Onboarding delays don’t just slow growth

This past week, things continued moving forward at a steady pace. More client meetings were scheduled, more deals were closed, and more podcast recordings were lined up. Growth is not explosive, but it is steady.

But even in the middle of these wins, one thing kept standing out to me: how much time gets lost in following up with people.

Many prospects and clients want things done immediately, but the urgency disappears when it is their turn to act.

That pattern is frustrating in day-to-day business, but in fintech, it is far more than an annoyance. Delays are not harmless. They carry real weight.

Why Delays Are Different in Fintech

In most industries, a delay simply slows down momentum. The project takes longer, the deal drags on, or the customer gets frustrated. While none of that is ideal, it rarely escalates into anything more serious.

In fintech, however, delays have a very different consequence. A missed timeline can draw attention from regulators. A seemingly minor holdup in your operations could put your company directly under the microscope of RBI, SEBI, or another authority.

For example, I have seen this happen in KYC and AML processes. Many teams think of onboarding delays as an operations hiccup - the customer is annoyed, but eventually onboarded.

In their eyes, the problem is solved once the customer is active. But regulators do not see it this way.

To regulators, a delay in KYC or AML is not a customer experience issue. It is a sign of possible non-compliance. And once you are in their line of sight, the consequences can pile up quickly:

• Regulatory penalties for missed timelines

• Compliance reporting failures that create red flags

• Reputation risks that compound with every misstep

And even if the delay is caused by your KYC partner or an external vendor, the regulator will not go to them first. They will come to you because your name is on the platform and your license is at stake.

Protecting Yourself from Delays

This is why fintech contracts must address the risk of delays directly. Vague assurances or “best effort” timelines are not enough. You need clear, enforceable terms that set expectations and allocate responsibility.

Here are a few ways to do it effectively:

1/ Lock in turnaround times – Do not leave timelines as informal expectations. Make them contractual obligations that vendors and partners must meet.

2/ Define ownership of delays – If a partner is responsible for a bottleneck, their liability should be clearly stated. You should not bear the regulatory burden for their mistakes.

3/ Specify remedies – Be clear on the consequences of missed deadlines. This could mean penalties, service credits, or even termination rights if the failures persist.

This is not about being harsh with your partners. It is about protecting your company from becoming the one held accountable for someone else’s inefficiency.

Why This Matters

Delays in fintech are never just delays. They are potential compliance failures, and compliance failures are what regulators take most seriously.

A single missed deadline can create a chain reaction that leads to investigations, penalties, and lasting damage to your reputation in the market.

By setting contractual protections upfront, you are not just protecting your business legally - you are protecting its ability to scale without unnecessary risks.

TL;DR

In fintech, delays are not harmless. They can trigger regulatory scrutiny, penalties, and reputational damage.

To protect your company:

• Make turnaround times contractual

• Assign liability clearly when partners cause delays

• Define remedies for missed timelines

Without these safeguards, you risk paying the price for problems you did not create.

Conclusion

Fintech is one of the most tightly regulated industries, and regulators rarely distinguish between your mistakes and your partner’s mistakes. If something goes wrong, they see your name, your platform, and your responsibility.

That is why delays cannot be brushed off as operational hiccups. They need to be anticipated, managed, and written into your contracts from day one.

The companies that survive and scale in fintech are not just the ones with the best technology - they are the ones that understand where risks hide and design their agreements to keep those risks at bay.