/regulation & compliance

News and resources on regulation, compliance, legal and governance issues for banks and fintechs.

Níamh Curran

Digital Pension Dashboards and why we need them

Níamh Curran - Senior Reporter - Finextra
Discussion
Stripe blames regulatory landscape for move to invite-only in India
Ketharaman Swaminathan

Ketharaman Swaminathan

  In between, the Indian banking regulator drastically increased the scope of merchant due diligence that payment aggregator license holders like Stripe need to carry out to onboard new merchants. It was earlier like KYC that could be carried out by the merchant in self-service mode. It has now become like KYB that needs to be carried out by PA via physical verification. Experts told Economic Times last month that the change in reg announced by RBI would increase efforts and costs for PAs and slow down merchant onboarding by 9X. Notwithstanding what Stripe is saying about commitment to India now, I wouldn't be surprised if it's effectively bidding sayonara to the Indian market, just like many merchants did on the back of Reg Emandate announced by RBI for recurring payments 2.5 years ago.
Stripe blames regulatory landscape for move to invite-only in India
Hitesh Thakkar

Hitesh Thakkar

  Stripe received Payment Aggregator license (in-principle) in early 2024 so now next step is to put up infrastructure which as per regulator (RBI) need to follow it's cyber security controls, process and procedures. Back of the envelope calculation on timeline  1 3 to 4 months to setup infra and controls.DC + DR ( In India). 2. 3 to 4  months for PCI and ITGRC norms audits May or June 2025 seems reasonable cooling time justified.
Klarna labels CFPB BNPL rule 'baffling'
Ketharaman Swaminathan

Ketharaman Swaminathan

  A big market segment of BNPL is Ultra Sub Prime. A majority of BNPL users are unlikely to qualify for a credit card. Besides, even when a BNPL user repays her EMIs on time, it will ding her credit score because of how credit score systems are designed. So viewing BNPL as credit card purchase against installments betrays fundamental lack of understanding of the nuances of the two products.
Klarna labels CFPB BNPL rule 'baffling'
Hitesh Thakkar

Hitesh Thakkar

  CFPB is viewing BNPL as product purchase on EMI linked to Credit Card so what's wrong in it? 
Hamish Monk

How to prepare for DORA

Hamish Monk - Writer - Finextra