Skip to content
CrossTech is part of The Platinum Network. Become a Member!
  • enEnglish
  • esEspañol
  • pt-brPortuguês
Linkedin page opens in new windowYouTube page opens in new windowTwitter page opens in new windowFacebook page opens in new windowInstagram page opens in new window
CrossTech
Cross Border Payments
CrossTechCrossTech
  • Home
  • About Us
    • Board of Directors
    • Who comes to CROSSTECH?
    • Industry Associations
    • WOMEN IN THE MONEY TRANSFER INDUSTRY AWARDS
    • IDFR – International Day of Family Remittances
    • Contact Us
  • Conferences
    • PAYMENTS 2023
    • Past Conferences
      • IMTC WORLD
        • WORLD 2022
        • IMTC WORLD 2021
        • IMTC WORLD 2020
      • IMTC LATAM
        • LATAM 2022
        • IMTC LATAM 2021
        • IMTC LATAM 2019
      • REGLIANCE
        • REGLIANCE 2021
      • IMTC EMEA
        • IMTC EMEA 2021
        • IMTC EMEA 2019
        • IMTC EMEA 2018
      • IMTC ASIA
        • IMTC ASIA 2018
        • IMTC ASIA 2016
      • IMTC AFRICA
        • IMTC AFRICA 2019
        • IMTC AFRICA 2017
      • IMTC BRASIL
        • IMTC BRASIL 2018
        • IMTC BRASIL 2016
      • REMTECH AWARDS
        • CROSSTECH AWARDS 2022
        • REMTECH 2020
        • REMTECH AWARDS 2019
    • Past & Present Sponsors
    • Past Speakers
    • Past Participants
  • Magazine
  • Blog
Search:
  • Home
  • About Us
    • Board of Directors
    • Who comes to CROSSTECH?
    • Industry Associations
    • WOMEN IN THE MONEY TRANSFER INDUSTRY AWARDS
    • IDFR – International Day of Family Remittances
    • Contact Us
  • Conferences
    • PAYMENTS 2023
    • Past Conferences
      • IMTC WORLD
        • WORLD 2022
        • IMTC WORLD 2021
        • IMTC WORLD 2020
      • IMTC LATAM
        • LATAM 2022
        • IMTC LATAM 2021
        • IMTC LATAM 2019
      • REGLIANCE
        • REGLIANCE 2021
      • IMTC EMEA
        • IMTC EMEA 2021
        • IMTC EMEA 2019
        • IMTC EMEA 2018
      • IMTC ASIA
        • IMTC ASIA 2018
        • IMTC ASIA 2016
      • IMTC AFRICA
        • IMTC AFRICA 2019
        • IMTC AFRICA 2017
      • IMTC BRASIL
        • IMTC BRASIL 2018
        • IMTC BRASIL 2016
      • REMTECH AWARDS
        • CROSSTECH AWARDS 2022
        • REMTECH 2020
        • REMTECH AWARDS 2019
    • Past & Present Sponsors
    • Past Speakers
    • Past Participants
  • Magazine
  • Blog

FROM DERISKING TO DETENTE

You are here:
  1. Home
  2. Artículos
  3. FROM DERISKING TO DETENTE
Oct162017
ArtículosDe-RiskingIMTC

Key positive developments in banking for MSBs

It’s been a bleak period for money transmitters over the past several years. The specter of derisking —that business-killing policy of many banks in the US and globally—may be disappearing. At least in the US where other entities are stepping up. Our colleagues in other parts of the world are still seeing their local banks derisking yielding to the pressure of large global banks.

So, in preparing for the panel on “Derisking and MSB Friendly Banks” that I am coordinating with Hugo Cuevas-Mohr for IMTC WORLD 2017 I came up with 7 emerging factors that are giving hope to a strong, but beleaguered industry.

Emergence of de novo entries:
At least 3 groups have received or applied for a bank charter this year. Each has a mission to fill the void of the paucity of banks supporting the industry. Consistent with banking regulations, potential MSB clients, the Due Diligence process will match similar requirements in order to be approved. Stay tuned.

Strategy shift among progressive banks:
the great thing about open markets is the natural tendency to fill the void left by the major banks. The hurdles thrown at MSBs by the national and regional FIs make it nearly impossible to obtain and retain a trust account. However, new banks are emerging with a mission to accept MTOs as clients

OCC Charter
Whether or not it goes thru, the notion of a federal charter for MSBs is not only appealing, it also may signal creative approaches to working with the industry. Even if this idea gets blocked by the states, it’s a good start.

Growth of Online/digital services:
The need for a branch network has been diminished, effectively expanding the playing field for smaller regional and community banks. Online providers have no agents; they simply need an FI for settlement purposes: ACH and wires.

Greater understanding of MSBs:
it’s no longer “one size fits all” for MSBs. Some FIs encourage relationships with Check cashers, while others welcome 3rd party payment processors, etc. Banks are building their risk-based schemes and looking for MSBs that fit their risk profiles. MSBs should have a variety of options in the years ahead. Each IMTC we see more banks coming to the industry to offer their services.

Globally, other types of banks are emerging:
In the UK, for instance, 2 new banks (Clear Bank and BFC) are courting MSBs. And the FCA (the UK regulatory authority) is openly encouraging banks there to reconsider their position on derisking. India has developed their “Payment Banks” to open the space for large MSBs. Puerto Rico has implemented the “Entidades Financieras Internacionales” and these new banks, often formed by MSBs are beginning to offer their services to other MSBs.

Regulators are more pro-MSBs
in some cases, they are recommending certain MSBs to banks, saying they are a smart investment. Earlier this year the DFI for State of Texas drafted a bill to pave the way for startups and early stage MSBs to have lower hurdles for licensure. The bill has not been introduced, but shows a sensitivity to our industry challenges. Regulators in many jurisdictions are requiring banks to fill complete reports on bank closures or account opening denials of their licensed entities so they can closely monitor the issues and complaints.

Keep your eyes on the road
So, you see, it’s not all bleak for MSBs; the sky is not falling, some banks are friendly and regulators are coming to your side. As we look toward 2018, there are signs on the horizon that one of the industry’s critical issues may be scalable.

Categories: Artículos, De-Risking, IMTCBy Rob AyersOctober 16, 2017
Share this post
Share on FacebookShare on Facebook TweetShare on Twitter

Post navigation

PreviousPrevious post:Identity Matching in the Money Transfer & Payments IndustryNextNext post:MONEYGRAM’S CFIUS SITUATION

Related Posts

Estados Unidos abre las fronteras a viajeros internacionales completamente vacunados en Noviembre
October 19, 2021
IMTC WORLD: El mayor evento de servicios financieros transfronterizos que reúne a la industria año tras año.
October 15, 2021
Meet Patrice Kiiru and His Outlook on African Remittances
September 2, 2020
RCTF – The Private Sector Workstream – April 30, 2020 Virtual Roundtable
May 2, 2020
Creativity in Times of Hibernation
April 18, 2020
Remittance Community Task Force: Facing the Challenges of COVID-19
March 31, 2020
Are you a PNET Member?

If you have not joined our industry community yet, go to PNET and sign up. You can get membership perks and discounts for IMTC conferences!

Keep on Learning!
Check our online courses:

MTTC Money Transfer Compliance Certication Course. Check the version in English &  la versión en Español.
Watch video presentation of our courses here.

PNET Logo
The CrossTech Conferences are developed by The Platinum Network, producer of the CrossTech Innovation Awards --formerly the Remtech Awards-- and the CrossTech Compliance Conference. --formerly Regliance--

THE PLATINUM NETWORK
7700 N Kendall Dr Suite 407
Miami, Florida 33156

WhatsApp: +1 (786) 731-5507

Important Links
IMTC in Twitter
IMTC Linkedin Group
IMTC in YouTube
IMTC in Facebook
IMTC in Instagram

Terms & Conditions
Visa Letter Information
Privacy & Cookie Policy
Hotel Reservation Fraud
Latest Tweets
  • #ApplePayLater users will be able to manage, track and repay their loans in their #Apple Wallet, the company said i… twitter.com/i/web/status/16411…

    About 2 hours ago

  • The Miami Downtown Development Authority (DDA) is the economic agency for the City of Miami’s urban core. It mainta… twitter.com/i/web/status/16408…

    March 28, 2023 9:58 pm

WhatsApp us