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Globalisation and the rise of Fintech enablers

Published on
March 28, 2024
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The latest iteration of the anti-money laundering directive includes cybercrime for the first time. Here’s what the June 3rd deadline means for crypto, compliance, and customers.

New generation of Fintech companies going global

Historically and across the world, from Canada to China, financial services have largely and almost exclusively operated locally. This has been done with nearly no overlap, as has been the case for many years. In the fintech space, the same has long appeared to be true. Thankfully, the sector is changing for the better at an unprecedented pace, and the fintech game is now quickly expanding and going global. From setting up pan-European operations to expanding in key emerging markets, international growth is now high up on the to-do list for ambitious and trailblazing businesses.

While there are some hurdles to overcome still, including fast-moving regulations, non-linear compliance processes, and strictly regulated financial sectors, the globalisation of fintech is here to stay. Companies continue to expand globally, look to create seamless international digital onboarding processes, and aim to eliminate illicit transactions (like money laundering and terrorism financing) and online fraud.

Multi-market strategy is the new default

Although having a multi-market strategy as a fintech company may be a fairly recent trend and option, it is one that seems destined for continued growth in popularity. How quickly the international focus continues to shift will likely and ultimately depend on the overall global outlook, the evolution of regulatory openness, and the steady but significant rise of fintech enablers.

A growing global outlook for fintech is primarily fuelled by entrepreneurs across the globe, and the key reason for it is simple – it is considerably more practical than finding multiple different local solutions. Second, and perhaps this goes without saying, scaling globally lets you target multiple markets in order to find a solid total addressable market, which in turn can lead to almost immediate and explosive growth.

Light beams all over a big city, visualising the rise of fintech enablers

Evolution in regulatory openness

Meanwhile, we’re also seeing an evolution in regulatory openness, and regulation is an important reason as to why the fintech sector has historically and predominantly been a local affair. It has been notoriously difficult to expand internationally. In countries like the U.S., it has even been hard to expand nationally, as many states have different rules and regulations.

Thankfully, regulators these days are making it more feasible for fintech companies to experiment with, and expand into, brand new markets. This seemingly sudden shift in approach is likely rooted in a shared global desire for innovation, naturally making the fintech industry a key focus area in the process.

This updated and modern approach by regulators is both welcomed and celebrated and will lead to the eventual removal of existing barriers, as well as accelerated international innovation.

The rise of Fintech enablers like ZignSec

Perhaps the most important component in the race for globalisation of fintech, however, is the rise of fintech enablers like ZignSec. Whether you need help with facilitating regulatory compliance, or you’re looking for easy ways to connect to KYC solutions in different geographical areas, you now have enablers like us whom are ready and able to become your global partner.

At ZignSec, we specialize in offering enabling layers and a rule-based engine that decrease the friction of expanding into new markets. We aggregate identification and verification solutions that are scalable on an international level, and offer best-in-class services and no-code management when it comes to compliance, online security, eID, and fraud prevention. We take a great deal of pride in our user-friendly all-in-one platform solution and are actively and effectively taking advantage of regulatory improvements in order to expand our global partnerships across most major international markets.

Let us show you what we can do

Contact us today at sales@zignsec.com or book a demo to learn more about how you can implement automated and compliant workflows for your globalisation and other digital experiences!

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