U.S. Payments Industry: The Players, Trends, and Compliance Issues Faced
The U.S. payments industry is struggling with an identity crisis. Regulatory authorities are demanding that the payments industry tighten their reins on the adherence to regulations and compliance mandates; technology is enabling payments providers, banks, and networks to venture further into new frontiers; practitioners are worried about security; and infrastructures are getting old and in need of repair or replacement. The task of replacing these systems is so daunting; no wonder no one wants to launch a project to overhaul the enterprise payments network within the business or within the banks.
The yearly payment volumes - B2B only - of processors such as CHIPS, Fedwire, SWIFT, and ACH are growing steadily, while checks are declining at a small single-digit rate.
Banks are spending significant dollars to upgrade existing solutions to support new SaaS and cloud-based integration interfaces to lower the cost associated with linking into corporate enterprise systems (both front office and back-office). Banks are also adding resources to staff to improve integration to the clients made with the goal of getting a leg up on the competition.
Businesses of all sizes are trying to send payments in the most cost-effective way and not necessarily through the bank- established channels. Corporate financial professionals want a conversion from paper to electronic payments, but only if they can get the payment information with the money transfer.
Why should you attend?
The role of the compliance officer is changing because banks and corporations are struggling to serve many masters; some with similar goals and others with contradictory ones. Regulators, corporate clients, Boards of Directors, and shareholders are pulling them in their own directions.
Fraud in some payment types are declining while others are picking up that slack. ACH, CHIPS, and Fedwire payments are taking the place of B2B checks but there exists compliance and fraud issues in all of them.
Areas Covered in the Session:
Background of payment types, their uses, and differences
Volumes by dollars and transaction trends
How payments are viewed by different parties
B2B payments and fraud issues
Electronic payments and their issues
Consumer payment fraud issues
People, Processes, and Programs
Role of the compliance officer
Day 1 Schedule:
Lecture 1: Overview and Grounding
Overview of payment types - both B2B and consumer payments
Payment types that are declining and those that are growing:
ACH, CHIPS, Fedwire, electronic payments, virtual currency, etc.
Lecture 2: Differing Views/Perspectives of Payments
What is the customer΄s view of payments?
What are their needs?
View of compliance/rules/regulations
What is the financial institution΄s view?
How do they stay compliant?
Rules and regulations the customer does not see
Balancing customer service and compliance
U.S. Bank, International bank, Non-bank, Virtual bank
Lecture 3: B2B Payments and the Compliance Issues They Face
B2B check fraud and controls to put in place
Key aspects of the role and key players involved B2B payments
Regulatory agencies and their roles
Role of the Compliance Officer
Movement from paper to electronic and the issues that arise
Non-bank payment channels
Plans and polices to combat payment theft and related fraud
Red flags to watch for and prevention methods
Best practices for GRC
Lecture 4: Case Study and problem solving in small groups
Day 2 Schedule:
Lecture 1: Faster Payments
The U.K. Payment System before the FPS
United Kingdom Faster Payments Service (FPS) now
FPS Costs and who bore them
Benefits of such a system
Implications for the United States
Value of the benefits versus costs of adopting the service?
Impact on existing systems
Future for existing systems
Lecture 2: Payment Risk Management and Fraud Control
Payment System Risk Policy
FFIEC Action Summary for Retail Payments
Areas of Risk and Risk Assessment Activities
Cross Channel Risk Mitigation
People, Processes, and Products
Is there an optimal organizational structure / for managing payments strategy?
Are there best practices that apply to my institution?
What are the hurdles in establishing an organization focused on the payments business?
Are there common pitfalls?
Lecture 3: Consumer E-Payments - Complying with Auditor΄s Standards: Part I - Identifying and Understanding the Risks
Assessing the risk level in consumer payments
Establishing the scope and objectives
Assessing the oversight quality
Risk management and support for bank card issuance
Quality of policies, procedures, and limits
Risk assessment and support for:
o EFT/POS processing
o ACH processing
o Emerging technologies
Lecture 4: Case Study and/or roundtable discussion of what we have learned
President, Graber Associates LLC
Ray Graber has a deep and thorough understanding of banking, technology, and finance. His business experience includes banking technology research at TowerGroup; best practices internet security, policies, and procedures at FleetBoston Financial; wire transfer operations and product launches at Citibank and BankBoston; and treasury operations for a $325 million public company.
Mr. Graber was an adjunct professor at the Carroll School of Management at Boston College where he taught three graduate-level courses: E-Banking, the MBA Leadership Workshop, and Corporate Finance. Previously, he taught the Financial Management of Commercial Banks in the Boston College Carroll School of Management Masters of Finance Program and Working Capital Management and Cash Management at the Bentley College Graduate Business Program.
Ray holds a Bachelor of Arts degree in Mathematics and an MBA in Finance and MIS, both from Boston College.