It’s 2024: AI is detecting cancer years in advance, and machines are composing film scores. Yet, bank customers are still required to visit physical branches and sign documents by hand to prove their identity.
These in-person liveness checks are excruciatingly time-consuming, especially when onboarding already takes close to 100 days for the average SME. Meanwhile, technology is available to streamline this process using selfies and passport scans, and the UK government recognizes it as a credible method for KYC. So, why haven’t banks adopted it?
Finance is a highly regulated industry, and even the smallest compliance error can be costly and destructive. In the past, HSBC, Deutsche, and JP Morgan were fined billions of dollars for compliance issues. Banks are on their guard. That’s why the average bank spends $48 million a year on compliance, with some even spending upwards of $500 million.
This makes it challenging for them to adopt new technologies, as they must carefully navigate a complex web of compliance requirements, regulatory guidelines, and internal policies and procedures, triple-checking every detail before moving forward.
The bigger you are, the more expensive and complicated change becomes, especially for financial institutions. And why bother? Suppose your current systems work well for most clients. In that case, the risk of disrupting something that functions smoothly can upset everyone from investors to markets and internal staff.
However, a small percentage of businesses struggle within this system.
In today’s global economy, many companies are started and run by non-resident owners managing complex international supply chains. We specialize in serving this niche because we've lived through these challenges ourselves.
When I say 'we,' I’m referring to my father and I. Before founding WeavePay, we built and scaled global businesses—both independently and together. My background in software-driven ventures, combined with my father’s expertise in finance and regulated industries, gives us a unique skill set. This positions us well to provide effective solutions because we understand the complexities from personal experience.
One of our major projects before WeavePay was a US-based fashion tech company with a globally dispersed team and target market, including staff members in Germany, Switzerland, and the UK. To operate efficiently, we had to open separate bank accounts in each country.
From the start, we encountered challenges. For example, opening a bank account in the UK was extremely difficult because we are US citizens. UK banks were cautious about the additional regulatory scrutiny involved, such as FATCA filings and nonstandard auditing procedures.
The fees piled up and burdened our business. WeavePay was born out of that frustration with traditional banking.
Banks are often reluctant to onboard these businesses for legitimate reasons: the potential revenue doesn’t justify the significant risk involved, even when all the correct documents are provided and every requirement is met.
Research by the International Chambers of Commerce (ICC) found that banks spend an extra £60,000 to work with an SME involved in global trade. For every transaction, AML analysts review around 30 documents, which adds to the overall costs.
It’s expensive because traditional banks cater to mass market needs; they can’t zero-in their focus on one specific pain point, which, in our case, are global SMEs. We’ve built our entire compliance and financial architecture to fulfill the needs of this niche.
We're also compliance-led, prioritizing safety over sales. From the first client we onboarded, our aim has been to minimize risk to ensure long-term sustainability by knowing our clients well so that we can provide great service and understand potential dangers. Staying true to this approach allows us to grow steadily, maintain control, and hopefully keep the business around for the next generation.
As a family-run enterprise, we've been fortunate to achieve significant scale, growing to over 35 team members and managing £250 million annually in client money turnover. Our long-term commitment extends to those we bring into our team—many of whom are original members who've been with us since day one.
In as much as we are a young fintech, we adopt the philosophy of larger banks—prioritizing caution, sustainability, and selectivity. We choose our clients as carefully as they choose us, building strong and lasting partnerships.
Some might compare HSBC to the British Airways of banking, serving a broad audience with efficiency and scale. While that approach works for them, we take a different path. We see ourselves as the G650—focused, tailored, and designed for those who need specialized solutions. Our goal isn’t to be everything for everyone but to provide exceptional service to those who value what we offer.
.svg)
Subscribe for special offers and news
