Compliance and integrity in the financial sector: PSP’s turn
An estimated 16 billion Euro is laundered every year in the Netherlands, according to calculations made by researchers at Utrecht University a few years ago. The pressure on financial institutions to counter this has increased sharply in recent years. In particular, banks’ integrity policies have been under the spotlight and have regularly made the news. Because these institutions are increasingly acting on their social responsibility and setting up large new departments to the end, or perhaps because their approach in past has fallen short. Take for example the mega-settlement of 775 million Euro ING made with the Public Prosecution Service in 2018, or the large-scale restitutive operations that are underway at several banks.
The role of Payment Service Providers (PSPs), a fast-growing sector in which Dutch companies are working hard to make their mark, has gathered less attention. PSP Mollie recently became the first Dutch fintech ‘unicorn’ since Adyen, with a value of more than 1 billion Euro thanks to a new round of investment. According to financial insiders, PSPs symbolize the future of payment systems, and are implementing innovations to make the methods we use to pay better, safer and faster. But it would be foolish to simply assume that these companies are at the forefront in terms of compliance and integrity. This does not mean they’re not willing or able, but it might be a matter of setting priorities.
Why invest in compliance and integrity?
If PSPs can learn something from banks, it’s that it is never too early to have your affairs in order. The world of banking and payment may be changing at a lightning pace – partly at the hands of PSPs – but the laws and regulations are too, with increasing complexity as a result. It goes without saying that being ahead of the game is better than trying to play catch up. And it’s more than a matter of just complying with the rules. A solid KYC strategy does not depend solely on gaining and retaining a license to operate, but also on striving to achieve the highest possible standards. This is good for the competitive position of your organization, the financial system as a whole and society as a result.
The advantage PSPs have over banks is that they tend to be more agile organizations with an intrinsically strong culture of innovation. This means that, theoretically, they have all the tools they need to be leaders in terms of compliance and integrity. All the more reason for PSPs to make compliance and integrity one of the organization’s top priorities. This requires not only innovative systems, but most importantly good people. And good people are in short supply. PSPs are competing not only with each other, but also with – often much larger – banks and insurers.
Which approach best suits your organization?
In this fierce battle for scarce talent it’s important to adopt the approach that best suits your organization and the challenges of compliance. To help PSPs find their way, Interim Valley is launching a series of expert blogs, of which this is the first. As a recruitment agency, Interim Valley supports organizations in the financial sector to fill roles in Compliance, Data Science & BI, Trade Finance and Lending. In Compliance, we work together with PSPs, banks and insurers, recruiting experts for short as well as long term assignments.
In the next few weeks we will publish expert blogs about attracting talent when it’s in short supply, the importance of a good onboarding process and how to put together your ideal compliance team.
Follow us to be the first to read these blogs:
Other PSP blogs
PSP’s and compliance: putting together your ideal team
Want to know more about attracting the best KYC Experts for your organization right now?
Contact Christian de Vos at c.devos@interimvalley.com / 020 2444 921 or Mark Baerveldt at m.baerveldt@interimvalley.com / 020 2 444 923.