26.02.26 | 5 min

Compliance Is No Longer a Cost Center — It’s a Fintech Advantage

Compliance is no longer just a regulatory necessity. RegTech firms are turning complexity into competitive advantage — proving that smart regulation and smart location strategy now go hand in hand.

A structural shift is reshaping financial services. Fintech is no longer just about sleek apps and instant payments. A growing number of RegTech and compliance firms are emerging as strategic innovation partners.

RegTech (Regulatory Technology) companies use technology to help financial institutions meet regulatory requirements more efficiently — for example by automating reporting, monitoring transactions, and managing compliance across multiple countries.

What was once seen as regulatory overhead is becoming a competitive advantage. These firms understand that compliance, when integrated early, accelerates growth. They also recognize that geographic strategy plays a critical role in scaling internationally. In a recent interview, Ravi de Silva, Founder & CEO of de Risk Partners, highlighted these trends as his global compliance consultancy established its European office in Lucerne.

Innovation Moves Faster Than Regulation

Innovation across digital assets, AI-driven services, fintech platforms, and cross-border products is accelerating. Regulation, however, evolves through slower legislative and institutional processes.

This creates a growing gap between innovation and oversight, increasing uncertainty and risk. RegTech firms help close that gap by translating complex rules into practical systems companies can implement.

For example, a fintech expanding into three new countries must comply with three different sets of rules. Without the right expertise and tools, expansion can slow down significantly.

Global Business, Local Regulation

Financial services operate across borders, but rules are still defined at the national or regional level.

Companies expanding internationally must deal with multiple legal systems, regulators, and compliance expectations at the same time. This tension between global business models and locally defined rules makes compliance expertise not just necessary — but strategically important.

From Defensive Function to Growth Enabler

Compliance was traditionally treated as a defensive function focused on avoiding penalties. Today, leading firms see it differently.

Companies that embed regulatory thinking early can enter new markets faster, reduce operational risk, and build trust with investors and regulators. Compliance becomes part of the growth strategy.

Compliance as Differentiation

Modern RegTech firms are not traditional consultancies working through checklists. They combine industry expertise with advanced technology to help companies scale responsibly.

Take de Risk Partners as an example. Founded by former compliance leaders from institutions such as Citigroup, JPMorgan Chase, and American Express, de Risk Partners supports fintechs, crypto exchanges, banks, and other financial firms in turning compliance into strategic advantage.

«Compliance shouldn’t kill innovation — it should fuel it.»
— Ravi de Silva

Where compliance was once a box-ticking exercise, forward-looking companies now build regulatory strategy into the core of their business models.

Why Location Matters

As firms grow internationally, proximity to regulators and clients becomes a strategic asset. This insight led de Risk Partners to establish a European hub in Switzerland.

«Swiss quality and precision aren’t just reputation — they’re reality: highly skilled talent, stable and transparent regulation, and world-class infrastructure.»
— Ravi de Silva

The decision to locate in Lucerne reflects a broader shift. Scaling successfully is less about being in the largest city and more about being part of the right ecosystem.

Key Takeaways

• Compliance is a competitive differentiator. Integrated early, it accelerates market entry.
• Global scale requires local presence. Regulatory proximity builds trust and resilience.
• The right location matters. Innovation hubs are not limited to megacities; regional centers with global connectivity can offer strong advantages.

Ravi de Silva, CEO, de Risk Partners