The Finance Magnates London Summit 2023 featured an engaging
panel discussion titled “Innovation vs Regulation: Who Drives the Future
of the Payments Landscape?” Will Marwick, the CEO of IFX Payments,
moderated the session and provided insightful perspectives. Rosie McConnell, the Product Director at IFX Payments, contributed as a speaker. The conversation
explored the intricate relationship between innovation and regulation,
dissecting their influence on the trajectory of the payments industry.
McConnell unequivocally championed innovation as the driving
force behind the future of payments. She emphasized the crucial role of
innovation in meeting customer expectations for faster, secure, and
cost-effective payment methods. She highlighted the competitive spirit
intrinsic to innovation as a significant factor to shaping the industry’s
trajectory.
Will Marwick, CEO of IFX Payments
The discussion then delved into the delicate balance between
innovation and regulation,
acknowledging the challenges of navigating diverse regulatory landscapes while
fostering innovation. McConnell shed light on the costs associated with meeting
local regulations and the need for a delicate equilibrium to ensure compliance
without stifling innovation. Marwick, taking the lead on the regulatory
perspective, stressed the importance of understanding and embracing regulations
while fostering innovation within their confines.
Rosie McConnell, Product Director at IFX Payments
The discussion then delved into the delicate balance between
innovation and regulation,
acknowledging the challenges of navigating diverse regulatory landscapes while
fostering innovation. McConnell shed light on the costs associated with meeting
local regulations and the need for a delicate equilibrium to ensure compliance
without stifling innovation. Marwick, taking the lead on the regulatory
perspective, stressed the importance of understanding and embracing regulations
while fostering innovation within their confines.
Marwick said: “The key question becomes, ‘Who do we
want innovating, and how can regulation play a significant role in steering the
right players towards developing new, exciting payment rails and methodologies
that uphold these principles?’ It’s about navigating the balance between
innovation and compliance, ensuring that the regulatory framework fosters the
creation of innovative products while adhering to the evolving landscape of
rules and responsibilities.”
Practical Advice for Businesses and Global Perspectives
Marwick offered valuable guidance on scaling businesses
through the intricate regulatory environment. His advice emphasized the
acknowledgment of payments
spanning diverse jurisdictions, aligning product development with fundamental
regulatory principles, and substantial investment in a proficient compliance
and legal team. Understanding local intricacies and leveraging exceptions
within jurisdictions were identified as crucial for successful market entry.
McConnell added insights into IFX Payments’ approach, using
a modular product design to navigate local jurisdiction modifications, ensuring
cost-effective and swift market entry while tailoring products to meet specific
local needs.
The conversation expanded to global differences in the
relationship between innovation and regulation. Marwick highlighted the shift
towards real-time payments and the active role of regulators in shaping the
payments space, as exemplified by the mandate for separate instant settlements
within the Eurozone.
McConnell brought attention to varying regulatory frameworks
globally, citing examples from African and Asian markets. She stated: “Shifting away from traditional methods, particularly in the UK with its robust
regulatory framework, has been crucial. However, looking at African markets,
there’s a notable leapfrogging effect, witnessing remarkable technological
advancements.”
“They bypass legacy systems and traditional payment rails,
directly embracing new technologies like
mobile, resulting in a diverse range of payment methods. This shift is truly
fantastic. Moving beyond Africa
to Asian markets, we observe a pioneering stance in areas such as digital wallets
– an excellent payment method that eliminates third parties and intermediaries,
establishing a closed loop between consumers and merchants. These diverse
consumer trends and varied regulatory frameworks across different markets stem
from unique lessons learned.”
Join us at Finance Magnates as CEO Will Marwick and Product Director Rosie McConnell will present a session on innovation vs regulation.
You can pre-book a meeting with one of our representatives at the event here: https://t.co/HoPXlD6x7Z #FMLS #FMLS23 #payments pic.twitter.com/FxGKa8rf3U
— IFX Payments (@ifxpayments) October 26, 2023
UK’s Regulatory Framework and Collaborative Approach
The discussion turned to the UK’s regulatory framework, with
McConnell expressing optimism about adopting lessons learned from diverse
global markets. Marwick suggested an “Apple approach” of implementing
regulations second but better, leveraging the opportunity presented by Brexit to strike a
balance between standards and flexibility.
Marwick emphasized the importance of regulatory certainty,
pointing out challenges faced by innovators when regulations are unclear or
contradictory. McConnell underscored the significance of open dialogue between
companies in the payment space and regulators, identifying the complexity of
regulations as a potential barrier to entry.
The dialogue further explored the collaborative approach
required between industry players and regulators in the financial and payments
industry. Marwick emphasized the necessity of a dialogue and practical feedback
loop between the industry and regulators, stressing that the burden of
compliance cannot solely rest on regulatory bodies like the Financial Conduct Authority.
The conversation also delved into the relationship between Electronic Money Institutions and traditional banks. Marwick highlighted the role of banks as
enforcers of regulations, emphasizing the importance of collaboration and
shared principles for compliance with regulations and risk management.
Transformative Impact of Open Banking, AI, and Blockchain
The dialogue explored the transformative impact of open
banking, AI, and
blockchain on the future of payments. Marwick expressed enthusiasm for AI,
highlighting its potential in addressing false positives in transaction
monitoring and customer KYC checks. McConnell advocated for AI in compliance,
particularly in fraud detection, acknowledging the rise in fraud statistics.
Marwick viewed blockchain as a revolutionary force,
discussing its unique attributes and potential applications in transaction
monitoring and screening processes. The discussion extended to central bank digital
currencies, with both participants agreeing on their significance
in driving innovation and better access to financial services.
In the final segment, the conversation touched on the
evolving landscape of payment methods and personalization. McConnell emphasized
the need to align with consumer expectations, pointing out the challenges faced
by traditional frameworks. Marwick agreed, emphasizing the importance of
integrating blockchain themes into existing payment rails to ensure speed,
security, and accessibility.
Marwick said: “I believe blockchain
applications bring a unique aspect to the table. They have the potential to
transform how organizations manage risk, providing customers with a sense of
security against cyber threats and addressing concerns about data ownership –
who actually holds their data.”
The dialogue concluded with a question from the
audience about the upcoming data protection digital information bill.
Marwick expressed hope for more rigorous regulations, especially regarding the
protection and processing of customer data. He emphasized the need for
proportionality in data
retention and anticipates that increased rigor should be accompanied by
improved access to data for enhancing systems.
The Finance Magnates London Summit 2023 featured an engaging
panel discussion titled “Innovation vs Regulation: Who Drives the Future
of the Payments Landscape?” Will Marwick, the CEO of IFX Payments,
moderated the session and provided insightful perspectives. Rosie McConnell, the Product Director at IFX Payments, contributed as a speaker. The conversation
explored the intricate relationship between innovation and regulation,
dissecting their influence on the trajectory of the payments industry.
McConnell unequivocally championed innovation as the driving
force behind the future of payments. She emphasized the crucial role of
innovation in meeting customer expectations for faster, secure, and
cost-effective payment methods. She highlighted the competitive spirit
intrinsic to innovation as a significant factor to shaping the industry’s
trajectory.
Will Marwick, CEO of IFX Payments
The discussion then delved into the delicate balance between
innovation and regulation,
acknowledging the challenges of navigating diverse regulatory landscapes while
fostering innovation. McConnell shed light on the costs associated with meeting
local regulations and the need for a delicate equilibrium to ensure compliance
without stifling innovation. Marwick, taking the lead on the regulatory
perspective, stressed the importance of understanding and embracing regulations
while fostering innovation within their confines.
Rosie McConnell, Product Director at IFX Payments
The discussion then delved into the delicate balance between
innovation and regulation,
acknowledging the challenges of navigating diverse regulatory landscapes while
fostering innovation. McConnell shed light on the costs associated with meeting
local regulations and the need for a delicate equilibrium to ensure compliance
without stifling innovation. Marwick, taking the lead on the regulatory
perspective, stressed the importance of understanding and embracing regulations
while fostering innovation within their confines.
Marwick said: “The key question becomes, ‘Who do we
want innovating, and how can regulation play a significant role in steering the
right players towards developing new, exciting payment rails and methodologies
that uphold these principles?’ It’s about navigating the balance between
innovation and compliance, ensuring that the regulatory framework fosters the
creation of innovative products while adhering to the evolving landscape of
rules and responsibilities.”
Practical Advice for Businesses and Global Perspectives
Marwick offered valuable guidance on scaling businesses
through the intricate regulatory environment. His advice emphasized the
acknowledgment of payments
spanning diverse jurisdictions, aligning product development with fundamental
regulatory principles, and substantial investment in a proficient compliance
and legal team. Understanding local intricacies and leveraging exceptions
within jurisdictions were identified as crucial for successful market entry.
McConnell added insights into IFX Payments’ approach, using
a modular product design to navigate local jurisdiction modifications, ensuring
cost-effective and swift market entry while tailoring products to meet specific
local needs.
The conversation expanded to global differences in the
relationship between innovation and regulation. Marwick highlighted the shift
towards real-time payments and the active role of regulators in shaping the
payments space, as exemplified by the mandate for separate instant settlements
within the Eurozone.
McConnell brought attention to varying regulatory frameworks
globally, citing examples from African and Asian markets. She stated: “Shifting away from traditional methods, particularly in the UK with its robust
regulatory framework, has been crucial. However, looking at African markets,
there’s a notable leapfrogging effect, witnessing remarkable technological
advancements.”
“They bypass legacy systems and traditional payment rails,
directly embracing new technologies like
mobile, resulting in a diverse range of payment methods. This shift is truly
fantastic. Moving beyond Africa
to Asian markets, we observe a pioneering stance in areas such as digital wallets
– an excellent payment method that eliminates third parties and intermediaries,
establishing a closed loop between consumers and merchants. These diverse
consumer trends and varied regulatory frameworks across different markets stem
from unique lessons learned.”
Join us at Finance Magnates as CEO Will Marwick and Product Director Rosie McConnell will present a session on innovation vs regulation.
You can pre-book a meeting with one of our representatives at the event here: https://t.co/HoPXlD6x7Z #FMLS #FMLS23 #payments pic.twitter.com/FxGKa8rf3U
— IFX Payments (@ifxpayments) October 26, 2023
UK’s Regulatory Framework and Collaborative Approach
The discussion turned to the UK’s regulatory framework, with
McConnell expressing optimism about adopting lessons learned from diverse
global markets. Marwick suggested an “Apple approach” of implementing
regulations second but better, leveraging the opportunity presented by Brexit to strike a
balance between standards and flexibility.
Marwick emphasized the importance of regulatory certainty,
pointing out challenges faced by innovators when regulations are unclear or
contradictory. McConnell underscored the significance of open dialogue between
companies in the payment space and regulators, identifying the complexity of
regulations as a potential barrier to entry.
The dialogue further explored the collaborative approach
required between industry players and regulators in the financial and payments
industry. Marwick emphasized the necessity of a dialogue and practical feedback
loop between the industry and regulators, stressing that the burden of
compliance cannot solely rest on regulatory bodies like the Financial Conduct Authority.
The conversation also delved into the relationship between Electronic Money Institutions and traditional banks. Marwick highlighted the role of banks as
enforcers of regulations, emphasizing the importance of collaboration and
shared principles for compliance with regulations and risk management.
Transformative Impact of Open Banking, AI, and Blockchain
The dialogue explored the transformative impact of open
banking, AI, and
blockchain on the future of payments. Marwick expressed enthusiasm for AI,
highlighting its potential in addressing false positives in transaction
monitoring and customer KYC checks. McConnell advocated for AI in compliance,
particularly in fraud detection, acknowledging the rise in fraud statistics.
Marwick viewed blockchain as a revolutionary force,
discussing its unique attributes and potential applications in transaction
monitoring and screening processes. The discussion extended to central bank digital
currencies, with both participants agreeing on their significance
in driving innovation and better access to financial services.
In the final segment, the conversation touched on the
evolving landscape of payment methods and personalization. McConnell emphasized
the need to align with consumer expectations, pointing out the challenges faced
by traditional frameworks. Marwick agreed, emphasizing the importance of
integrating blockchain themes into existing payment rails to ensure speed,
security, and accessibility.
Marwick said: “I believe blockchain
applications bring a unique aspect to the table. They have the potential to
transform how organizations manage risk, providing customers with a sense of
security against cyber threats and addressing concerns about data ownership –
who actually holds their data.”
The dialogue concluded with a question from the
audience about the upcoming data protection digital information bill.
Marwick expressed hope for more rigorous regulations, especially regarding the
protection and processing of customer data. He emphasized the need for
proportionality in data
retention and anticipates that increased rigor should be accompanied by
improved access to data for enhancing systems.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- Source: https://www.financemagnates.com//fintech/bypassing-legacy-systems-clients-embrace-technologies-for-payment-experts-insight/
