This article discusses how fintech companies reduce costs and friction in financial transactions but do not eliminate risk. Instead, they transform it into forms they can better manage, emphasizing that understanding this transformation is key to success. Examples from companies like Square and Toast illustrate how they navigate risk through technology and targeted expertise.

The UK government is postponing the approval of Revolut's banking license due to concerns regarding the company's risk management practices. This delay raises questions about the fintech's ability to adequately address regulatory expectations and could impact its growth strategy.