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News and resources on regulation, compliance, legal and governance issues for banks and fintechs.

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Will smart divergence set the UK apart post Brexit?

Will smart divergence set the UK apart post Brexit?

During a panel session for UK Fintech Week 2021, moderator Kristy Duncan, founder and CEO of Women in Payments noted that while the UK and EU benefits from a progressive regulatory regime which favours innovation and competition, fintechs are hindered by regulatory challenges including lack of enforcement and passporting headaches.

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FCA appoint ESG director and CIO

FCA appoint ESG director and CIO

Roadmap to the new relationship model

Roadmap to the new relationship model

Shearman & Sterling: 'Remove the straitjacket of statutory rules' for UK fintech

Shearman & Sterling: 'Remove the straitjacket of statutory rules' for UK fintech

FCA to introduce 'regulatory nursery' for newly-licenced firms

FCA to introduce 'regulatory nursery' for newly-licenced firms

Rishi Sunak announces UK Treasury and BofE fintech taskforce to explore CBDC

Rishi Sunak announces UK Treasury and BofE fintech taskforce to explore CBDC

EBAday 2021: Will 2021 see proactive regulators eschew their reactive reputation?

EBAday 2021: Will 2021 see proactive regulators eschew their reactive reputation?

FNZ loses appeal over CMA decision to block merger with GBST

FNZ loses appeal over CMA decision to block merger with GBST

How Curve got back on track after Wirecard fallout

How Curve got back on track after Wirecard fallout

Interoperability crucial for DLT in post-trade processes - ECB

Interoperability crucial for DLT in post-trade processes - ECB

Rabobank and ABN Amro target privacy-friendly data analysis

Rabobank and ABN Amro target privacy-friendly data analysis

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[On-Demand Webinar] Spotlight on UX: Why Issuers are prioritising Digital Experience[On-Demand Webinar] Spotlight on UX: Why Issuers are prioritising Digital Experience
Regulation & Compliance blogs
Information Security  

5 Best Risk Controls To Prevent Third-Party Data Breaches

Breana Patel

Breana Patel - Bonova Advisory | Risk &Regulatory Advisory - New York

 

Regulatory and Compliance Considerations of Remote Working

Angela Good

Angela Good - Waymark Tech - London

RegTech  

The Future of Women in RegTech

Jane Jee

Jane Jee - Kompli-Global Limited - London

Fintech  

The four biggest challenges facing the payments industry right now

Jonathan Bell

Jonathan Bell - PXP Financial - London

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Latest TV
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A bright future for Open APIs

A bright future for Open APIs

Alfonso Navío, EMEA FSI Business Strategist, Red Hat, speaks on FinextraTV about what makes a successful Open API strategy, some of the common mistakes FIs are making in this space, and how APIs will be developed and used in the future.
Roadmap to the new relationship model

Roadmap to the new relationship model

Christopher Papathanassi, Global Solution Lead – Lending, Finastra speaks about Finastra's latest corporate banking research with a focus on lending. We learn about moving beyond the traditional relationship model and what banks need to do to transition successfully and deliver the most value to their corporate customers.
What Strong Customer Authentication really means for chargeback rates

What Strong Customer Authentication really means for chargeback rates

Monica Eaton-Cardone COO and Co-Founder of Chargebacks911 and Fi911, features on FinextraTV to guide viewers through the changes that Strong Customer Authentication will impose to chargeback rates – from its impact on reason codes and how chargebacks are being filed to chargeback liability shifts. She will highlight how Transaction Risk Analysis will impact this liability and the different ways it is implemented.
Openbank's plans to grow & provide better banking for the future

Openbank's plans to grow & provide better banking for the future

Ezequiel Szafir, CEO, Openbank, speaks on FinextraTV about his view on banking today and the role it plays in society, what innovation means to Openbank, and how technology has helped them differentiate.
The long read
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Paige McNamee

Is the Bank of England’s CBDC announcement overdue?

Paige McNamee - Finextra Research
Discussion
Intraday liquidity regulation: a decade of progress?
Pete McIntyre

Pete McIntyre

  Thanks for the comments.  Regulators certainly do care about intraday risk at your correspondent bank.  In fact in some cases it is the risk at nostros that is most significant.  Remember that Lehman’s intraday risk was on nostro accounts…Usually a direct participant has useful tools to understand and monitor their liquidity in the clearing system, but when you are indirect then you are at the mercy of how your agent bank decides to process your payment activity and how this liquidity usage fits alongside any credit limits they may provide. This means that your intraday liquidity monitoring and management systems/processes need to cover off both risk where you are direct and also indirect.  For nostro account monitoring we have had great success in building up views using SWIFT messaging - not necessarily GPI but rather the intraday settlement confirmations (e.g. MT9XX, MT5XX and their new MX equivalents).  The trick is to do this quickly enough i.e. get this data into your systems, process appropriately and run the analytics so that you get real-time insight.  With that insight comes control so you can react to events, move liquidity around and ultimately reduce the need to hold liquidity or run large overdrafts.  Not easy, but we at Planixs have done this for banks large and small.

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Intraday liquidity regulation: a decade of progress?
Ketharaman Swaminathan

Ketharaman Swaminathan

  Lehman Brothers was felled by a Black Swan event and collapsed despite regulation.  I also ponder over Acquirer Risk in payments business. Yes, a tiny percentage of Merchants may go bust 30-60 days after a credit card transaction but does that warrant all the measures taken to mitigate that risk e.g. Hesitation - refusal even - by banks to acquire micro and nano merchants. I sometimes wonder if there's too much regulation to address extremely rare events. OTOH, we keep hearing finserv should emulate tech, "fail fast", "move fast and break everything", "YOLO", and all that and govts are printing notes in the name of TARP, Pandemic Stimulus, etc., effectively kicking the very common inflation risk can down the road.  OTOH, finserv regulation appears to overthink too many rare things. Irony or am I missing something?

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Intraday liquidity regulation: a decade of progress?
Aparty Behera

Aparty Behera

  A genuine concern, While SWIFT introducing Universal Confirmation of payments and strict GPI compliances of payments to be made within 2 business days or tagging the statuses as red would put further pressure on maintaining liquidity at correspondent end.

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Intraday liquidity regulation: a decade of progress?
Jeremy Light

Jeremy Light

  I wonder how much regulators focus on intraday liquidity for cross-border payments? It is one thing to measure and manage intraday liquidity in settlement accounts at the central bank and intraday positions in closely regulated high value payments systems like CHAPS, Target, Fedwire, it is a completely different challenge managing liquidity in nostro accounts (which can run into 100s for some FIs) at correspondents banks abroad - end-of-day liquidity management is difficult enough, intraday is much more complex. I guess that regulators are less interested, as the liquidity in a nostro in a correspondent outside their jurisdiction is outside their control, while availability of funds in nostros in their jurisdiction to meet payment obligations made abroad is outside of their concern. SWIFT GPI makes a great play on enabling very fast cross-border payments - the messaging component has always been fast (compliance hits aside), but it is the liquidity component that is the greatest challenge. To enable GPI, funding liquidity in overseas nostros at end of day to release payments the following day needs to be replaced by funding liqudity in advance if GPI targets for near-real-time payments are to be met - pre-funding nostros the previous day, or intraday, requires accurate forecasting, including incoming payments to net, and requires continuous, accurate management. Liquidity has been fairly abundant over the past decade, and pre-funding nostros by over-funding has been an easy, if inefficient solution. However, if liquidity were to become tighter, settlement and credit risks in the global cross-border payments system will escalete rapidly. It will be interesting to see how this is addressed in the G20/FSB project to enhance cross-border payments.  

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UK watchdog accuses Mastercard and rivals of operating pre-paid card cartel

UK watchdog accuses Mastercard and rivals of operating pre-paid card cartel

Tide proposes Open Banking data fees to incentivise banks

Tide proposes Open Banking data fees to incentivise banks

FCA to define new rules about data ethics in evolution of Open Banking

FCA to define new rules about data ethics in evolution of Open Banking

MPs slam Action Fraud, FCA and tech giants over pension scams

MPs slam Action Fraud, FCA and tech giants over pension scams

The long read
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Chris Holmes

The Westminster Series: Digital must become the day to day

Chris Holmes - Peer - House of Lords
Regulation & Compliance Analysis
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How to embrace Banking-as-a-Service and sharpen bank toolkits
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How to embrace Banking-as-a-Service and sharpen bank toolkits

Register for our latest webinar with Capgemini on Thursday 17 June 2021 at 15:00 UK time as industry experts discuss how to embrace Banking-as-a-Service and sharpen bank toolkits.

Spotlight on UX: Why issuers are prioritising digital experience
/event information

Spotlight on UX: Why issuers are prioritising digital experience

2020 saw payments go contactless and e-commerce explode as the globe grappled with the reality of a pandemic.

NextGen Nordics Webinar - Changing Payments: P27, Europe and beyond
/event information

NextGen Nordics Webinar - Changing Payments: P27, Europe and beyond

Join us for this Finextra webinar to hear from payments experts discuss changing payments: P27, Europe and beyond.

Elsewhere...

  1. The Guardian

    Big tech finance companies are one step ahead of regulators

  2. Reuters

    BOJ sees scope to set common rules on CBDCs with major central banks

  3. The Straits Times

    Tencent loses $83b on HK bourse, wiping out value of fintech business, on fears of regulation

  4. The Guardian

    Fintech firms want to keep their golden shares. London may be forced to agree

  5. BBC

    Covid: Cash refusal 'creeping into UK economy'

The long read
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Stephen Elam

Crypto Regulation Series: An exploration of the UK's cryptoasset landscape

Stephen Elam - Partner - Cooke Young & Keidan