Monica Peethum-Nanoo, Senior Director: Risk and Compliance, Altron Fintech. (Image: Altron Fintech)
The digitalization of payments has evolved the financial landscape, and regulatory compliance and risk management have become critical challenges for fintech companies. With the increasing complexity of global regulations, the stakes for non-compliance are higher than ever, posing significant legal, financial and reputational risks.
Altron FinTech, which positions itself as a leader in the fintech sector in South Africa, is at the forefront of addressing these challenges. In this in-depth discussion, we speak with veteran risk and compliance expert Monica Peethum-Nanoo to learn how Altron FinTech is pioneering innovative strategies to ensure regulatory compliance while leveraging advanced technologies such as AI and machine learning to improve its risks. management framework. From combatting cybersecurity threats to staying ahead of ever-changing regulatory landscapes, Peethum-Nanoo highlights the proactive measures that keep Altron FinTech compliant, secure, and ready for business. future.
What are the key regulatory challenges fintech companies face today, and how is Altron FinTech addressing them?
The regulatory landscape in South Africa is continually evolving, posing significant challenges for fintech companies. Altron FinTech proactively reviews and assesses risks, making necessary process changes to remain compliant. Even if there are obstacles, the company is committed to overcoming them.
One of the biggest challenges for fintech companies is adapting to a complex regulatory environment. Financial services are highly regulated, requiring fintech companies to comply with a wide range of regulations, including anti-money laundering laws and data privacy regulations. Failure to comply with these regulations can result in fines, reputational damage, and even legal action. Altron FinTech helps solve these challenges by ensuring compliance with all relevant regulations and industry standards, which are particularly critical in the financial services sector. For example, NuPay provides businesses with payment processing solutions that are fully compliant with regulations such as PCI DSS and EMV. Delter also provides compliance assistance with reporting to the National Credit Regulator (NCR), accounting and ensuring correct calculations based on NCR rules and regulations.
As financial services become increasingly digital, cybersecurity is becoming a major concern for fintech companies. The risk of cyberattacks is high and businesses must take steps to secure their systems and protect customer data.
How does Altron FinTech ensure data privacy and security in compliance with global regulations such as GDPR or POPIA?
Currently, Altron FinTech is focused on compliance with local regulations such as POPIA, but as the company ventures into international markets, we will integrate GDPR compliance into our operations.
What role does AI and machine learning play in improving regulatory compliance and risk management at Altron FinTech?
AI and machine learning are an integral part of Altron FinTech’s compliance and risk management strategies. These technologies are used in process development to meet regulatory requirements, providing valuable insights and enabling automation of compliance processes. AI-based tools are also used to model guidelines and anticipate emerging risks, providing a proactive approach to risk management.
AI drives compliance programs by providing compliance managers with actionable intelligence and insights. This improves decision-making and ensures regulations are met more accurately and quickly. While AI brings many compliance benefits, such as increased efficiency and reduced costs, it also presents challenges that organizations must carefully address.
AI has various compliance benefits. AI accelerates the processing and analysis of regulatory data, which are essential elements of compliance tasks. This leads to more accurate compliance reporting and decision-making. AI’s predictive analytics capabilities enable organizations to anticipate potential compliance risks before they materialize. By analyzing data trends and patterns, AI identifies areas of concern, enabling proactive risk management. Over time, AI can lead to significant savings in compliance operations by automating routine tasks, reducing the need for manual monitoring, and improving accuracy. AI systems can be updated to remain compliant with changing regulations and standards, ensuring organizations can quickly adapt to new regulatory requirements.
Can you tell us about a recent example where Altron FinTech successfully addressed a regulatory challenge? What lessons were learned from this experience?
A recent example is the National Payments Cybersecurity Directive, where Altron FinTech implemented CIS and PCI modeling to meet the requirements. This experience highlighted the importance of being adaptable and proactive in compliance efforts.
International expansion requires compliance with various regulations, which may vary by country but share some similarities. Acquiring new licenses, such as moving from an e-money license to a full banking license, brings greater regulatory scrutiny and compliance requirements, while expanding into new technologies and services, such as AI, machine learning and cryptocurrency often require additional regulatory compliance. Compliance is essential to delivering a superior customer experience. Customers demand robust and secure interactions, but also expect fast and frictionless experiences. A compliant KYC and onboarding process ensures this balance.
How does Altron FinTech stay ahead of evolving regulatory requirements and what proactive measures are in place to anticipate future regulatory changes?
Altron FinTech uses a variety of methods, including tools from Gartner, the World Economic Forum and LexisNexis, to stay informed of legislative changes. The company also actively participates in industry organizations and seminars to stay ahead of regulatory developments.
Looking ahead, Altron FinTech is committed to being a pioneer in implementing generative AI into its operations to improve efficiency and quality of customer service. The company’s strategic objective includes progressing towards a green economy, filling the gap in rare and qualified resources and ensuring sustainable growth. These initiatives, along with continued efforts to refine the product suite and provide exceptional service, position Altron FinTech on a path to long-term success.
In terms of cybersecurity, the increasing prevalence of threats within the financial sector requires constant vigilance. Altron FinTech’s overall cybersecurity strategy is continually refined to address the sophisticated risk landscape, heightened by the emergence of AI-enhanced threats. Proactive measures to protect systems and data are paramount, and the company remains vigilant to preemptively counter vulnerabilities.
As a pioneer in the field of risk and compliance, Altron FinTech is navigating an exciting era of change. With South Africa’s strong financial pillars, the company is well positioned to become an industry leader, supported by the active involvement of the South African Reserve Bank (SARB) in creating catalysts for inclusion and financial diversity. This is an exciting time for the company as it stays ahead of the curve in this rapidly evolving industry.
Would you like to learn more about Peethum-Nanoo risks and compliance? Listen here to her insights on the All Things Altron FinTech Podcast, where she digs deep into the South African Reserve Bank, regulation and compliance, and all things Altron FinTech.