Financial

Regulation and Fintech Innovation: A Delicate Balance Shaping the Future of Finance

Published

8 months ago

January 30, 2025

By Tim Popplewell, CEO, Scintilla

Fintech innovation and regulatory oversight share a complex and often uneasy correlation. Together, their relationship resembles a dance—a tango—where one leads while the other follows, each attempting to set the rhythm. Yet, the key to success lies in balance. The goal of innovation is to build products and services that solve problems, and the goal for regulators is to ensure that all stakeholders are protected, without hindering the process of innovation. Recent events, such as the $3 billion fine imposed on TD Bank for anti-money laundering (AML) failures, demonstrate this intricate interplay. For emerging fintechs, the lesson from this is clear: compliance isn’t merely a regulatory obligation—it’s a business imperative, innovating an approach to AML and compliance practices early on so fintechs can avoid costly pitfalls while simultaneously driving development forward.

The evolving dynamic between regulation and innovation underscores a broader reality: regulation serves not to stifle fintech but to align its rapid advancements with the interests of consumers, economies, and the broader financial landscape, while protecting all stakeholders in the sector. This alignment is not without challenges. Regulators must perform a delicate balancing act, weighing opportunity against risk and ensuring that fintech’s disruptive potential is harnessed for the greater good. This tango is a continuous negotiation, where each step must be carefully calibrated to ensure progress without missteps.

Innovation creates risk, regulators keep them in check

At its core, fintech innovation arises from necessity—businesses identifying gaps in the market and responding to shifting consumer demands. Whether it’s the rise of digital wallets, peer-to-peer lending platforms, or blockchain-based solutions, fintech pioneers have consistently disrupted traditional financial models to deliver faster, cheaper, and more accessible services. But this industry cycle also produces a side-effect in which risks need to be taken, when changes are being made, and regulators need to ensure that consumers, and the general public are not harmed when these risks are being taken.

Yet, while fintech moves at the speed of innovation, regulators are motivated by a broader set of priorities. Their focus extends beyond market gaps to encompass systemic stability, consumer protection, and economic opportunity.

Regulators are tasked with safeguarding the integrity of financial systems, ensuring fair competition, and mitigating risks to global and local economies. This comprehensive approach often finds itself lagging behind innovation, understandably leaving them in a reactive position. This is not necessarily a flaw but a necessity. By observing the impact of fintech innovations in real time, regulators can craft policies that address emerging challenges without stifling creativity. The result is a regulatory framework that not only protects stakeholders but also creates an environment where fintech can thrive sustainably.

Regulation’s role in creating opportunity

While fintech is often seen as the primary driver of transformation, the real power to shape the financial landscape, in fact, lies with regulators. Their policies establish the standards and frameworks that determine how, and to what extent, innovations are adopted at scale. Far from being mere gatekeepers, regulators can act as catalysts for growth by creating conditions that encourage experimentation while minimizing risk.

Switzerland’s Crypto Valley serves as a prime example of how regulatory foresight can unlock opportunity. The Swiss Financial Market Supervisory Authority (FINMA) has worked to establish clear guidelines for blockchain and cryptocurrency projects. These frameworks have not only attracted major players like JPMorgan but have also provided smaller startups with the clarity and confidence needed to innovate. By defining the rules of engagement, FINMA has fostered a productive environment where incumbents and challengers alike can experiment with new technologies without fear of regulatory ambiguity.

The regulatory environment, when designed thoughtfully, offers a dual benefit. It paves the way for mass adoption by providing consumers and businesses with the trust and security needed to embrace new solutions. Simultaneously, it fosters competition and collaboration, encouraging fintechs to build on established innovations to create even more advanced offerings.

The regulatory objective to protecting the consumer

Amid the excitement of fintech innovation, it’s easy to overlook the most critical stakeholder: the consumer. For all its potential, fintech must ultimately serve the needs of the people who use its products and services. This imperative is central to regulatory agendas, which prioritize consumer safety and trust above all else.

The rapid evolution of digital finance—from the rise of credit and digital banking to the advent of cryptocurrencies and tokenized assets—has created both opportunities and risks for consumers. While fintechs race to capitalize on shifting demands, regulators work to ensure that consumers are not left vulnerable to exploitation or harm.

This focus has driven the development of compliance standards such as AML and know-your-customer (KYC) requirements, which hold financial institutions accountable for safeguarding consumer interests. However, these regulations do more than just protect consumers—they also spur innovation. Fintech companies are increasingly leveraging artificial intelligence (AI) and blockchain technology to streamline compliance processes, demonstrating how regulation can serve as a springboard for technological advancement.

For instance, AI-powered KYC solutions are reducing onboarding times while enhancing accuracy, and blockchain-based systems are creating tamper-proof records that bolster trust in tokenized assets. By prioritizing consumer safety, regulators not only mitigate risk but also create opportunities for fintechs to differentiate themselves through innovation.

The need to manage risk to economies and markets

While consumers are a primary concern, regulators must also consider the broader economic implications of fintech innovation. There’s a reason many new fintech companies are called ‘disruptors’; disruption is inherent to fintech’s DNA, but unchecked disruption can pose significant risks to local and global markets.

Take, for example, the rise of cryptocurrency and blockchain-based finance. By enabling near-instantaneous cross-border transactions, crypto has the potential to upend traditional banking systems. Yet, this same capability has also raised concerns about money laundering and illicit activities, prompting regulators to take a cautious approach.

In Dubai, the Virtual Assets Regulatory Authority (VARA) has established a rigorous compliance regime, not just for cross-border transactions but for fintech companies more widely and the license to operate in this region rests with these requirements.

While the high cost of obtaining a VARA license has limited market entry for smaller players, it has incentivized collaboration within the industry. For example, Scintilla Network, a leader in tokenized real-world assets, has extended its broker-dealer license to partners, creating a collaborative ecosystem where smaller firms can innovate without bearing the full burden of regulatory compliance.

Such examples highlight a crucial dynamic: regulation may introduce challenges, but it also drives solutions. By encouraging collaboration and resource-sharing, regulatory frameworks can encourage an environment where innovation thrives despite—or perhaps because of—the constraints imposed.

Ensuring a level playing field

As fintech matures, regulators face a growing challenge: maintaining fairness in an increasingly competitive landscape. While collaboration has been a boon for the industry, the looming threat of market monopolies is a significant raison d’être for regulators who serve to cultivate equal opportunities for businesses.

Major players are rapidly consolidating their positions, leveraging their scale and resources to dominate emerging markets. But where newcomers and new entrants to the industry may have once held the upper hand with niche offerings and never-seen before USPs, the big dogs are quickly catching up, offering the same if not better services, products and user experiences to its already significant share of the market.

Are we seeing a monopolized market in the making? Perhaps. The competitive landscape is not just an economic issue—it’s an innovation issue. Smaller fintechs are often the source of groundbreaking ideas that challenge the status quo. It will be up to regulators to re-level the playing field for smaller institutions to maintain access to its piece of the growing, global, digital asset pie.

Finding balance in the future of fintech

As fintech and regulation continue their intricate dance, the path forward will require careful coordination. Innovation must be encouraged, but not at the expense of stability or fairness. Regulation must adapt, but without stifling the creative spirit that defines fintech. This balance is not easy to achieve, but it is essential for ensuring that the benefits of fintech are shared widely and sustainably.

Regulation provides the structure, ensuring that each step is deliberate and aligned with the broader interests of society. Together, they navigate the complexities of the financial landscape, charting a course that is both dynamic and secure.

The $3 billion fine levied against TD Bank serves as a stark reminder of the stakes involved. For fintechs, the message is clear: robust compliance is not optional—it is a prerequisite for sustainable growth. By embracing regulation as a partner rather than an adversary, fintech companies can not only avoid costly missteps but also unlock new opportunities for innovation.

In the end, the relationship between fintech and regulation is not a battle but a partnership—a dance that, when executed with care, can lead to a future where innovation and stability coexist.

Financial

From Minutes to Mandates: Elevating the Board Clerk to Strategic Governance

Published

2 days ago

September 18, 2025

Integrator Web-Editor

Professional woman in yellow polka dot blouse smiling in modern office setting with contemporary kitchen design in background.

– A By-Line from Carol Gray, Head of Board Relations, BISR

At British International School Riyadh (BISR), the role of the Board Clerk has undergone a remarkable transformation. No longer confined to minute-taking and logistical arrangements, today’s Board Clerk stands as a pivotal figure, wielding influence far beyond administrative duties to actively shape the strategic direction of the board. This evolution reflects the increasing complexity of corporate governance and the growing recognition of the clerk’s unique vantage point.

As the recent recipient of the ‘Board Clerk of the Year’ award, I have witnessed firsthand how the modern Board Clerk is privy to all discussions, decisions, and supporting documentation. We understand the flow of information, the nuances of board dynamics, and the historical context of strategic choices. This privileged position provides an untapped reservoir of knowledge and insight.

Why Elevating the Board Clerk Role is Critical for Effective Governance

The Board Clerk’s expanded remit means they are now a governance professional, not just an administrator. Their responsibilities include:

1. Anticipating and proactively addressing governance challenges

2. Facilitating effective communication and information flow

3. Supporting strategic discussions with insightful context

4. Ensuring the integrity of the decision-making process

5. Contributing to board development and effectiveness

This transformation is not merely a shift in responsibilities; it demands a different skill set. Today’s Board Clerk needs strong analytical and organizational abilities, exceptional communication and interpersonal skills, a deep understanding of corporate governance principles, and the ability to exercise sound judgment and discretion.

Leveraging the Board Clerk for Better Decision-Making, Compliance, and Board Performance

By ensuring the board is well-informed, compliant, and operating efficiently, the Board Clerk provides the foundational support necessary for effective strategic decision-making. They are no longer just keeping score; they are actively contributing to the game plan, ensuring the board is equipped to navigate the complexities of the modern business environment and steer the organization towards its strategic goals.

Practical Steps for Integrating Governance Professionals into Strategic Board Operations

1.Recognise the Strategic Value: Boards and leadership teams should acknowledge the Board Clerk’s unique perspective and invite them into strategic conversations.

2. Invest in Professional Development: Provide access to governance training, leadership development, and networking opportunities.

3.Embed Governance in Board Culture: Make governance a standing agenda item and encourage the Clerk to contribute insights on compliance, risk, and best practice.

4.Leverage Technology: Use digital tools to streamline information flow, enhance transparency, and support effective decision-making.

5.Foster Collaboration: Encourage open communication between the Clerk, Chair, CEO, and board members to build trust and maximize board effectiveness.

The evolution of the Board Clerk’s role is a testament to the increasing appreciation for the critical role governance plays in achieving sustainable success. By elevating this position, organisations unlock new levels of board performance, compliance, and strategic agility. The Board Clerk is no longer a passive recorder but an active enabler of strategic thinking—helping boards move from minutes to mandates.

I’m deeply honored to receive this recognition from AGBIS. The role of the Board Clerk has truly evolved, and it’s a privilege to be part of a school that understands its strategic importance. This award isn’t just for me; it’s a testament to the collaborative spirit and forward-thinking governance we champion at British International School Riyadh. I’m excited to continue supporting our board as we navigate the complexities of modern education and shape a bright future for our students.

Carol Gray, Head of Board Relations, British International School Riyadh (BISR) Board Clerk of the Year, AGBIS Annual Conference.

Financial

The Clock is Ticking on UAE eInvoicing as the 2026 Deadline Nears

Published

3 days ago

September 17, 2025

Integrator Web-Admin

By Nimish Goel, Partner and Head of GCC, Dhruva Consultants

The UAE has never been a jurisdiction that shies away from bold reforms. From introducing VAT in 2018 to rolling out corporate tax in 2023, the country has consistently demonstrated its willingness to align with global best practices in fiscal governance. Now, with the Federal Tax Authority (FTA) and Ministry of Finance (MoF) preparing to enforce a nationwide eInvoicing regime by July 2026, the stakes are even higher.

A portrait of Nimish Goel, Partner and Head of GCC, Dhruva Consultants — **Nimish Goel, Partner and Head of GCC, Dhruva Consultants**

This is not simply another compliance box to tick. eInvoicing represents a fundamental shift in the way financial data is created, exchanged, and monitored. Once live, every invoice, credit note, representing economic activity—whether for VAT-registered businesses, exempt transactions, out of scope transactions or even historically less scrutinized activities such as financial services, real estate, and designated zones—will be generated in a structured XML format, routed through accredited service providers, and validated in real time.

For finance leaders, the message is clear. The era of static PDFs and delayed reporting is over.

From paper trails to real time oversight

Globally, eInvoicing has proven to be a formidable tool in curbing tax evasion, automating new online services for taxpayers, plugging revenue leakages, and enhancing transparency. Jurisdictions that have adopted similar systems—such as Italy, India, and Latin America—have reported billions saved in fraud prevention and efficiency gains. The UAE has learned from these experiences and is designing a model that not only covers B2B and B2G transactions but also expands its reach to entities outside traditional VAT registration. There is an expectation that eInvoicing will eventually be extended to B2C transactions in the long term.

The result is to achieve full visibility of a Company’s entire transactions. This creates a real time compliance environment where mistakes will no longer hide in quarterly filings—they will surface instantly.

This shift raises the bar dramatically for CFOs and tax teams. Any misclassification in VAT treatment, error in data capture, or system lag could invite audits, penalties, and reputational damage.

Why waiting until 2026 is a risky bet

Too many businesses still view July 2026 as a distant milestone. In reality, groundwork needs to begin now. Data readiness, ERP integration, internal processes and control reviews, and stakeholder alignment are not overnight tasks. They require months—if not years—of preparation. Additionally, the preparation for eInvoicing is time-consuming, especially for Companies in the UAE, as they are currently upgrading their ERP systems or discovering that their current systems lack integration capability.

Companies must immediately begin by assessing whether their existing systems are capable of generating structured XML invoices or if the mandatory data fields are available in their source systems to meet regulatory requirements. Simultaneously, finance teams should engage closely with service providers to ensure seamless integration across platforms. A thorough review of tax treatment is equally important to identify and close any gaps that could cause errors in reporting. Finally, validating digital signatures and aligning with the Federal Tax Authority’s compliance standards will be critical to building a robust and audit-ready framework.

The transition is not merely technical; it is strategic digital transformation that will impact every single point of the organization. Finance functions that embrace early adoption will find themselves with cleaner data, faster refund cycles, and potentially automated VAT filings in the long run. Those who wait will find themselves firefighting compliance failures under intense regulatory scrutiny.

Beyond compliance lies an opportunity to rethink finance

What excites me most about the mandate is not its punitive edge but its transformative potential. Done right, eInvoicing can be the foundation for a smarter, more data-driven finance function. Real-time reporting could allow CFOs to track receivables with unprecedented accuracy, benchmark customer payment behavior, and build predictive insights into cash flow management.

In short, the regulatory push can double as a business opportunity if approached proactively.

The road ahead for UAE businesses

The UAE’s eInvoicing journey is only beginning. The legislative updates expected in 2025 will provide further clarity, but businesses cannot afford to be passive. Those who treat this as a last-minute compliance sprint will struggle. Those who see it as a chance to modernize their finance function will thrive.

At Dhruva, we believe the next 10-11 months are critical. Our role is not just to interpret regulations but to help businesses reimagine compliance as a value-creating exercise. The clock is ticking, and July 2026 is closer than it seems.

The question for every business leader is simple. Will you be prepared when the switch is flipped to real time?

Financial

Long-term wealth investing: first paycheck to million

Published

2 weeks ago

September 9, 2025

Integrator Web-Editor

By Raaed Sheibani, UAE Country Manager, StashAway

Long-term wealth investing is how you turn a first paycheck into lasting freedom in the UAE. With long-term investing, you build a safety net, automate contributions, and let compounding do the heavy lifting—so today’s income becomes tomorrow’s options.

Long-term wealth investing basics: start here

Before your first trade, set a safety net. Build an emergency fund covering 3–6 months of expenses. Keep it liquid and low risk. Then, park it in a cash management solution rather than an idle current account. Inflation erodes purchasing power; a sensible yield helps you sleep at night and stay invested during shocks.

Two engines of long-term wealth investing: DCA & compounding

Dollar-cost averaging (DCA). Invest a fixed amount on a schedule—regardless of headlines. Sometimes you buy high; often you buy low. Over time, your average cost smooths out, emotions calm down, and you capture the market’s trend. Historically, many of the market’s best days cluster near the worst; therefore, timing often backfires, while DCA keeps you in the game.

Compound growth. Returns earn returns. Start earlier, and compounding does more of the work. For example, with a 6% annual return, investing about $490 per month from age 25 can reach $1 million by age 65. Wait until 35 and you’ll need roughly $952; at 45, it’s about $2,023. Time in the market beats perfect timing.

Build your core portfolio for long-term wealth

Your core is the engine. Aim for a globally diversified, long-only mix across equities, bonds, and real assets. Avoid “home bias”; spread exposure across regions and sectors. Moreover, automate contributions so the plan runs while you work.

Consider risk in layers. Equities drive growth. Bonds dampen drawdowns and fund rebalancing. Real assets, including gold, add diversification. Rebalance periodically to lock in discipline: trim winners, top up laggards, and keep risk aligned to your goals.

Make the math work for you

Consistency compounds. Invest $1,000 monthly for 20 years at 6% and $240,000 in contributions can grow to over $440,000. The gap is compounding plus habit. Likewise, fees matter. Lower costs leave more return in your pocket, and tax-aware choices improve after-fee, after-tax outcomes.

Add satellites—without losing the plot

Once the foundation is solid, consider a core–satellite approach. Keep 70–80% in the core. Then, use 20–30% for targeted themes: clean energy, AI, healthcare innovation, or specific regions. Thematic ETFs can express these views efficiently. Because satellites carry a higher risk, cap their size and set clear review dates. If a theme drifts off the thesis, rotate back to the core.

Look beyond public markets as wealth grows

For qualified, higher-net-worth investors, private markets can broaden opportunities. Many large, fast-growing companies stay private longer. Select exposure to private equity, private credit, or venture—sized prudently—may enhance diversification and long-run returns. However, consider liquidity, fees, and manager quality. Align commitments with your time horizon so you never become a forced seller.

Guardrails that keep you on track

Write an Investment Policy Statement (IPS). Define risk level, contribution cadence, rebalancing rules, and when you’ll make changes. Then, automate to reduce decision fatigue. Additionally, track a few metrics: savings rate, fee drag, drawdown tolerance, and progress to goals. Celebrate streaks—months contributed, quarters rebalanced—to reinforce behavior.

A simple roadmap to your first million

Fund 3–6 months of expenses.
Automate DCA into a diversified core.
Rebalance on a set schedule.
Add satellites thoughtfully, 20–30% max.
Review fees, taxes, and liquidity.
Increase contributions as income rises.

Long-term wealth investing is not a secret. It’s a system: foundations first, habits next, scale last. Start small if needed, start now if possible, and let time do its quiet work.

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