Join us for our third and final vlog on payments modernisation, where we discuss compliance and regulation. Missed the other vlogs? Our experts previously explored the role of people and dealing with technology change in payments modernisation. Watch them on-demand now.
According to our recently published Payments Modernisation report, we know that 57% of banks and building societies consider regulatory change to be a driving force for payments modernisation. They point to the need to maintain compliance with the current regulatory rules and various schemes. They also highlight the importance of 'horizon scanning' - this is establishing a forward looking view to anticipate and plan for future regulatory changes. These two considerations are paramount in ensuring a clear roadmap for payments modernisation.
The payments industry is undergoing significant and rapid transformation, and a key driver of this in recent years has been regulatory changes and developments. The last few months illustrate the pace of change that payments regulation is subject to. Recent activity includes the publication of HM Treasury's Future of Payments Review in November 2023. There is also now a greater focus on the customer and a move towards ‘principle-based regulation’ to reflect the size, nature and risk profile posed by different types of payment firms. The focus on the customer is reflected in the introduction of Consumer Duty and other initiatives including the progress being made on addressing APP scams and the recommendations made in the Future of Payments Review to further unlock the benefits of Open Banking.
In Alan's vlog, he highlights the importance of horizon scanning of regulatory initiatives both in the UK and at a global level – this will help firms to position themselves to take advantage of regulatory mandated change, and potentially use this as a lever for commercial benefit and growth, as opposed to simply meeting the benchmark for compliance.
Here at KPMG, we can offer a wide range of solutions to support banks and building societies on their payments journey - from initial scoping through to the delivery and realisation of change. If you would like to discuss what it means for your organisation, please get in touch.
