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In the talk "Running a Fintech with Ruby," Aitor García Rey, founder and fractional CTO, shares insights into the complexities of operating a fintech company, particularly within the banking sector. Aitor emphasizes that conventional banking examples often oversimplify transactions, neglecting the intricate dynamics of real-life banking operations. He defines banking as a transnational distributed ecosystem characterized by strict regulations and diverse stakeholders, suggesting that true banking processes are far messier than they are typically portrayed. He outlines a series of key points pertaining to the transaction process:

- **KYB Process**: The journey begins with the Know Your Business (KYB) approach, which is critical in onboarding business clients. This thorough vetting requires detailed investigations into company structures, relationships, and financial flow.
- **Transaction Checks**: Once a client requests a transfer, the Payment Service Provider checks account balances and verifies against sanction lists and Politically Exposed Persons (PEPs) to mitigate risks.
- **ISO 20022 Standard**: Adopting the ISO 20022 protocol has streamlined communications and processing in a previously chaotic arena, enabling better global payment interactions.
- **Clearing and Settlement Mechanism (CSM)**: The CSM plays a pivotal role in netting transfers to minimize actual cash movement between banks, enhancing operational efficiency.
- **Real-Time Transfers**: Aitor highlights the transition to 24/7 operations and the rise of instant transfers as a significant evolution in fintech, while also introducing new risks involving fraud and error.
- **Operational Complexity**: AETU, Aitor's company, shifted from a salary advance model to a payment service provider, tackling the challenges of integration and compliance in transactions, revealing the importance of rigorously defining and maintaining business logic.
- **Modular Monolithic Design**: Aior’s team adopted a modular monolithic approach to maintain simplicity while managing complexity, allowing for independent components that can evolve without impacting the entire system.
- **Audit and Transparency**: Emphasizing compliance, Aitor noted the need for robust documentation and transparency in transaction operations, reflecting the industry's complexity and highly regulated environment.

Concluding his talk, Aitor stresses the importance of a cautious and verifiable approach in fintech, advocating for transparent practices over a high-risk model of rapidity without accountability. The key takeaway is the necessity for fintech companies to understand the intricate details of banking processes and to embed compliance and verification deeply into their operations for success.

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