At Money20/20 Europe in Amsterdam, Transact Pay, the e-money institution and BIN Sponsorship provider, broke down how it aims to tackle a lack of access to banking infrastructure, helping fintechs grow and scale in the process.
At this year’s show, we sat down with Transact Pay CEO Aaron Carpenter to discuss the difficulties many fintechs face when trying to launch a new product or grow their customer base.
He explained that most credit institutions and banks aren’t necessarily servicing fintechs in the ‘right’ way, resulting in a major challenge for many firms: a lack of suitable banking support.
Transact Pay aims to address this, by acting as a facilitator of financial services. The e-money institution wants to enable fintechs to start to build their business and grow a customer base without having to become licenced themselves.
It also works closely with regulated financial institutions, which, for example, may wish to provide a current account, but not the debit card that accesses them. In this case, Transact Pay can step in a provide the card themselves – or whichever aspect of credit services isn’t the fintech’s speciality.
Ensuring compliance on behalf of fintechs
For many fintechs, ensuring compliance can be a costly, and time-consuming exercise. With rules and regulations constantly being updated, it can become a complex and arduous process that hinders efforts and operations elsewhere in the business.
Carpenter explains that Transact Pay’s speciality is enabling “fintechs to build a business in a way that is compliant, not just for the short-term, but for the long-term”. It does this by offering a “stable regulatory base” for fintechs to build on. This includes offering them support to develop strong policies and procedures, and advising them on which tools are best to use, and how to configure them correctly.
Support in this way can be invaluable for fintechs looking to launch a new product, enabling them to channel more resources on the launch, with fewer worries about regulators knocking on the door later down the line.
We also explored Transact Pay’s recent developments, launches and plans for the future, as well as the importance of diversity, equity and inclusion for the business in the interview.
Watch The Fintech Times sit down with Aaron Carpenter at Transact Pay
The post Improving Access to Banking Infrastructure and Ensuring Compliance With Transact Pay appeared first on The Fintech Times.
