No one audits your Fintech company - until everyone does.

At the beginning, everything seems to be running smoothly. You’ve got your makeshift setup, probably thrown together with whatever resources you could find.

Your contracts look more like generic templates than custom agreements - flexible but missing the fine details.

You’re embracing a laid-back “we’ll figure it out later” vibe; after all, during the early days of your business, this approach actually works - sometimes even surprisingly well.

You’re operating on a small scale, which lets you make quick decisions and experiment without much hassle.

Your speed gives you an advantage, and that fresh startup energy means no one is really questioning your every move just yet.

But, as with all good stories, things start to change as you grow.

You begin attracting more users, raking in more revenue, and catching the eye of the marketplace. While all this growth is exciting, it also brings something unexpected.

Here's what changes

As your business expands, regulators start to pay attention. They begin examining how you operate, and your investors become more inquisitive, no longer satisfied with vague reassurances.

Those processes and systems you set up from the get-go? They start to hit some bumps in the road, especially around the time you hit that 500-day mark.

In my time working in the fintech sector, I've seen this happen way too often. Sure, speed and flexibility are great, but it’s the solid structure and good practices that really set the stage for long-term success.

So, while it’s good that you’re growing, it’s important to stay on your toes.

The legal and compliance issues you might have brushed aside in the startup phase aren’t just going to disappear; they’ll turn into major headaches if you ignore them.

The way I suggest you do it

To make sure your legal setup is ready for what’s next in the complex fintech landscape, here are my few handy tips:

1) Do regular legal checkups

Every six months or so, take a good look at your contracts, compliance policies, and data handling procedures.

This way, you’ll avoid surprises from regulatory alerts or issues that pop up. Partner with legal experts who know the fintech scene to keep you updated on regulations from bodies like the RBI and SEBI.

2) Revamp your contracts

As your offerings get more complicated, swap out those generic contracts for agreements that actually fit what you do now.

Make sure your terms with banks, payment partners, vendors, and customers reflect your current size and the risks that come with your evolving services.

3) Keep up with regulatory changes

Stay on top of updates from the RBI, SEBI, and the DPDP Act to dodge compliance problems. Subscribe to official news and industry updates so you’re always in the loop.

When laws change, like new KYC requirements, make sure your systems are updated right away. Assign someone to keep an eye on compliance, ensuring everyone knows their responsibilities.

4) Update your compliance process

As your user base and transactions grow, your compliance processes need to keep pace.

Maintain a clear documentation trail of all legal and compliance decisions to ensure transparency and accountability.

5) Train your team

As your company gets bigger, make sure your internal teams understand the latest compliance processes, deal-making steps, and how to escalate issues.

Hold regular training sessions for both new and existing employees on data privacy, anti-fraud measures, and how to handle data properly.

6) Build for growth, not just survival

Expect that as your revenue climbs, you’ll face more scrutiny. Investors and regulators will want proof that you’re compliant, and they’ll expect this to be built into your workflow from the start, not just an afterthought.

Put resources into improving your documentation, invest in compliance tech, and formalize board oversight as your company matures.

Final thoughts

It’s important to build resilience along with that growth momentum. So, set up your next legal check-in soon. Refresh your contracts before facing any regulatory challenges.

Make sure your foundational aspects are solid and prepared to handle the complexities of Day 500 and beyond.

Also, being prepared generally is key to winning in the fintech space. Because it acts as a protection against potential issues.

And the proactive approach is what lays the groundwork for lasting success in a competitive market.