Payment services firms – navigating operational and regulatory challenges amidst an age of uncertainty
The payment services landscape has evolved significantly over the last few years, with consumers and businesses increasingly using payment institutions and electronic money firms to undertake activities traditionally undertaken by banks. This has significantly picked up with the rising market and economic uncertainty brought about by Brexit and the COVID-19 pandemic. There is now even more focus on payment institutions and electronic money firms to mitigate harm to customers and increase operational resilience.
In this paper, we share our viewpoint on the key areas payment firms should be focussing on, including:
- The FCA's July 2020 Dear CEO Letter and the impact of prudential regulation on Payment Institution activities
- Capital management and the need for an optimal stress testing approach to satisfy minimum regulatory requirements
- Avoiding the detrimental impact of operational control failures on reputation, financial stability and solvency
- Addressing technology infrastructure vulnerabilities to cyber attacks and the increased monitoring of financial crime
- Planning for operating across the EU post-Brexit amidst rising uncertainty around EU-UK equivalence determination
Contact us
Mark Crowhurst
Director, Treasury Advisory in Financial Services, PwC United Kingdom
Tel: +44 (0)7738 313136
