Idzik Ltd

Risk Management in FinTech

Fintech innovations are fascinating, but regulatory compliance and fraud prevention can constrain business growth and impact pricing for retail customers ...

Comprehensive Risk Management, based on "decision logic"/BRMS (Business Rule Management System), must integrate data from external sources and correlate events under different control frameworks, in order to produce baseline for identification and escalation of all potential anomalies:

- KYC validation

- Regulatory compliance: sanctions checks, PEP checks, etc

- AML investigation

- Customer/transaction scoring

- Real-time Fraud prevention


PSD2 - new opportunities for FinTech industry


Revised Directive on Payment Services (PSD2) implements two big changes to EU payment system:

Account Information Service Provider (AISP)

- consolidate customer’s bank account details from several different banks (balance, transactions, history) in one place, on one application, for example: Mint.com

Payment Initiation Service Provider (PISP)

- merchants will get the payment directly from the customer’s bank – without using any intermediary, for example: Sofort Banking, SEPA direct debit, Giropay