The Anatomy of Risk in FinTech: Adapting to Speed and Complexity

An interview with one of our speakers at the 19th Annual Banking Operational Risk Management Summit, 19 - 20 February 2025, InterContinental Hotel Vienna.

How can FinTechs create secure, seamless experiences that satisfy today’s demanding customers?

1. How do FinTech’s rapid innovation cycles impact risk management and compliance?

The rapid innovation cycles in FinTech drive a fundamental rethinking of traditional risk management and compliance practices. As a FinTech, you must be exceptionally resilient, agile, and quick to adopt the latest technologies while maintaining a close collaboration with regulators to navigate a fast-evolving landscape. This dynamic environment facilitates a highly proactive approach to risk identification, robust security measures, and a delicate balance between ensuring compliance and fostering innovation. 

2. What unique regulatory risks do digital-only banks face?

Operating in the FinTech environment presents a striking contrast to the traditional banking model. Let’s take a closer look at several considerations:

a) Increased complexity in risk identification due to the speed of change:

The fast-evolving nature of FinTech often leaves traditional risk frameworks struggling to keep pace. Risk managers must remain ahead of constantly evolving products and services that could introduce potentially unforeseen risks into the system.

b) Balancing global expansion with compliance:

As FinTech organisations operate internationally, they must navigate a complex web of diverse regulatory environments, each with its own set of rules and timelines. This creates a far more intricate compliance landscape compared to traditional banks, whose business models are generally confined to well-established, regional markets.

c) Higher customer expectations for transparency & trust:

Nowadays, customers demand greater transparency, speed and ease, with less bureaucracy, all while maintaining high levels of security in digital financial products. Failing to meet these expectations, especially in such a highly competitive environment, can lead to lost customer trust, reputational damage, and, ultimately, market share decline. Therefore, it’s vital for FinTech companies to be always ahead of the innovation wave, continuously adjusting the ways of working, risk practices & mechanisms to the changing reality, offering a simple yet secure customer experience that continuously adapts to the evolving needs of the customers.

3. How have prior roles at Volkswagen Financial Services, ING, and Societe Generale influenced your strategies at N26?

Although the banking industry is increasingly being reshaped by digital transformation and AI, traditional banks still continue to dominate the space. Why is that? I believe the key lies in understanding how to build long-term, trust-based relationships—not only with customers but also with regulators.

At Volkswagen Financial Services, I learned how to implement scalable products and services across diverse markets. This experience was invaluable in understanding the importance of building effective management systems from scratch when entering new markets while ensuring full compliance with both local regulations and German regulatory standards.

From Société Générale, I learned the importance of a robust internal control system that spans the entire organisation—an essential part of any sustainable financial institution. This focus on comprehensive oversight became a cornerstone for group-wide initiatives and continues to influence my approach to organisational governance.

Finally, my time at ING, with its global reach and emphasis on agile banking, provided me with extensive experience in digital transformation. The integration of new technologies, products, and services into a global framework—while maintaining operational efficiency and continuous growth—was a critical lesson in balancing innovation with sustainable operations.

To summarise, I view my traditional banking background as a solid foundation for navigating the high-speed and ever-changing FinTech environment. It offers the necessary depth and perspective to understand the challenges, transforming them into opportunities in building a successful, digitally-forward financial institution like N26.

Short speaker BIO:

With 10+ years of experience in leading teams in governance, non-financial risk and internal controls, Viktoria Reiniger specialises in aligning risk regulations with strategic business goals. 

Throughout her career, she's had the privilege of working with top organisations, including Volkswagen Financial Services, Société Générale & ING. Passionate about preventing failures and building trusted risk cultures, she focuses on identifying vulnerabilities that protect both businesses and their customers.

Currently, Viktoria leads Business Risk Management at N26, a leading European digital bank, shaping business risk strategies that drive organisational success. She's driven by the impact and tangible value her work creates, inspiring others to prioritise risk in their business journeys.