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Regulations and compliance

11 articles

What is PCI DSS? The best explanation

Last Updated: July 14, 2023

What is PCI DSS? It is an acronym for Payment Card Industry Data Security Standard, which is a globally recognized set of regulations designed to help protect the confidentiality, integrity, and availability of cardholder data. It was initiated and is governed by the Payment Card Industry Security Standards Council (PCI SSC), an organization founded by...

What are the key concerns when choosing the core banking system from the perspective of regulatory compliance?

Last Updated: July 26, 2023

Navigating the choppy waters of regulatory compliance requires a core banking system embedded with the right set of tools. These should encompass features like regulatory reporting, AML procedures, KYC protocols, and region-specific operations such as customer risk profiling or transaction monitoring. Building a Future-ready Framework In the ever-evolving landscape of regulatory requirements, your core banking...

What is Open Banking, and why do banks, payment institutions and e-money institutions in the EU must publish Open Banking API?

Last Updated: July 14, 2023

Open banking is carving a new path in financial services by championing a move towards a hyper-connected, transparent, and customer-centric ecosystem. The introduction of open banking API (Application Programming Interfaces) lies at the heart of this revolution, promoting secure data sharing and fostering stronger interactions with authorised third-party providers (TPPs). Navigating Open Banking in Europe...

What is strong customer authentication (SCA) regulatory technical standard (RTS)?

Last Updated: July 18, 2023

In the shifting world of digital finance, regulatory oversight plays a crucial role in keeping online transactions secure. A central pillar of this framework, under the Revised Payment Services Directive (PSD2), is the concept of Strong Customer Authentication (SCA). But what is Strong Customer Authentication actually? This innovative method enhances online transaction security, promotes user...

Can push notifications be considered compliant with SCA RTS?

Last Updated: July 15, 2023

The landscape of modern financial technology is rapidly evolving, with push notifications becoming an indispensable tool in the Strong Customer Authentication (SCA) Regulatory Technical Standards (RTS). While not a standalone solution, when skillfully integrated within two-factor authentication mechanisms, push notifications can significantly enhance security and compliance within digital banking environments. Leveraging Independence The principle of...

Why is it important to use multi-factor authentication (MFA) when accessing a cloud-based core banking system?

Last Updated: July 16, 2023

When it comes to operating in the digital financial landscape, securing a cloud-based core banking system is non-negotiable. Multi-factor authentication (MFA) serves as the vanguard of these security measures, providing a robust defense mechanism that stretches far beyond the traditional username and password combination. Here’s why implementing MFA is critical to your financial institution: The...

Why is it essential to have comprehensive user management in the banking software?

Last Updated: July 16, 2023

In the realm of core banking systems, comprehensive user management is far from a mere convenience—it’s an absolute necessity. Let’s delve into the critical elements of user management in a banking software and uncover its significance in fortifying security, ensuring compliance, and enhancing operational efficiency. Robust Access Control: The Guard at the Gate A core...

Why is it important for the modern cloud-based core banking system to be built around a general ledger and have a chart of accounts?

Last Updated: July 16, 2023

In today’s dynamic financial environment, a modern core banking system must serve as more than just a platform for transactions—it should double as a comprehensive financial management tool and a fully fledged bank account software. A bank account software built around a general ledger, equipped with a well-defined chart of accounts, is vital to maintaining...

Is it possible to obtain necessary information for regulatory reporting if an institution uses a core banking system with no general ledger and chart of accounts?

Last Updated: July 16, 2023

Modern financial institutions must navigate an increasingly complex regulatory landscape. Regulatory reporting software is no longer a luxury—it’s a necessity. A core banking system without a general ledger and chart of accounts is like a ship without a compass. It leaves you adrift in a sea of disorganized financial data, which can hinder your regulatory...

Why is there a need for customer risk scoring and transaction risk scoring?

Last Updated: July 16, 2023

Navigating the treacherous waters of the financial services sector often necessitates an understanding of risk that is as deep as it is nuanced. In this context, risk scoring emerges as a reliable compass guiding institutions through the haze of potential hazards. Both customer risk scoring and transaction risk scoring play pivotal roles in this journey....

Why is it ineffective or even dangerous to outsource the risk scoring from a third party without having it as a part of the cloud-based core banking software?

Last Updated: July 16, 2023

In the dynamic landscape of financial services, risk management plays a pivotal role in maintaining business integrity and securing customer trust. One of the critical facets of risk management is risk scoring, and the question that frequently surfaces is, should this process be outsourced, or can it be more efficiently managed in-house within a cloud-based...