Why building under regulation is an advantage for European founders
According to a recent article, the former CTO of N26 discovered that working under strict regulation can be a competitive edge, as it forces startups to build solid foundations and increase discipline.
A recent article on EU-Startups argues that building a business under regulation can be an advantage for European founders. It highlights the experience of the former Chief Technology Officer (CTO) of N26, who joined the company with no prior background in finance. His first task was not to build an app but to obtain a banking license and develop a core banking system from scratch.
The process took months, and the CTO admitted he had never before dealt with regulators. However, working in a regulated environment ultimately helped create a robust foundation that later became a competitive advantage.
The article emphasizes that while many European founders perceive regulation as a barrier, it can actually foster more sustainable and trustworthy business models. Compliance challenges push teams to be more creative and disciplined.
The full article is available on EU-Startups.
