What do fintech founders need to understand about compliance timelines?
Short Answer
FCA authorisation takes 6-18 months. PSD2 and Open Banking require API integration (3-6 months). AML/KYC implementation adds 2-4 months.
Full Explanation
A fintech founder plans 9-month go-to-market. Reality: FCA application review alone takes 6-12 months. If they request clarifications (likely), add 3-6 months. Meanwhile, PSD2 compliance requires API integrations with legacy banking partners (slow, bureaucratic). AML/KYC (anti-money laundering, know-your-customer) requires third-party vendor integration and testing. Total regulatory timeline: 12-18 months before revenue. Founder honesty: "We submitted FCA application in Q1 2026. Expected authorisation Q3-Q4 2026. We're building PSD2 compliance in parallel (due Q4 2026). AML/KYC integration with [vendor] is 50% complete, completing Q3. Go-live timeline: Q4 2026, 18 months from start. We've modelled cash runway for 20 months and adjusted growth projections accordingly." This shows maturity. Claiming 6-month go-to-market for fintech is unrealistic. Fintech investors specifically evaluate: what's your regulatory timeline? Do you have legal counsel experienced in FCA? Is your cash plan conservative enough for regulatory delays? Underestimating timelines leads to underfunded companies and failed launches.
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