Financial services are regulated, and often for a good reason: without regulation weaker market participants might be taken advantage of, and if markets fail abruptly then this often imposes large costs on everyone.
Regulation for financial services is here to stay, and everyone operating must comply. This can be at times painful, especially as it is often shielding incumbents. This is not only bad news for Fintech companies trying to break into established markets: a well executed regulatory strategy not only allows start-ups to enter markets more easily, but also can in turn shield them from competitive threats of other start-ups coming after them.
When a company is starting up regulatory requirements are small, but they increase rapidly when a company is scaling, and planning the regulatory strategy ahead of time is indispensable to avoid stalling due to regulators being slow.
Going through regulatory texts is hard: the relevant regulations amount to thousands of pages of dry legalistic prose. This book clearly explains the purpose and structure of the regulatory environment, and provides Fintech executives with frameworks that enable them to quickly develop an effective regulatory strategy.
The first part why financial services regulation exists, what its goals are, and how Fintech executives can use regulation to gain a strategic advantage for their companies. The second part identifies the most important ones, and then distilling the thousands of pages of that still remain into about 100 pages in the book.
Stefan Loesch is a theoretical physicist by training, and he also holds an MBA degree from INSEAD. At the beginning of his career he was leading Paribas derivatives quant research for FX and equities world wide. After the MBA joined McKinsey and later J.P.Morgan where he advised banks on capital optimisation under the Basel regulations.
After leaving J.P. Morgan, he built an edtech platform for business schools, and he was invited to join the PRMIA Education Committee, and to co-edit and co-author the most recent revision of the PRMIA Handbook, the study guide Professional Risk Manager exam. More recently, he was serving as CTO of an early stage start-up in the non-traditional lending space. He now works in the crypto currencies space, working on structures to link them to traditional markets.