Michael Rustom is a tech consultant and sales strategist with 30 years of experience in helping businesses streamline their operations through customized IT systems. Over the years, Rustom has worked with businesses in mining, government, and financial technology (Fintech), where he has worked on optimizing efficiencies and security. As a private IT consultant, Rustom knows well the challenges fintech businesses have and offers invaluable insight on using tech for organizations to stay ahead with top security levels.
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Q: What are some of the biggest tech issues fintech businesses struggle with right now?
Michael Rustom: The biggest challenge fintech companies face is balancing innovation with security. Because they are trying to push the limits of technology to provide better services with blockchain, AI, and mobile platforms, they are bigger targets for cyber threats. Ensuring that these advancements don’t compromise the security of sensitive financial information will be critical. Scalability is another big concern. Fintech companies need systems that can handle rapid growth while maintaining speed, reliability, and regulatory standards. Addressing these concerns regarding innovation and security requires a deep understanding of technology and the regulatory environment.
Q: With digital financial services becoming more popular and data security becoming more important, how can fintech businesses use technology to optimize operations and protect sensitive client data?
Michael Rustom: Fintech companies need to automate repetitive processes like customer onboarding, transaction processing, and compliance reporting to improve their operations. AI automation helps minimize human error and improves efficiency. From a security perspective, there should be a focus on advanced encryption technologies and multi-factor authentication to keep sensitive data and information secure. Additionally, using machine learning-based real-time fraud detection systems to prevent potential threats before they affect the business. Fintech companies can create more secure user experiences by adopting a proactive approach and enabling automation for efficiency.
Q: Fintech works within a complex, regional regulatory environment. What can technology do to help FinTech businesses meet these regulatory requirements?
Michael Rustom: Technology can help fintech companies remain compliant with changing regulations. For example, smart compliance solutions, like regulatory technology, allow real-time transaction monitoring and can automatically create reports for auditors or any regulatory body. These systems are also capable of alerting companies to any compliance risks that could possibly be brewing before they have the opportunity to spiral out of control, so necessary action can be taken. Blockchain is another technology that can improve transparency and accountability to ensure that there is an immutable record of financial transactions. As regulations change, staying abreast of developments and ensuring your technology can adapt is key to staying compliant and avoiding fines.
Q: How important is a well-designed IT infrastructure in ensuring the success of a fintech business?
Michael Rustom: A strong IT infrastructure forms the core of a successful Fintech business. It should be scalable so it can deal with higher transaction volume, and agile, so it can accommodate new technologies. Cloud computing, for instance, provides flexibility and scalability, enabling businesses to grow their operations without massive up-front investments. In addition, a robust security network and disaster recovery systems help a FinTech startup recover from cyberattacks and system failures. Also, a well-structured IT support service ensures seamless integration between different platforms and services, which enables seamless user experiences and boosts operational efficiency.
Q: What advice would you give to new Fintech companies who are looking to scale in a competitive field?
Michael Rustom: Fintech startups should make security their number one priority in the early stages. Startups may not have the same resources as a bigger company in the industry, but that doesn’t mean they should compromise on keeping client data secure. Companies should plan for scalable, secure systems from day one. Another important tip is to remain flexible. The Fintech industry is changing quickly, and technology needs to be capable of updating with these trends. Focus on creating partnerships with current financial institutions, technology providers and regulators early on. These relationships will be vital as a company grows. Lastly, let’s not forget about customer experience. Solutions must be high-tech and user friendly for clients.