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Fintech Regulation Risk & Compliance Services
We understand the tightrope walk of running a fintech company in today's regulatory landscape. That's why we offer expert fintech compliance consulting services to keep you balanced and sure-footed.
We partner with fintech startups, sponsor banks, embedded finance platforms, and payment or digital lending providers.
Our mission? Build robust and right-sized compliance programs that meet regulatory requirements. With our senior compliance experts and technology-enabled workflows, you can focus on scaling your business while we handle the intricate legal and regulatory details.
Compliance Management Systems for Fintech Regulation
Fintech and regulation. You can't have the former without the latter.
We specialize in creating compliance management systems (CMS) custom-built for fintech companies. It works seamlessly to identify applicable laws, assess the risk associated you’re your products and services, then develop and implement practical solutions to proactively defend your company.
Our CMS program buildout ensures you're fully compliant.Our CMS programs are designed to align with expectations from applicable regulators, including the Federal Deposit Insurance Corporation (FDIC), Federal Reserve Board (FRB), Office of the Comptroller of the Currency (OCC), the Consumer Financial Protection Bureau, and state regulators.
The CMS (Compliance Management System) is a structured program that helps organizations stay on top of regulations, maintain appropriate oversight, and address risks as they arise. It combines policies, procedures, training, monitoring, and audits to manage risks and keep everything compliant. Banks and regulators expect fintechs to manage their compliance obligations through a right-sized CMS.
Fintechs have a long list of regulations that must be proactively managed, including:
BSA/AML/OFAC
The Bank Secrecy Act, Anti-money Laundering and Office of Foreign Assets Control is a U.S. regulatory regime that requires financial institutions to help stop money laundering and terrorist financing and prevent transactions with sanctions individuals, entities, and countries.
It requires businesses to verify customers’ identities, performing customer due diligence, report suspicious transactions, and keep solid.
Consumer Lending Compliance
The laws and regulations governing consumer credit, such as the Truth in Lending Act (TILA & Reg. Z), Real Estate Settlement Procedures Act (RESPA & Reg. X), and Equal Credit Opportunity Act (ECOA & Reg. B), to ensure fair and transparent lending practices.
It requires businesses to provide clear loan terms and costs, ensure fair lending practices without discrimination, deliver proper disclosures before and during the lending process, and maintain accurate records of lending decisions.
Consumer Deposit Compliance
The laws and regulations governing consumer deposit accounts, such as the Truth in Savings Act (TISA & Reg. DD), Electronic Fund Transfers Act (EFTA & Reg. E), and FDIC insurance requirements, to ensure transparent deposit practices and proper consumer disclosures.
It requires businesses to provide clear account terms and fee schedules, ensure accurate interest calculations, provide timely availability of funds, offer proper electronic transaction protections, and maintain appropriate FDIC insurance coverage.
Consumer Reporting Compliance
The laws and regulations governing consumer reporting, such as the Fair Credit Reporting Act (FCRA & Reg. V), Fair and Accurate Credit Transactions Act (FACTA & Reg. V), and Equal Credit Opportunity Act (ECOA & Reg. B), to ensure accurate credit reporting, proper consumer notifications, and fair credit decisions.
It requires businesses to ensure accuracy of reported data, provide proper notices when taking adverse actions, and give consumers rights to dispute and correct their credit information.
Data Privacy & Security
Adhering to regulations like the Gramm-Leach-Bliley Act (GLBA & Reg. P) and state-specific privacy laws such as the California Consumer Privacy Act (CCPA), ensuring the secure handling and protection of sensitive customer data throughout its lifecycle. This includes data collection, storage, use, and sharing practices.
It requires businesses to implement safeguards for customer data, provide privacy notices, obtain proper consent for data use, and notify consumers of data breaches.
TCPA
The Telephone Consumer Protection Act is a law governing automated telemarketing calls, faxes, and text messages, crucial for fintechs engaging in customer marketing and outreach to avoid costly violations.
It requires businesses to obtain proper consent before automated calls or texts, maintain do-not-call lists, and provide clear opt-out mechanisms.
UDAAP
Unfair, Deceptive, or Abusive Acts or Practices is the most nebulous and dangerous; the regulation that subjectively prohibits financial institutions from engaging in practices that could harm consumers, ensuring fair treatment and transparency in all financial products and services.
It requires businesses to avoid misleading marketing, ensure products work as advertised, and prevent practices that take unreasonable advantage of consumers.
State Laws
The diverse and ever-evolving landscape of state-specific regulations, including money transmitter licenses (MTLs), state lending and usury/interest rate laws, privacy statutes like CCPA, and consumer protection acts, to ensure compliance across all operating jurisdictions.
It requires businesses to obtain appropriate licenses, comply with varying interest rate caps, meet state-specific disclosure requirements, and adapt practices to each jurisdiction's unique rules.
Risk management for fintech companies and financial service businesses
Advoco adopts a proactive, risk-based approach to fintech risk and compliance strategy. We keep a finger on the pulse of your business with regular risk assessments and continuous oversight to ensure you're always prepared for inquiry from banking partners, their regulators (FDIC, FRB, OCC, CFPB), and state regulators.
This is the simple truth: All financial institutions are well aware of the endless regulatory compliance requirements. But every fintech must know it too. Operating in the financial service space means you’ll have to deal with regulatory requirements and bodies at both the federal and state levels. Advoco can be your strategic advantage.
We prioritize our efforts to maximize the value to your business, and minimize the potential risk or impact to the roadmap and end user or consumer. Our risk management services cover:
Risk Assessments
We identify, analyze, and prioritize potential risks across your operations, compliance, credit, and technology, providing a clear roadmap to mitigate threats and ensure business continuity.
Monitoring
Our continuous surveillance of key risk indicators, compliance metrics, and regulatory changes allows us to proactively identify and address emerging risks, keeping your business agile and secure.
Testing
We validate the effectiveness of your controls through rigorous compliance testing and audit preparation, ensuring your systems and processes meet regulatory expectations and stand up to scrutiny.
TPRM/VRM
We manage the risks associated with your third-party vendors and technology partners, from initial due diligence to ongoing monitoring and contract management, safeguarding your operations from external vulnerabilities.
Licensing & Regulatory Readiness
States are becoming increasingly active in their oversight of fintech companies. Depending on the functions your business is performing, you may need to obtain money transmitter licenses (MTLs) or loan brokering, lending, or collections licenses.
Unlike most licensing consultancies, Advoco is a law firm. That means we can help develop a defensive strategy to avoid the need to get licensed. Already in a tricky spot? We can help develop the mitigation strategy and negotiate with the regulator to achieve a more favorable outcome. Our team expertly guides you through consumer loans, asset management, and fintech regulatory readiness with full support.
Whether it's MTLs, fintech lending licensing, exploring bank charters, or something totally out there, we can guide your fintech company through all the federal and state regulatory frameworks with ease.
No matter your focus (payment services, extending credit, etc.), we provide practical solutions that align with federal law and sponsor bank expectations.
Fintech and regulations: Why companies choose Advoco
We are passionate about empowering financial technology companies succeed in the very complex regulatory environment. Here’s how we support your success:
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Help you meet sponsor bank expectations.
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Ensure compliance with evolving financial regulations.
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Build a scalable compliance infrastructure that supports new business models.
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Explore new opportunities in regulatory sandboxes.
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Implement safeguards to protect against financial crimes.
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Handle all regulatory oversight
Regulations apply to everyone; it's unavoidable. But they don't have to be a hassle. Partner with Advoco to create a custom fintech compliance program that delivers regulatory readiness and long-term success.
Ready to scale your fintech without the compliance headaches? Partner with Advoco to build a scalable, risk-based compliance infrastructure that grows with you