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Oversight and risk management of payments schemes
Journal of Risk Management in Financial Institutions,
15
(4),
418-428
(2022)
Abstract
Retail payments have become a strategic item on the agenda of the boardrooms of banks and fintechs. Innovation and competition in methods of payment have increased significantly over the past decade, resulting in more choice and better customer experiences for consumers. The downside of this positive development is that the risks in payments have increased. This paper analyses these developments and shows why and how the oversight of central banks has spread to retail payments. It also discusses how owners of payment schemes can respond to this by setting up an adequate risk management system that monitors the main risk areas, but also takes into account changes and innovations in the payment landscape due to technology and legislation.
Keywords: scheme management; risk management; oversight of payment schemes; operational risks; cyber risks; third-party service providers; payment chains
The full article is available to subscribers to the journal.
Author's Biography
Piet M. Mallekoote is CEO at the Dutch Payments Association, whose members are payment banks and payments institutions in the Netherlands. Piet is also CEO at the iDEAL payment scheme. He chairs several steering and stakeholder groups on innovative payments and is involved in many national and international meetings on payments. Piet has a degree in economics from the University of Amsterdam.
Suren K. Balraadjsing works at Currence as a senior auditor and is responsible for scheme admission of parties wishing to offer Currence products iDEAL (payments) and iDIN (digital identity) to their end users. Suren holds a degree in Economics from Tilburg University. He has many years of banking experience in various positions and applies this knowledge in his current position. He is a chartered auditor and member of the interbank audit platform of the Dutch Banking Association (NVB).
Citation
Mallekoote, Piet M. and Balraadjsing, Suren K. (2022, October 1). Oversight and risk management of payments schemes. In the Journal of Risk Management in Financial Institutions, Volume 15, Issue 4. https://doi.org/10.69554/BLWG3130.
© Henry Stewart
Publications LLP
Publications LLP