Regulatory Non-Compliance: The Leading Cause of Fraud in Fintech, Says Stanley Jacob

CEO of Zest Payments (a subsidiary of Stanbic IBTC Holdings PLC), Dr. Stanley Jacob, has highlighted that a significant number of fraud cases in fintech stem from regulatory non-compliance by both fintech firms and their clients.

Dr. Jacob made this disclosure, while speaking at the Businessday Fintech in Africa: Navigating Cross Border Regulation event. He said, “Most of the fraud cases we see are man-induced. They have been caused by non-compliance of regulators and the path of the consumers. There is a need for compliance to standards, compliance to regulations and also, compliance to certifications, in the fintech industry”.

He further emphasized the critical importance of adhering to industry standards, regulations, and certifications, while stressing that compliance with regulatory and legislative requirements is essential for effective participation in the fintech sector.

Also, he pointed out how compliance plays a crucial role in addressing consumer concerns about financial security, noting that adherence to regulations helps build trust and confidence among users, thereby influencing investment decisions positively, while stating that compliance should be seen as non-negotiable and fundamental for operating in the industry, regardless of personal opinions about regulatory rules.

Furthermore, he highlighted the need for mentorship programs to support emerging innovators in fintech. He underscored that beyond regulatory compliance, mentorship plays a vital role in nurturing the next generation of fintech disruptors.

Source: Businessday