In March, fintech startup Revolut received UK banking licensing from the Prudential Banking Authority (PRA) after a five-year wait. Much of the reason for this lengthy mobilization phase was due to PRA’s concerns over the app’s rapid growth, believing Revolut would not be able to keep up with proper compliance needs simultaneously.
With the sheer number of fintech apps that are reporting security issues, it’s clear why regulatory parties like the PRA and the SEC are reluctant to grant licensing to startups like Revolut that are scaling quickly. To hasten the process, startups should build a relationship with regulators prior to mobilization by focusing on consistent, financial literacy-centered messaging.
Partnerships based on trust start with risk awareness and compliance
Revolut’s contentious fight to get licensed was not solely due to the concern over its massive growth. From security breaches to audit issues, PRA had several reasons to hold back on granting Revolut licensing. This strained their relationship, which was further soured after Revolut implied PRA was the holdup rather than its own compliance mistakes.
Rather than seeing regulators as a hurdle to overcome, they should be viewed as a stakeholder to engage. Likewise, risk-reduction and compliance should be by design, not tackled on as an afterthought. Begin building a relationship with regulatory bodies early on, making it clear that you fully understand why policies exist and your willingness to comply with them. Emphasize proactive risk identification and mitigation and start the discussion before moralization.
By engaging with regulators early, you gain a better understanding of existing and upcoming regulations, allowing you to ensure your tech remains compliant as things evolve. A relationship based on safety and collaboration will decrease wait times while also opening new doors. Moreover, it will cut down on the cost of non-compliance by enabling your company to avoid the fines associated with failing to meet standards.
Communicating with regulators by marketing your safety protocols
From a marketing and strategic communications perspective, regulator engagement goes beyond checking the compliance box. With so many different avenues of communication and messaging available, fintech startups should take every advantage to not just gain trust but captivate regulators with how they market risk and compliance practices.
Although leadership features and case studies are classic and well-known strategies, it does not end there. Here are some additional and often overlooked ways startups can engage with regulatory committees and professionals:
- Visual content: Yes, regulators can benefit from infographics, how-to videos and other visual creations that illustrate security in an accessible way that’s aimed at educating lay people.
- Influencer collaborations: It might seem strange, but as long as the influencer is a trusted financial expert, offering exclusive pre-launch testing to industry-verified influencers whose feedback can be included in case studies and repurposed social content will help establish credibility.
- Platform gamification: If gamified tools are rooted in bettering customer financial literacy versus manipulation, regulators will see a serious application eager to help users build a healthy account in an interactive way.
Remember, even what you post, share and create should be documented through a compliance lens, as documenting approval processes and beyond will further underscore your safety-first culture. This will also help messaging remain consistent while also ensuring that it is based on financial literacy and education, all of which you want regulators to have insights into.
Ensure Your Startup is Sending the Right Message
If your fintech is preparing for licensing, expansion, or increased regulatory scrutiny, the right messaging framework can directly influence trust, timelines, and market readiness. ARTÉMIA’s strategic advisors help high-growth companies align communications, marketing and compliance narratives and we are here to support you. Get in touch with us to learn more.
FAQs
How can fintech startups speed up regulatory approval?
The fastest path is early, proactive regulator engagement. Startups that treat regulators as strategic stakeholders rather than gatekeepers are better positioned to reduce friction. This includes transparent documentation, strong vendor oversight, audit readiness, and clear communication around risk controls before formal licensing milestones.
What does compliance-by-design mean for fintech startups?
Compliance-by-design means embedding governance, audit trails, data controls, and risk mitigation into product development from the beginning rather than layering them on later. For fintech startups, this reduces regulatory concerns, lowers remediation costs, and strengthens trust with both regulators and customers.
Why does regulator trust matter for fintech growth?
Regulator trust directly impacts licensing speed, market expansion, and product innovation. When fintech startups demonstrate transparency, responsiveness, and risk awareness, regulators are more likely to view them as credible long-term market participants, which can accelerate approvals and future product launches.
Should fintech startups use marketing to communicate compliance maturity?
Yes. Strategic communications plays a major role in regulatory trust. Messaging that clearly explains governance standards, fraud prevention, security protocols, and consumer protection measures helps position the company as risk-aware and operationally credible. In regulated sectors, trust-building communication can be a strategic growth lever, not just a brand exercise.
What should startups communicate to regulators before licensing?
Before licensing, startups should communicate:
- how risks are identified and mitigated
- vendor oversight processes
- data governance standards
- consumer protection safeguards
- financial literacy and transparency initiatives
- leadership commitment to compliance culture
This helps regulators see that the business understands both the rules and the intent behind them.
