Money Mobility Tracker – April 2022
April 19, 2022
What is the greatest risk for FinTechs and neobanks attempting to manage the money-in side of money mobility completely in-house?
There are a number of challenges with managing money-in capabilities using an in-house team. For example, the sheer scale and resources needed to maintain true money mobility capabilities — frictionless inbound funding from any source — can always be a roadblock.
However, the biggest risk of relying solely on in-house teams is fraud. An environment defined by instantly available funds arriving from a variety of accounts and transaction mediums — checks, cash, ACH, apps, etc. — that cannot be clawed back or deducted if later determined to be fraudulent puts an enormous amount of pressure on teams to get it right the first time, every time.
That is an unfair expectation because in-house teams are inherently hamstrung by a lack of visibility into the many types of fraudulent actors and behaviors that exist across the entire financial marketplace. Seeing only a tiny glimpse of the market by virtue of their own transaction history leaves them unprotected.
Even in the case of banks, which have access to robust fraud databases, there are gaps in coverage because these systems do not track nonbank transactions and behaviors. And this nonbank transaction environment is often where the most severe fraud risks exist because they operate outside of traditional, in-person know your customer and anti-money laundering protections.
The most effective fraud protection system, then, is one that has a complete view of the marketplace and can create a cross-functional network effect. For in-house operations, that means tapping into partners — either alone or in combination — that provide access to databases covering both bank and nonbank systems. This capability provides a fuller view into the overall marketplace, significantly lessening their risk profile.
CEO at Ingo Money
Table of Contents
- EDITOR’S LETTER
PYMNTS’ Thought Leadership Team on consumers’ preferences and habits regarding money mobility and how FinTechs and neobanks can respond to those needs
- FEATURE STORY
An interview with Sharon Kean, global expansion senior product director for money transfer FinTech Wise, about how the firm works to navigate dissimilar financial schemes across the globe and manage risk to make cross-border transfers happen faster
Insights from Drew Edwards, CEO at Ingo Money, on the challenges and opportunities facing FinTechs and neobanks in managing the money-in side of the money mobility equation
- NEWS AND TRENDS
The latest headlines from around the money mobility space, including employees’ growing demand for immediate payment options in the face of economic uncertainty and SMBs’ continuing struggle with late ad hoc payments
- PYMNTS INTELLIGENCE
An in-depth look at consumers’ habits and preferences when opening and funding new accounts, whether traditional or digital-first
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