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It feels like particularly in finance, that startups who disrupt traditional players do so without a full understanding of all the corner cases and none of the
by htrp 1y ago
It feels like particularly in finance, that startups who disrupt traditional players do so without a full understanding of all the corner cases and none of the regulatory accountability which is why those traditional finance players were so expensive in the first place.
- wmf 1y agoIs there any accountability for overly conservative KYC? My understanding from the whole debanking thing is no, at least in the US.
- WJW 1y agoKinda depends on how you define "accountability" of course, but rejecting paying customers is usually frowned upon in business. You want your KYC processes to be conservative enough not to get fined, but not so conservative that you lose out on potential revenue. If you're too far off on either side, you either get fined by whatever regulator you fall under, or you get fined by the stock market because your competitors are more profitable.
- f33d5173 1y agoClosing 1% of accounts instead of .1% of accounts for kyc reasons won't affect your revenue enough to matter to the stock market.
- csomar 1y agoIf you are closing 1% of your accounts every year, then you'd better be growing at more than 1% per year just to break even. If you don't have an appeal process, you'll eventually restrict everybody: Given enough time, some business/person will eventually do a weird transaction that flags them out.
- shkkmo 1y agoThere are international mechanismis for verifying that countries enforce AML stuff like KYC, but no mechanisms for measuring either how effectice it is nor what it's negative effects are.
- foota 1y agoChesterson's bureaucracy
- mjcl 1y agoNot even corner cases. I worked for a fintech that launched a dda-ish product that had 16 digit account numbers, issued sequentially, with no check digits. At launch there didn't seem to be a CS process for dealing with pretty obvious "customer mistyped account number and sent their money to some else's account." problem.
- dboreham 1y agoFeature parity with blockchains.
- solarwindy 1y agoUh, no, most crypto wallet addresses have either a checksum or some other means of typo detection / prevention.
- mjcl 1y agoNot even, in cases where the company couldn't recover funds from misdirected payments they ate the loss. Though obviously I think that's a good thing.