Building a lasting fintech company requires viewing compliance as infrastructure rather than a checkbox. Petr Sergeev, a founder with over a decade in the industry, states that many startups overlook this until problems arise.
The hidden cost of cutting corners
Most fintech failures stem from regulatory pressure, banking partner withdrawals, or liquidity crises that reveal weak compliance foundations. A 2025 study by Hare Strategy Group found that 73% of fintech startups fail within three years due to preventable compliance and integration issues.
Sergeev’s work in Norway, a market with a cashless economy and digitized banking, showed that advanced systems often favor established players. Startups face difficulties adapting to strict frameworks built for larger firms. This challenge led him to Estonia, where compliance operates as a collaborative environment rather than a barrier.
Estonia’s regulatory edge
Estonia’s fintech ecosystem extends beyond e-residency and digital bureaucracy. Its strength lies in how regulators interact with startups. Authorities evaluate applications based on practical use rather than rigid rules, avoiding automatic rejections.
This method has produced companies like Wise, Bolt, and Veriff, which built resilience by treating licenses as product boundaries.
People, not tech, make resilience
Estonia’s approach succeeds because it combines regulatory flexibility with human expertise. No compliance system operates independently, and no licensing strategy survives regulator scrutiny without skilled teams.
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Sergeev observed this firsthand: a KYC exception requires an analyst who understands both regulations and customer risk, not just a model. Banking partners gain confidence from compliance officers who provide real-time answers.
Such expertise isn’t added later. It’s hired, trained, and integrated into reporting structures from the start.
Compliance as a growth engine
By 2025, most fintech pitch decks feature AI tools, fraud detection, and automated underwriting. When everyone uses the same technology, differentiation fades.
A strong regulatory framework drives real growth. When compliance is built for audits, banking partners don’t withdraw support during crises. When regulatory maturity matches Estonia’s tested model, product boundaries expand instead of collapsing. This approach allows companies to scale without risking failure.
Sergeev now focuses on markets like the UAE, where progressive regulation aligns with global expansion. Founders who treat compliance and human capital as core infrastructure don’t just survive stress tests—they build institutions capable of long-term growth.
TenTrade recently appointed Wilfred Obasi as Africa head, signaling its expansion into regions with evolving regulatory settings.