Payments providers are being increasingly challenged to balance the demands of regulator and customer. The speed and breadth of change is challenging both existing players and new entrants to continually adapt to remain competitive. Banks and other payment service providers are faced with a myriad of operational, functional, regulatory and information security risks, while also trying to lower overall cost and improve client experience.
What does this mean for the payments industry?
With a complex global business environment and multiple drivers for change, firms of all types, from established international institutions to start-up alternative providers need to address the challenges presented from all dimensions. All participants need to balance the needs of the customer with the demands of the regulator, and define for themselves a role in the new ecosystem, recognizing that the ability to collaborate will be as important at the ability to compete.
Ultimately, the most successful firms will be those who deliver payment products and services that provide excellent, compliant customer service, without compromising the fundamentals: access, convenience, timeliness, stability, efficiency, reliability, security and transparency.
Banks, payment providers, large corporations and other FS organizations face interrelated challenges when responding to the evolving payments business and regulatory landscape. These challenges impact business models, enabling IT and operations, and approaches to risk and compliance.
If you would like to discuss Payments with our ET advisors in more detail, please don’t hesitate to get in touch with me, or your usual EY contact.