Internal Control & Compliance Manager, Newedge Finance, Oluwatoyin Fakorede, has urged fintech startups to prioritise regulatory compliance and integrate technical product engineering principles as they scale their operations.

Speaking at a recent fintech industry forum in Lagos, Fakorede emphasised that adherence to regulatory frameworks is crucial for sustainable growth, investor confidence, and technological innovation.

Fakorede noted that many fintech startups focus primarily on innovation and market expansion, often overlooking compliance requirements and the importance of regulatory-aligned product development.

“Regulatory compliance is not just a legal obligation but a business enabler. Startups that embed compliance into their product engineering processes from the outset reduce risk exposure, enhance security, and build trust with customers, partners, and regulators,” she stated.

She highlighted key areas fintech founders must address, including Know Your Customer (KYC) automation, data protection laws, anti-money laundering (AML) protocols, secure API integrations, and Central Bank of Nigeria (CBN) licensing requirements.

Fakorede emphasised that fintech firms must design products with compliance-by-design principles, ensuring that security, fraud detection, and regulatory adherence are seamlessly integrated into their platforms.

She warned against regulatory breaches, citing recent crackdowns on non-compliant digital financial service providers.

“As regulators intensify scrutiny, fintech companies must ensure they align with the latest guidelines. Failure to comply can lead to hefty fines, reputational damage, or even business shutdowns,” she said.

Beyond compliance, she underscored the role of machine learning-powered risk assessment tools, AI-driven transaction monitoring, and robust data encryption techniques in enhancing regulatory compliance and operational security.

Fakorede encouraged startups to work closely with compliance professionals, legal advisors, and product engineers to navigate the evolving landscape.

“Compliance should not be seen as a roadblock but as a foundation for long-term success. By embedding regulatory frameworks into the product development lifecycle, fintech firms can create resilient, scalable, and market-ready solutions,” she added.

The session, attended by fintech executives, investors, and policymakers, underscored the importance of regulatory adherence in Nigeria’s rapidly growing digital finance sector.