Turning regulatory challenges into innovative advantages

Interviewer: Madalin, the fintech space has seen a continuous rise in regulations over the years, and even more are on the horizon. Can you tell us how Maxcode has positioned itself as the go-to partner for navigating these regulatory changes?

Madalin: Absolutely. Fintech is one of the most regulated industries out there, and the regulatory landscape is getting even more complex. Regulations like PSD2, GDPR and eIDAS have already significantly shaped the industry, and we’re now gearing up for PSD3, the Financial Data Access regulation or ‘FiDA’, and updates to eIDAS, among other new regulatory frameworks coming down the line.

Each of these regulations brings both challenges and opportunities, and that’s where Maxcode thrives. We’ve built a track record of not only helping clients stay compliant, but also transform regulatory changes into new business potential. We’re on a mission to power tomorrow’s world, so we don’t just react; we anticipate and create value for our clients. And this proactive, forward-thinking approach is supported by our ‘next level tech’. For example, in the run-up to GDPR being introduced, we developed a consent management application, allowing our clients to seamlessly comply and giving them a competitive edge in privacy management and therefore improved customer trust.

Interviewer: It sounds like you have a strong track record of anticipating regulatory changes. Can you give us more insight into how Maxcode has helped fintech companies in the past, and how that sets the stage for upcoming regulations like FiDA and PSD3?

Madalin: Definitely. When PSD2 was first introduced, many companies were scrambling to figure out how to comply. But it also created an opportunity to offer innovative payment services. In collaboration with our clients, we helped them to navigate this by building secure APIs and solutions that allowed them to meet the regulatory demands while also enhancing their service offerings.

Looking ahead, FiDA will focus heavily on data privacy, transparency and giving consumers control over their financial data – so it is much like GDPR, but specifically tailored to the financial sector with its high-performant solutions. PSD3 is also set to expand upon PSD2’s framework, pushing innovation further by enhancing open banking standards. For fintech businesses, these regulations offer an opportunity to develop secure, sustainable, customer-centric services that can differentiate them in a crowded market.

At Maxcode, we’ve already been through similar transitions, and we know how to translate these regulations into actionable solutions. We’ll be working together with fintechs to develop new products that are not only compliant, but also innovative, giving them a competitive edge through next level tech.

Interviewer: Compliance is often seen as something that mainly concerns larger institutions. How do smaller fintech companies fit into this regulatory environment?

Madalin: Indeed, while compliance often seems primarily geared towards larger institutions due to their scale and the complexity of their operations, it’s crucial to recognize the advantages it can offer smaller fintech companies. FiDA, for instance, democratizes financial data access, which significantly lowers the barriers to entry for startups. Unlike PSD2, which was largely focused on payment services, FiDA broadens the scope to include a wider range of financial products. This expansion not only simplifies integration with established banks and financial institutions but also opens up myriad opportunities for startups to innovate across the financial services spectrum. By leveling the playing field, FiDA enables smaller players to compete more effectively and bring new, innovative solutions to the market.

So while large institutions tend to focus on navigating compliance, smaller fintechs are leveraging these regulations to develop better user experiences, stronger security features and more flexible financial services. At Maxcode, we partner with these smaller players to help them translate regulations into next level tech solutions, empowering them to be leaders in this evolving landscape.

Interviewer: Given the fast-paced nature of fintech regulations, how does Maxcode stay ahead of the curve and poised for future regulatory changes?

Madalin: It’s a combination of constant vigilance, industry insight and in-depth expertise within the Maxcode team. We invest heavily in research and development to align our tech with upcoming developments. We also maintain close relationships within fintech communities, monitor regulatory trends, and collaborate closely with our clients to understand their needs.

This proactive approach allows us to adapt to new regulations before they take effect. Just as we anticipated GDPR with solutions like our consent app, we aim to do the same with FiDA, PSD3 and future updates to eIDAS. And of course, decentralized finance or ‘DeFi’ is another important topic for us. We’re always looking for ways to transform potential compliance ‘burdens’ into opportunities for innovation and growth for our clients.

Interviewer: It sounds like Maxcode is well-prepared for the upcoming regulatory changes. Any final comments on how fintech companies should approach the next wave of regulations?

Madalin: My advice to fintechs is to view regulations as catalysts for innovation rather than just obligations. Each regulation – whether it’s GDPR, PSD2, or the upcoming PSD3 and FiDA – presents opportunities to create better, more secure products and services. So, as new regulations approach, it’s important to stay ahead of the curve, be proactive and always look for the innovative possibilities they bring.

At Maxcode, we’re on hand to help fintechs harness these possibilities to create cutting-edge high-performant solutions, supported by our in-depth experience and focus on delivering next level tech of course. Together, we ensure that fintech companies don’t merely comply, but also thrive in this rapidly changing environment.