Faster and cheaper for whom?
When I worked in a credit union, I oversaw the installation of new AML/CFT (or BSA) software for our credit union to use. The salesperson promised the installation would be seamless and had all the answers. Despite all of this, it was staggering to realize the amount of work needed that could not be anticipated. The software worked fantastic and was an improvement over the previous version. But still, the unexpected items were the ones that took so much time, effort and expense to resolve. New processes and procedures surrounding the use of the software had to be put in place, new forms needed to be developed, programming by IT, training, coordination with other departments, validation of data, establishing new audits and audit procedures, and the list goes on.
This month, there was a focus on reforms to payments systems. The Bank of International Settlements hosted the BIS Innovation Summit that explored many of the innovations in the payments area. Jerome Powell commented at a conference hosted by the Committee on Payments and Market Infrastructures (CPMI) about pushing the frontiers of payments towards faster, cheaper, more transparent and more inclusive cross border payments. I urge you to look at the replays and comments from those conferences to get insights into the upcoming changes in the payments landscape. Those potential changes are staggering.
But this brings me back to my initial comments. All these changes are important and even perhaps necessary. But that change, whatever form it may take, will undoubtedly bring our industry many of those unexpected compliance and operational challenges and costs, just like my software conversion from years ago.
Those costs will be disproportionately borne by credit unions, as compared to the larger financial institutions with vast resources. World Council will make sure proportionality will be considered as these changes are contemplated, making things. faster and cheaper for credit unions too!
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