STRENGTHENING COMPLIANCE AND STRATEGIC ALIGNMENT FOR A GLOBAL PAYMENTS PROVIDER
- 5 days ago
- 3 min read
Introduction to Global Payments Compliance Challenges
The payments industry is facing unprecedented regulatory scrutiny and operational complexity. Compliance costs for financial institutions have risen dramatically,with studies reporting that compliance spending in the financial sector has risen by over 60% in the last decade. For global payment providers, managing cross-border regulations, multiple banking relationships, and robust data protection practices is essential to remain competitive, risk aware and compliant.
This case study explores how Allyiz helped a large global payments provider strengthen its compliance framework, improve partner relationships, and create a unified strategy for growth and risk management.
Why Compliance and Strategy Matter for Payment Providers
Payment providers face unique challenges due to the diverse regulatory environments they operate in. Without a unified strategy, companies risk inefficiencies, regulatory breaches, and missed growth opportunities. A well-defined compliance structure not only mitigates risk but also supports innovation and operational excellence.
Key Challenges Faced by the PSP
Before engaging Allyiz, the client faced several critical issues:
Lack of Unified Strategy
Business units operated in silos, with unclear strategic direction.
Weak Partner Engagement
The relationship with a major bank, the primary banking partner, relied on outdated contracts that lacked fairness and strategic alignment.
Insufficient Compliance Resources
The compliance team consisted of just two members, despite increasing regulatory complexity.
Limited GDPR Integration
GDPR and DPA requirements were not fully recognised and embedded in product development or operational processes.
No Structured Fraud Policy
Fraud management relied on informal practices, increasing potential risk exposure.
How Allyiz Conducted a Comprehensive Compliance Review
Allyiz conducted a two-day onsite review, working closely with senior management and key stakeholders. The review included:
Strategic Alignment Assessment: Evaluating how acquisitions and business units aligned with overall group objectives.
Product Development Review: Examining onboarding processes and the inclusion of regulatory compliance in new product frameworks.
Governance and Partnerships: Reviewing contracts and relationships with banking and third-party partners.
Compliance Team Capability Assessment: Evaluating the adequacy of the compliance structure and resources.
Fraud and Information Security Review: Identifying gaps in GDPR awareness, fraud policy, and information management and security procedures.
Strategic Recommendations and Action Plan
Following the review, Allyiz provided a comprehensive set of recommendations:
Clarify group-wide strategy: Establish a unified vision across all business units.
Diversify banking partnerships: Reduce dependency on a single bank by engaging additional banking partners.
Increase compliance team resources: Expand the compliance team to handle increasing regulatory demands and evolving business requirements..
Implement a structured fraud policy: Conduct a long-overdue fraud audit and create clear processes for fraud prevention.
Enhance contract governance: Introduce policies for periodic contract reviews and ownership accountability.
Improving GDPR and Fraud Management in Payment Services
The review identified limited references to GDPR and DPA within product development documentation. Allyiz recommended:
Embedding GDPR/DPAcompliance into every stage of product and service development.
Performing Data Protection Impact Assessments (DPIAs) for all new and modified processes.
Training staff on GDPR/DPA obligations, with periodic refreshers to ensure compliance remains a priority.
The absence of a fraud policy was another critical gap. Allyiz advised the development of a formal fraud policy and a scheduled fraud audit to proactively understand and manage internal and external fraud risks.
Strengthening Contract and Partner Management
The client’s relationship with its Banking Partner was heavily imbalanced, with outdated contracts favoring the bank. Allyiz recommended:
Renegotiating contract terms to ensure fairness and flexibility.
Reintroducing senior-level engagement to strengthen strategic collaboration.
Diversifying banking relationships to enhance operational resilience and reduce risk.
Key Outcomes and Business Impact
As a result of Allyiz’s engagement, the client gained:
A clear roadmap for compliance and strategic alignment.
Defined roles and responsibilities across group and business-unit teams.
An enhanced approach to GDPR/DPA compliance and fraud management.
Actionable steps to strengthen partner relationships and contract governance.
These improvements positioned the company to reduce compliance risks, improve efficiency, and support long-term growth.
FAQ
Why is compliance so critical for payment providers?
Compliance failures can result in heavy fines, reputational damage, and the loss of crucial banking relationships.
How can payment providers strengthen GDPR readiness?
By embedding GDPR and local market equivalents, into all product and operational processes, conducting DPIAs, and training staff regularly.
What is the role of partner management in compliance?
Strong banking and partner relationships provide better strategic support, reduce operational risks, and help meet regulatory obligations effectively.
