With regulations changing in payments, some financial institutions seem to be reacting to fear when dealing with their TPPPs and originators, rather than enhancing their boarding and compliance processes. With just a few adjustments, companies can keep variety in their portfolio, while still adding revenue in a fast, efficient manner.
The struggle with compliance needs was recently highlighted when Citigroup disclosed that the finance industry could spend as much as $10 billion annually in order to combat money laundering. This, along with the fact that compliance issues in 2013 caused M&T Bank to lose close to 18% in net income, has led to many questions. The payments world is left wondering: “why is so much spent on reactionary instead of precautionary measures?”