Caren Robb

💥 New security controls have been introduced by the team over at Monzo Bank. This trio of new measures - known as Known Locations, Trusted Contact and Secret QR Codes - will aim to provide a much-needed layer of protection for customers when making large transfers or taking out savings.   The opt-in will require customers to select at least two of the three security controls (and will be in addition to the typical biometric of PIN authentication checks they already use).   ⚖ Getting the balance of friction and convenience in payments has its challenges. Sure, consumers want it to be easy, but the industry has a responsibility to prevent fraud and adding friction is a key part of that.   Not only are banks battling with friction and convenience, but the upcoming APP fraud requirements are adding even more pressure by requiring them to reimburse victims.   😢 It's not easy!   But compliance must be embedded in a firm's culture, just as firms are constantly seeking to evolve, innovate and protect their customers. (Drop me a note if you want to chat about how to make this work 👀 ).   ( ⬇ Link to the The Fintech Times article - https://lnkd.in/e4Kcwytx ) #fraud Thistle Initiatives

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Significant opportunity for FS / Fintech recruiters Welcome back from the summer holidays. Great news for any recruiters dealing with Fintech firms. A lot of EU based financial institutions are likely to have to set up a UK entity, with at the very least an FCA approved CFO and MLRO by the end of the year (2024) - if they don't already have one. IMPACTED: EU / International firms operating in the UK under the FCA Temporary Permissions Regime (that expires at the end of the year). After Brexit, the FCA agreed that EU regulated financial services firms could continue operating in the UK under their "Temporary Permissions Regime (TPR). This was designed to give EU based firms time to set up a UK entity and apply for authorisation from the FCA. The application for authorisation requires the firm to provide a lot of detail, including specifying the key officers (e.g. CFO and MLRO) who will be overseeing the firm if authorised and a business plan demonstrating that once authorised the firm will be financially stable and meet FCA capital requirements, etc. Normally the proposed CFO and MLRO would be heavily involved in preparing the application for authorisation and the business plan. The FCA promises to respond to applications within 3 months, but in reality, after any questions they may have, getting authorisation normally takes around 6 months. We are currently 4 months away from the year end deadline, after which any fintech which hasn't obtained authorisation would likely have to stop doing business with UK clients until their authorisation comes through. (It would clearly make their investors deeply unhappy if the company had to put UK business on hold for a few months and they lost clients as a result). It is likely that a number of International / EU based firms will urgently need to appoint a CFO and MLRO, get their application in and hope that the application is approved before the end of 2024. As recruiters, you could probably win a mandate to find a CFO and MLRO for impacted firms by checking with your VC and PE networks whether any EU based FS / Fintech firms they back (a) do business in the UK (or plan to start doing so in 2025), and (b) have yet to set up an FCA authorised UK entity. If you have an international presence, you could directly contact EU based firms that you deal with to see if this is an issue for them. As the FCA in many cases has to explicitly approve the proposed CFO, their safest bet to ensure their authorisations go through as quickly as possible is to find a CFO who was previously approved by the FCA in their current / last role. NB I was approved by the FCA to act as CFO in my last role, which was with an FCA regulated business. I also helped a previous client prepare their FCA application and have strong regulatory experience, so if you find an EU client needing to hire a CFO for a UK entity, please keep me in mind. All the best in signing up a few new clients! #Fintech #recruiting #VentureCapital #CFO

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One way Fintech CEOs can potentially save themselves £150k+ is to hire a CFO with strong regulatory experience. (Suggestions for CEOs and CFO recruiters) The FCA takes a firm line on ensuring that UK Fintech firms they have authorised have a strong controls environment in place and a suitable FCA approved senior leadership team. From the initial application process, firms are expected to list our the senior leadership team to be approved by the FCA as part of the initial authorisation process, and also to list out key operational processes and controls. For authorised firms, the FCA also expects the firm to be able to demonstrate ongoing compliance with FCA requirements after authorisation.  EG for Electronic Money Institutions (EMIs), the FCA requires the firm's auditors to sign off on report confirming that client money is being adequately safeguarded on an annual basis. If the FCA has any grounds for concern about the adequacy of the processes and controls in place, they have a range of options available to them - e.g. requiring the firm to commission a Section 166 review (typical cost starts at around £150k, plus any further internal costs). The FCA may also tell the firm not to sign up new clients until they can demonstrate a suitable controls environment, tell firms to stop doing new business with existing clients, or even withdraw authorisation for the firm to operate in the UK. Key players in maintaining a strong controls environment normally include the finance and operations teams (who design, implement and operate the processes that meet the regulatory requirements day to day), the compliance team and board are also typically involved in initial design and subsequent higher level oversight of the finance and operations proposed processes and controls as they evolve over time. The CFO is normally a key person involved in ensuring you meet many of your ongoing regulatory requirements day to day. The type of CFOs most likely to have strong experience in this areas include: ✔ those who trained in leading audit firms and were actively involved in activities like ✅ reviewing client compliance with control frameworks, ✅ helping clients design FCA compliant processes and controls, ✅ helping Fintech / FS firms in their preparations for applications for FCA approval, ✔ and / or CFOs who were previously authorised by the FCA in earlier CFO roles and took an active part in risk committees in authorised firms.  So in summary, my advice to any CEO who is worried about passing things like client money audits is to hire a CFO who has done relevant controls advisory work whilst working for a leading audit firm, and / or has demonstrable experience in working closely with compliance team in regulated businesses and has previously been approved by the FCA in a regulated business. (I have been actively involved in all of the above and was approved by the FCA for the CFO role with my previous employer). #Fintech #CFO #recruiting

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Paythru releases guiding principles EV payment specialist Paythru has published a proposed set of guiding principles aimed at greater collaboration among the payments sector, public charge point operators, and charge point management systems. The move has been undertaken by the firm to address current problems with the charging payment process. Shaped by its own research, and conversations with the industry around what drivers want. It is also backed by the Association for Renewable Energy and Clean Technology (REA), as part of its ongoing mission to accelerate the UK’s transition to a cleaner, more sustainable energy future. Paythru proposes the following set of guiding principles for all EV charge points, with the methods addressed in the charter: - No more confusion over charging costs - Standardised and reliable payment methods - Minimise payment failures - Clarity and transparency in pre-authorisation - Simplified transaction and notification processes Read the full story on the Transport + Energy website: https://lnkd.in/er6zB4QF Paythru , Keith Brown , REA , Matthew Adams , Sara Sloman #transport #energy #electricvehicles #charging #payments

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Coventry Building Society buying Co-op Bank and what does this mean for the market? 💹 In a reported £780m deal, this could rocket CBS to being roughly the 6th largest bank in the UK 🚀 Experts have long warned that UK mid-tier banks need to grow in scale through mergers in order to compete with their larger peers but integrations in the sector are difficult to execute due to the challenges of merging balance sheets and IT systems. This comes after Nationwide announced last month they're buying Virgin Money for £2.9bn. What's your thoughts on the impact this will have in the banking space? 🤔

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HM Treasury published its National Payments Vision, outlining an ambitious plan to create a trusted, world-leading payments ecosystem built on next-generation technology. The Vision sets the strategic direction for the UK’s payments sector, ensuring it continues to drive economic growth, foster innovation, and offer diverse payment methods to consumers and businesses. Key strategies include:  ➡️ New initiatives, such as the Payments Vision Delivery Committee, to streamline regulatory efforts and support the UK’s transition to next-generation payment systems; ➡️ The prioritisation of Open Banking, with plans to improve account-to-account payments and explorations into a retail Central Bank Digital Currency (Digital Pound); and ➡️ Tackling payment fraud, with enhanced measures for consumer protection and collaboration across sectors, including technology and telecommunications. ✅ Payment firms are encouraged to align their strategies with these advancements, ensuring they remain competitive and compliant. https://lnkd.in/e4WcFtzb

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💼 Big changes ahead in UK banking compliance 💼 The UK is about to see significant adjustments in its bank ring-fencing rules—set to transform growth, competition, and operational flexibility for banks across the country. Here’s what’s coming: 🔘 More exemptions for retail banks focused on investment activities under 10% of Tier 1 capital 🔘 A higher deposit threshold for ring-fenced banks, moving from £25 billion to £35 billion 🔘 New measures to support investment in UK SMEs and ease compliance These changes offer an exciting landscape for financial growth, but they also bring new compliance challenges. Need guidance on staying ahead? I can connect you with market-leading compliance experts who specialise in navigating the UK’s banking landscape. You can read more on the reforms here: https://lnkd.in/ekT63i9J #ComplianceMatters #ComplianceRecruitment #Compliance #ComplianceNews #ComplianceJobs

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Does your bank app have an "emergency banking mode", so that when all else fails, their basic offering keeps operating? No, is the answer. If you're banking with an incumbent, the answer is almost certainly no. They've got enough trouble trying to keep the lights on with their primary systems. If you're banking with a neobank, the answer is generally going to be 'no' as well. Most of them don't have anything anywhere near the scale of what Monzo Bank has built. Here's their VP of Engineering Thomas Leitch discussing their approach.

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Make sure your card scheme fees line up and never miss a scheme reporting deadline again with our bespoke card scheme reconciliation → https://bit.ly/3YVgFcV No matter how many transactions you handle, which payment processors you partner with, and what format your reports need to be; you can have confidence in our fully customisable solution. Aurum will always meet your needs. #issuing #acquiring #payments #fintech

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UK, FCA - FCA publishes update on cash savings market and fair value The FCA has published an update on the actions it has taken since the July 2023 cash savings market review, and the work they have done with the largest 9 firms on the value they provide. The average interest paid on easy access savings accounts rose to 2.11% in June 2024, up from 1.66% in July 2023 when we published our review. We estimate savers are £4bn a year better off from higher interest rates as a result. The latest analysis also shows that while firms were benefitting as base rates increased, these benefits were increasingly passed to savers. The FCA continues to encourage savers to shop around to get the most from their money. There were 174 accounts that offered over 4% interest in August, while the largest firms continue to pay below average for easy access products. Switching is straightforward – and 89% of ISA switches happen within 7 days. Consumers should also consider if easy access accounts are best suited to their savings needs. As the base rate has started to fall, this has impacted the interest rates offered. Read our update on cash savings. https://lnkd.in/eTwQ6-Y2 To stay updated with regulatory & legal change, subscribe to Reg-Intel @ illumini.ai......Reg-Intel includes 900+ live, direct from regulator, feeds, updating intra-day, covering 11 sectors of financial services covering 200+ countries and 600+ regulators. Reg-Intel includes a fully enabled advisory AI and a live global, original document law & regulation repository for you to access, whether on your desk top or on the go via the app. Subscriptions are £12pp/pm #UK #FCA #Fairvalue #CashSavings #Banking #Savings #Compliance #Risk #Legal

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✨How will a new government impact the UK FinTech scene? Here's how... Politics aside, the incoming Labour government has unveiled significant plans to supercharge the UK FinTech market. Here’s how they aim to support this dynamic sector: 🔵 Innovation-Friendly Regulation: Establishing a Regulatory Innovation Office to streamline regulations and accelerate approval processes, paving the way for financial services growth. 📈 🟠 Advancing AI and Open Finance: Prioritising AI development and expanding Open Banking to include a wider range of financial products, fostering competition and innovation. 💡 🟢 Supporting SMEs: Enhancing cash flow access for SMEs through stricter late payment penalties and promoting collaboration between FinTechs and banks for sustainable financial practices. 💼 Please take a look at the in-depth article from our friends at FintechGlobal for full details. #UKFinTech #AI #OpenBanking #SMEs #RokaSearch

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Thanks for sharing our news FF News | Fintech Finance!

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What's happening in payments compliance: BNPL Firms Enthusiastic As UK Government Unveils Legislation 👉 Buy now, pay later (BNPL) firms and other stakeholders have applauded the UK’s new Labour government for introducing regulation that will bring firms into the scope of supervision from the Financial Conduct Authority (FCA) 👉 The new legislation brings an end to a string of consultations and commitments that extend back to 2021 👉 Stakeholders have until November 29 to respond to the government’s consultation on the new regulatory proposals 📖 Read the full article: https://lnkd.in/e8jywJUT #paymentsnews #paymentscompliance #bnpl

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