How dedicated teams help fintechs navigate regulatory compliance

In the race to disrupt financial services, regulatory compliance often feels like the hurdle no fintech founder wants to jump. Yet in 2024-2025, with a tsunami of new regulations hitting the industry, compliance capabilities aren't just a legal necessity—they're becoming a strategic differentiator. 
Building teams with the right regulatory expertise has never been more critical or challenging, especially for UK and European fintech companies.

Our dedicated team model is proving invaluable for forward-thinking fintech companies looking to turn compliance from a burden into a competitive advantage. 

The regulatory challenge for fintechs

The regulatory landscape for financial technology companies is undergoing its most significant transformation in years. Consider what's currently on the horizon: 

DORA (Digital Operational Resilience Act)

Coming into full effect in January 2025, DORA introduces comprehensive requirements for digital operational resilience, demanding robust testing, risk management, and incident reporting from all financial entities and their critical tech providers. 

PSD3 (Payment Services Directive 3)

Building on open banking foundations, PSD3 expands access to customer financial data while introducing stricter security measures and new requirements for payment service providers. 

CRR III (Capital Requirements Regulation) 

Implementing the final elements of the Basel III framework, CRR III introduces more sophisticated approaches to credit, market, and operational risk—directly impacting lending platforms and investment apps. 

ESG Compliance

New sustainability reporting requirements demand comprehensive ESG disclosures, impacting everything from investment products to corporate governance. 

For early-stage and growth-stage fintechs alike, these regulatory demands create a difficult balancing act. As one fintech CTO told us:

Yet the consequences of deprioritising compliance are severe: 

• Financial penalties that can cripple growth-stage companies 
• Reputational damage that erodes customer and investor trust 
• Operational disruptions from regulatory enforcement actions 
• Market access limitations when compliance gaps prevent expansion 

Why compliance-ready talent matters 

The challenge isn't just understanding the regulations—it's integrating compliance thinking throughout your product and engineering teams. 

Compliance as a product feature 

Modern compliance isn't a separate function; it's woven into the fabric of product design. Take the implementation of DORA's requirements: 

• Product teams need to design features with operational resilience in mind 
• Security engineers must implement appropriate threat monitoring 
• DevOps teams need to build incident response mechanisms 
• QA specialists must test for compliance scenarios 

Each function requires team members who understand the technical requirements and the regulatory context. 

The in-house hiring challenge 

Building this expertise internally presents significant challenges: 

1. Scarcity of talent: Professionals who understand both fintech and regulation are among the most sought-after in the industry 
2. Cost pressure: Regulatory specialists command premium salaries in major financial centres 
3. Retention challenges: The competitive market makes these specialists difficult to retain 
4. Knowledge currency: Regulations evolve constantly, requiring ongoing training and development 

As Nikolay Penchev, a Software Engineer at Funding Circle team at Pwrteams, noted:

The nearshore advantage 

This is where nearshore teams in Poland and Bulgaria offer a compelling solution. These regions feature: 

• Strong financial services expertise: A tradition of excellence in banking and financial infrastructure 
• Robust regulatory knowledge: Deep understanding of EU and UK regulatory frameworks 
• Technical proficiency: World-class engineering talent at competitive rates 
• Cultural alignment: Similar working styles and business values to Western European teams 
  
  

How Pwrteams' dedicated teams help fintechs stay ahead 

We have developed a specialised approach to building dedicated teams that help fintechs navigate the regulatory landscape while maintaining their innovation momentum. 

Custom-built teams with fintech regulatory expertise 

Unlike generic outsourcing, we build teams tailored explicitly to fintech compliance needs: 

• Compliance-aware developers who understand regulatory implications of code decisions 
• Security specialists with financial services experience 
• QA engineers trained in compliance testing scenarios 
• DevOps professionals experienced with regulated deployment environments 

As Richard Ashworth, Head of Engineering at Funding Circle, observed:

Seamless integration with existing teams 

For compliance to be effective, it can't exist in a silo. Our model ensures that dedicated teams integrate smoothly with your existing processes: 

• Matching work styles and methodologies to align with your team's approach 
• Communication protocols that create transparency across locations 
• Tool compatibility for seamless collaboration 
• Cultural alignment to foster genuine teamwork 

Simon Tarry, Head of Engineering at Funding Circle, emphasised this integration:

Flexible scaling to adapt to regulatory changes 

Perhaps the greatest advantage of our dedicated teams model is the ability to scale in response to changing regulatory demands: 

• Rapid team expansion when new regulations require additional expertise 
• Specialised skill addition to address specific compliance requirements 
• Knowledge transfer between team members to build organisational capability 
• Resource optimisation to focus on the most critical compliance priorities 
  
  

From compliance burden to competitive advantage 

Forward-thinking fintechs are discovering that strong compliance capabilities don't just reduce risk, they create strategic advantages. 

Enhanced trust and credibility 

Demonstrating robust compliance processes: 

• Builds customer confidence in an industry where trust is paramount 
• Attracts enterprise clients with strict vendor requirements 
• Reassures investors concerned about regulatory risks 
• Establishes credibility with regulators for future interactions 

Accelerated partnerships and integrations 

Fintechs with strong compliance capabilities: 

• Close partnerships with regulated institutions more quickly 
• Reduce due diligence friction in procurement processes 
• Minimise integration delays related to compliance concerns 
• Become preferred partners for compliance-sensitive functions 

Funding and valuation benefits 

Investors increasingly recognise the value of compliance capabilities: 

• Reduced regulatory risk translates to higher valuations 
• Due diligence processes progress more smoothly 
• Compliance maturity demonstrates management quality 
• Regulatory strategy becomes a positive investment narrative 
  
  

Why outsourcing regulatory compliance talent is strategic 

Rather than merely filling talent gaps, outsourcing compliance capabilities to dedicated teams represents a strategic approach: 

1. Focus on core differentiation: Your in-house team can concentrate on unique value propositions 
2. External perspective: Dedicated teams bring cross-industry insights and best practices 
3. Scalable expertise: Access specialised knowledge without long-term commitments 
4. Reduced organisational complexity: Streamline compliance management through a trusted partner 

As Georgi Kostov, Tech Lead at Funding Circle team at Pwrteams, reflected:

Future-proofing your regulatory strategy 

The fintech regulatory landscape will only grow more complex in the coming years. Success will depend not just on compliance with today's regulations but on building adaptable teams that can evolve with the regulatory environment. 

Our dedicated team model provides a sustainable approach to this challenge. It combines specialised expertise, cultural alignment, and flexible scaling to turn compliance from a necessary burden into a genuine competitive advantage. 

Ready to explore how dedicated tech teams can strengthen your regulatory strategy? Contact us to discuss your specific compliance challenges and discover how we can help you build a team that makes compliance a strategic strength. 

We help organisations overcome talent shortages by building & operating cross-border IT & Engineering teams. With an industry-leading 4.3% attrition rate and over 700 experts across multiple tech hubs, we specialise in creating dedicated teams that deliver exceptional value while minimising risk.