As the volume of regulation for payment service providers (PSPs) continues to increase, companies need to look for the smart way to maintain and improve compliance, all while keeping a lid on costs.
Although regulation in payments has rarely ever been light-touch, since the global financial crisis, compliance has become an increasingly serious risk for PSPs to manage. A 2020 report from Thomson Reuters found that keeping up with regulatory change was the greatest expected compliance challenge for financial services, followed by budget and resource allocation. And in the annual edition of the report, more than a third of compliance firms in 2017-2019 expected to increase the size of their team. For many firms, such knee-jerk reactions are the logical response to increasing regulatory pressures.
Even the smoothest regtech solution is likely to struggle if the PSP is working on outdated regulations. The solution is to seek out smarter, technology-driven approaches to capturing regulatory intelligence.
For many PSPs, the problem is having to spin too many plates at once, ensuring smooth onboarding of customers, making sure they are not facilitating criminal activity and all while the rules are constantly changing. That last factor can be the most concerning, as even the smoothest regtech solution is likely to struggle if the PSP is working on outdated regulations. The solution is to seek out smarter, technology-driven approaches to help manage current and future expected compliance requirements.
The key is finding a solution that can take on the heavy lifting when it comes to sifting through hundreds of immaterial regulatory documents, leaving compliance professionals with the developments that matter most to them. VIXIO’s Horizon Scanning tool offers this in one, centralised place, providing that peace of mind and a strong foundation to work on.
With such a solution in place, PSPs are able to increase both their regulatory oversight at lower cost, and make accessibility in-house, giving them that extra level of confidence and control.
Horizon Scanning also publishes updates with summaries and standardised, key information in clear English, making the job of compliance professionals managing non-English jurisdictions much easier to manage. With such a solution in place, PSPs are able to increase both their regulatory oversight at lower cost, and make accessibility in-house, giving them that extra level of confidence and control.
Horizon Scanning is also a great complement to both front- and back-end regtech solutions for payments compliance, whether that be implementing a smooth customer onboarding with automated KYC checks, or ongoing monitoring or GDPR-compliant data storage.
Combined with our other regulatory data solutions that offer deeper insight into topics such as AML or multiple jurisdictions, Horizon Scanning allows PSPs to increase regulatory reliability, lower costs and enter new markets without feeling the burden of added compliance upon them.