Navigating product management in highly regulated industries like fintech, healthcare, and telecommunications presents a unique challenge, but it can also serve as a competitive advantage, according to a fintech product management expert, Mayowa Adebayo.
Mayowa Adebayo, an experienced product manager in the technology space, on Monday emphasised that regulatory frameworks designed to protect consumers and maintain financial stability often slow down product development. However, he noted that companies that effectively integrate compliance into their product lifecycle can differentiate themselves in the market.
“As a product manager in the fintech industry, I understand that this role comes with complex challenges, particularly in highly regulated sectors. In these industries, regulations are designed to protect consumers, but they can also slow down development cycles,” he said. “If dealing with Nigeria’s internet speed is challenging, try obtaining regulatory approval for a new fintech feature. It is comparable to waiting for the Power Holding Company of Nigeria (PHCN) to restore electricity.”
Mayowa highlighted key regulations that fintech product managers must navigate, including the General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), the Payment Card Industry Data Security Standard (PCI-DSS), and the Revised Payment Services Directive (PSD2). He spoke about GDPR as a body that mandates transparency in data collection, grants users control over their data, and requires consent before processing while PCI-DSS ensures that payment information is stored and transmitted securely by enforcing strict security practices like encryption and access controls.
He described PSD2 as an European regulation that aims to improve the security of online payments while CCPA offers similar protections to GDPR but pertains to California residents. Mayowa also stressed the importance of complying with local regulations, such as the Central Bank of Nigeria (CBN) guidelines and Know Your Customer (KYC) requirements.
“These regulations ensure the financial system’s safety, protect consumers, and prevent fraud. However, the challenge lies in keeping up with constant regulatory changes. What was acceptable last year may not be sufficient this year,” he said. “For instance, as digital currencies and open banking emerge, regulations are being updated to adapt, which creates additional hurdles for product managers.”
Mayowa further explained that compliance in fintech extends beyond legal requirements, as failing to adhere to regulations can lead to heavy fines, reputational damage, or even the shutdown of a business. However, he noted that excessive caution could also stifle innovation and delay product launches.
“The goal is to ship quickly and iterate, but moving too fast can lead to serious consequences such as lawsuits, penalties, or service shutdowns,” he said. “In a standard tech company, your stakeholders may include marketing, engineering, and sales. However, in a regulated environment, you must also engage with compliance, legal, risk management, and external auditors.”
According to Mayowa, product managers must foster strong cross-functional collaboration with legal and compliance teams to prevent regulatory roadblocks. He recommended involving compliance experts from the early stages of product development rather than waiting until the final stages.
“Consider a scenario where you’ve developed a game-changing payment feature, but compliance identifies a new issue every time you try to launch it. Before you know it, months have passed while competitors are releasing similar features much faster,” he said. “The solution is to involve compliance from day one rather than scrambling at the last minute. Establishing an internal pre-approval process where compliance signs off on smaller iterations is much more effective.”
He also recounted a situation where regulatory changes forced a fintech company to require users to upload multiple documents, verify their BVN, and wait for manual approvals before signing up. This led to high abandonment rates, prompting Mayowa and his team to simplify the KYC process by integrating government databases for automatic verification.
“Implementing tiered onboarding, where users can start with minimal information and gradually upgrade their accounts, was another effective strategy,” he said. “If faced with similar challenges today, I would leverage AI-driven tools such as automated document verification and risk assessment systems to streamline compliance processes.”
Mayowa stressed that regulatory compliance should not be treated as an afterthought but should be embedded into product development from the outset. He advised fintech companies to conduct regulatory feasibility assessments at the ideation stage and incorporate compliance into their Agile workflows.
“In an agile environment, ensure compliance is built into every iteration, not just at the end,” he said. “Establish iterative feedback loops with legal and compliance teams to catch potential issues before they become major roadblocks.”
He urged product managers to build strong relationships with compliance teams, educate them about Agile development, and integrate security and privacy measures into product design from day one.
According to him, product managers must think of compliance as a non-negotiable requirement akin to scalability or user experience. They have to make compliance part of your DNA by kicking off new feature discussions with a compliance checklist, embedding regulatory experts in product or sprint planning, and automating compliance checks within their CI/CD pipeline.
“Regulations don’t have to be speed bumps or roadblocks; they can serve as a competitive advantage,” he said. “The best product managers don’t simply react to compliance requirements; they anticipate them and use them strategically. It’s similar to navigating traffic in Lagos—if you know the shortcuts and plan ahead, you can still reach your destination on time.”
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