Key Regulatory and Industry Initiatives (KRIIs)
The current regulatory landscape for banks and other payment services providers (PSPs) is complex as they not only need to comply with existing regulations, but also adhere to new regulatory initiatives— some of which are affecting established operating and business models. Further, regulations differ greatly—some are very detailed and prescriptive while others are transformational and subject to multiple interpretations. Global banks face an additional compliance challenge as the regulatory approach varies to a great extent across jurisdictions, increasing the complexity of compliance and resulting in the need for a holistic and collaborative approach. Banks realize the importance of developing a holistic compliance vision and many have already taken initial steps to making it a reality, but have not made much progress in the past two years, as execution remains a challenge for many. To avoid lagging behind in complying with regulations, banks should find ways to accelerate their efforts in developing a proactive and collaborative compliance mindset.