Complying With AML Laws: Challenges For The Fintech Industry

"Silicon Valley is coming. There are hundreds of startups with a lot of brains and money working on various alternatives to traditional banking."

This warning came not from a pundit or Silicon Valley lobbyist, but from Jamie Dimon, the Chairman and Chief Executive Officer of JPMorgan Chase & Co. New technology in the financial industry is changing how people manage their finances. This merger of financial services with technology, referred to as "fintech," is a booming industry. In 2014 alone, technology-focused venture capital firms invested $12.2 billion in fintech startups, a threefold increase over the previous year. Startups are not the only companies racing to join the industry. Heavyweights in the financial services industry, such as JPMorgan Chase and Goldman Sachs, are also adopting fintech services such as peer-to-peer payments and same-day approval of small business loans.