Howart Compliance: Regulation and Compliance Is Not an Obstacle to Growth

All fintech companies have to deal with compliance. And according to the regtech and advisory firm Howart Compliance, there’s a distinction between complying with rules and regulation and implementation according to best practice.

Very few have become entrepreneurs because they are passionate about keeping track of financial regulation. But it is impossible to run a successful fintech company without proper compliance. That is why the Nordic consultancy firm Howart Compliance has made it easy for fintech companies to outsource compliance-related tasks – very similar to how most entrepreneurs outsource, for example, bookkeeping.

“With us, our clients can put compliance on autopilot and focus on what they’re best at: running their business. Even the most innovative idea of new ways of doing things in the financial sector requires that the regulatory foundation is in place. And that’s one of the challenges we can assist fintechs overcome,” says Christian Dideriksen, Partner and CEO at Howart Compliance.

Even the most innovative idea of new ways of doing things in the financial sector requires that the regulatory foundation is in place. And that’s one of the challenges we can assist fintechs overcome,
Christian Dideriksen, Partner and CEO at Howart Compliance.

Howart Compliance has one single focus on compliance in the financial sector and has helped financial companies across the Nordics with everything from applying for a license with the Financial Supervisory Authority to implementing and maintaining ongoing compliance.

Compliant or Best Practice?

Howart Compliance provides more than advisory in the traditional sense. There is a difference between living up to the rules and following best practice. And with their work and expertise, Howart Compliance gives their clients access to operational experience and best practice.

“We do not just provide our clients with legal documents or legislative guidelines for them to interpret and implement. We examine the requirements mandated by the Financial Supervisory Authority, the latest guidelines and relevant legislation, and together with the client, we work to implement regulatory requirements in their business the best way possible. And we do so with a quite pragmatic approach, building on our team’s significant experience from the financial sector,” says Dideriksen.

The team at Howart Compliance has significant industry insight from many years’ experience in the financial sector, enabling the team to bridge the gap between regulation and their clients’ businesses. Experience that Howart Compliance also draws on when keeping clients up to date on compliance matters, implementing rules and regulation and when continuously following up on the latest recommendations, guides, and best practices on behalf of their clients.

“We are very pragmatic, we’ve got our feet on the ground, and we have the business acumen to ensure that whatever we’re paid will be well worth it in terms of averted headaches and restful nights – and at the same time often associated with economic gains and cost savings for our clients, as they won’t spend unnecessary time and resources on it,” says Dideriksen.

A prerequisite for Growth

Although compliance is vital in the fintech sector, it is in itself rarely the source of a competitive advantage for a fintech company. Conversely, non-compliance can put an abrupt stop to even the most promising fintechs. Even if you play by the rules, it can hamstring your company’s growth if compliance isn’t managed correctly right from the start. Even the process of applying for a license with the FSA can be an overwhelming process, especially for entrepreneurs with limited experience from the financial sector. And the ongoing work – for instance with preventing and fighting money laundering and terrorist financing – is extensive as well.

“Formulating static business procedures on paper is one thing – it’s something quite different implementing them efficiently in a company. And that is where our experience truly comes into its own,” he says, and adds:

“Howart Compliance is more than just a consulting firm. We are aware that compliance must be automated to a greater extent, which is why many of our resources are also spent on rethinking compliance and development of regtech.”