Fintech companies offering embedded finance products are facing an existential compliance crisis. To survive, they’ll need to overcome not one but two hurdles.

First, the mantra of “move fast and break things” will no longer cut it for companies looking to live in the financing world. They’ll need to take compliance and regulations as seriously as banks have for decades. This is a major challenge for many, who may be running with very small teams and may lack experience in compliance.

Second, they’ll need to handle compliance at a pace that’s unheard of for banks. Technology and embedded partnerships allow fintechs to onboard new merchants at an unprecedented rate. At that pace, a reactive approach to compliance just won’t do. They’ll need the teams, systems, and software in place to scale quickly without negatively impacting the compliance and safety of their products or creating unnecessary risks for their partners and merchants.