The rise of technology requires a careful balance between innovation and risk management, i2c Chief Client Officer Serena Smith writes in a new PYMNTS eBook, “Beyond the Horizon: How to Identify Unexpected Threats That Could Impact Your Business.”
As we move forward into the second half of the year, the payments industry continues to be as dynamic and unpredictable as ever. Here are my insights into the wild cards that could impact our industry, potentially serving as either headwinds or tailwinds for companies navigating these turbulent times.
One of my foremost concerns is the rise in fraud and delinquencies in credit card processing. The increase in delinquencies is particularly alarming as it signals deeper issues within our financial ecosystem. In addition, many startups are or have failed, which added to the heightened regulatory oversight on and from banks. While necessary, this oversight creates longer due diligence periods for both startups and existing clients, significantly slowing down industry approvals and innovation.
Regulatory changes and political instability are also high on my radar. With recent industry collapses and evolving regulations, banks are experiencing increased pressure to comply with a myriad of new rules. This is not just a domestic issue; global regulations such as GDPR in Europe and specific mandates in regions like Bahrain require financial institutions to adapt quickly and efficiently. i2c Inc. is uniquely positioned to assist in this regard, offering a single tech stack that supports compliance with various global regulations, enabling institutions to scale without getting bogged down by regulatory complexity.
Another unpredictable factor is the rapid pace of technological advancement. Emerging technologies being created with artificial intelligence (AI) and continued releases like FedNow present both opportunities and challenges. Banks struggle to determine where to invest in the payments landscape, with numerous options complicating decision-making. The rise of these technologies requires a careful balance between innovation and risk management.
i2c Inc. is at the forefront of helping financial institutions navigate these technological waters. We provide resources and insights to help banks prioritize consumer needs, AI tools to combat fraud and offer additional reporting for regulatory compliance. By leveraging our thought leadership and product solutions, banks can make more informed decisions about their technology investments, ensuring they remain competitive and compliant in a rapidly changing environment.
Market volatility and economic uncertainty are perennial wild cards that can impact the payments industry. It’s crucial to be prepared for sudden market swings, geopolitical instability and other unexpected events that can disruptbusiness operations. i2c Inc. offers robust tools and strategies to help financial institutions weather these storms.
In conclusion, while the future is inherently unpredictable, having a strategic partner like i2c Inc. can make navigating these uncertainties more manageable. My insights underscore the importance of proactive planning and the adoption of innovative solutions to stay ahead in the ever-evolving payments landscape. By focusing on fraud prevention, regulatory compliance, technological advancement and market adaptability, i2c Inc. helps financial institutions not only survive, but thrive amid the wild cards of today’s business environment.
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