The cost of regulatory compliance is becoming an increasingly significant challenge for micro-, small- and medium-sized financial service providers (MSM-FSPs), particularly those operating in emerging markets. As regulatory frameworks evolve in response to rapid technological innovation, many providers face growing complexity linked to licensing requirements, reporting obligations, supervisory expectations, and differing approaches across jurisdictions. For MSM-FSPs operating across multiple markets, fragmented and sometimes inconsistent regulatory requirements can increase operational costs, duplicate compliance efforts, and slow expansion into new markets.

These dynamics can create disproportionate burdens for MSM-FSPs, affecting their ability to compete, innovate, and scale sustainably. Elevated compliance costs may also contribute to reduced market competition, higher costs for consumers, and constraints on the expansion of inclusive financial services.

To support practical dialogue and industry-informed recommendations on these issues, the Alliance of Digital Finance and Fintech Associations (AllianceDFA) and the Association of Governance Risk & Compliance (AGRC) are launching a Dialogue-to-Action Series on the Cost of Compliance for MSM-FSPs. The project will combine three components: a series of expert roundtable discussions, a quantitative survey of AllianceDFA and AGRC members, and the development of a public White Paper outlining key findings and recommendations.

The Dialogue-to-Action Series will convene industry leaders, compliance experts, fintech operators, RegTech specialists, and ecosystem stakeholders from across emerging markets to participate in three virtual roundtables. The discussions will explore the common challenges and impacts of regulatory compliance costs, identify practical approaches and recommendations to reduce the cost and complexity of regulatory compliance, and examine how compliance costs affect market competition, innovation, scalability, and consumer costs.

Alongside the roundtables, AllianceDFA and AGRC will conduct a quantitative survey of their members to gather broader industry perspectives and evidence on compliance costs, operational impacts, and emerging priorities. Insights from both the discussions and survey findings will inform the White Paper, which will be released publicly in September 2026. More details about the project can be found in the Terms of Reference. 

Join the discussion

Applications are now open for participants interested in contributing to the Dialogue-to-Action Series. 

We welcome applications from organisations and experts committed to supporting practical, proportionate, and inclusive approaches to regulatory compliance for MSM-FSPs. This would include: senior staff representing micro, small and medium-sized financial service providers* (e.g. Heads of Compliance, Heads of Digital, CEO), RegTech specialists, regulatory and compliance experts, industry associations and other relevant ecosystem representatives. 

Participation will be limited to 15 participants to support focused and interactive discussions, with representation sought across Latin America and the Caribbean, Africa, Asia, and the Middle East. The three virtual roundtables are tentatively scheduled for 03 June, 17 June, and 08 July 2026 from 12:00–13:30 BST.  

Apply Here | AllianceDFA & AGRC Working Group: Costs of Compliance Application

*Micro, Small-Medium financial service providers are defined as: