The case for better payment network knowledge within banks
Why fragmented access to payment network updates is holding banks back
In the world of payments, staying up to date is essential. Payment networks such as Visa and Mastercard regularly issue updates on compliance, security, products and innovation that banks rely on to stay competitive.
For banks, these updates are more than notifications; they are critical guides for maintaining smooth operations and staying competitive. Yet, for many banks's employees, accessing and using this information feels far harder than it should be.
But why is it so difficult?
We live in an age where almost any information is just a search away. But in specialised industries like payments, siloed systems and teams can make getting these updates surprisingly challenging. As a result, many stakeholders are left with fragmented access to essential knowledge.
This isn't just frustrating; it can cause a significant knowledge gap that could put the banks and these stakeholders at a disadvantage.
Why payment network updates matter
Payment networks regularly issue updates and announcements covering everything from the latest technical requirements, updated fees and costs, and new product announcements to security mandates, fraud prevention and recovery measures.
These updates are guides that help banks adapt to stay updated with new payment trends and products and ensure compliance with technical requirements to avoid non-compliance, innovate new product offerings and improve customer experience.
These updates aren't just for compliance teams. They affect everyone at the bank, from the fraud team, product managers, finance team and even marketing and customer support. For example, when a new update about the chargeback process is released, it might require changes and updates in workflows across operations, fraud recovery management, and customer support, with each team needing to understand the update to act quickly and efficiently.
But what happens when only part of the organisation receives this information or gets it too late? Delays, misalignment and missed opportunities.
The current distribution process
Most payment networks share updates through dedicated platforms, portals or websites. While accessible, these updates often only reach specific teams (usually scheme compliance or operations), which are responsible for distributing them across the organisation.
But what if the information does not flow to everyone?
While compliance teams do their utmost best to distribute the updates, especially when they have a compliance impact, some updates might not be shared as effectively, especially if there are no direct compliance impacts. Does it mean they are not relevant?
Many banks rely on processes where one team receives updates and passes them along to others to keep an overview of updates that have compliance impacts. While this approach ensures that the team keeps an overview of the compliance, it might create some bottlenecks and challenges in knowledge sharing:
For time-sensitive requirements, these inefficiencies can lead to high risk and consequences like non-compliance, financial penalties or reputational harm. And for other updates, not being aware of newly launched scheme's products can lead to slower product development. Similarly, missing out on the sunset date for a new service can result in the bank paying for unused services.
A better way to share information internally could give banks a real edge by empowering employees to excel in their roles.
The competitive advantage of accessible knowledge
Easy access to payment network updates is not just necessary but a competitive advantage. When every team has the insights they need, they can innovate faster, strengthen security, save costs and hit deadlines. It's about shifting from reacting to changes to staying ahead of them. And with the right processes and technologies, banks can do more than just comply.
In an industry where change is constant, staying informed is critical.
At Rivero, we are passionate about payments and payment operations, and our mission is to help banks remain competitive and achieve excellence in operations.
With our solution, Kajo, we want to transform the approach to payment network updates from a fragmented compliance challenge to a strategic advantage. By giving every team fast and easy access to a knowledge hub of all the payment network updates they need, we help banks simplify the information flow in the organisation to innovate faster, maintain compliance and deliver exceptional customer experience.
To learn more about Kajo, don't hesitate to contact our team for an introductory call.