption would negatively affect business operations.
The report found many concerns among risk and compliance officers in fintech payment companies. Inadequate staff training topped the list at 78%. When questioned about the processes requiring immediate attention for FedNow adoption, 62% highlighted either insufficient real-time transaction monitoring or limited data encryption and security measures.
For 43%, the struggle lies in predicting future compliance needs amid regulatory shifts, while 30% say their company prioritizes sales-driven projects over compliance, risking regulatory fines and long-term reputation damage.