As a result, financial institutions are pausing taking on any clients they perceive as overly risky. Such clients require additional due diligence work, and should something go awry, the costs of compliance failure can be considerable, from stiff fines to reputational damage. Consequently, traditional financial institutions are shedding customers or refusing to onboard firms who they deem too risky, putting significant strain on correspondent banking relationships.

 

In The De-Risking Threat to Asia Pacific Fintechs report, written in collaboration with Banking Circle, we explore how banks across Asia are re-thinking their customer relationships, and the not so positive implications for fintechs.