How many groups liaising with the regulator?
I am aware of a metaphorical itch but I am trying to avoid scratching it, is it now the time to give in to that itch? I have resisted so far but does scratching the itch make it more delicious or simply inflame the irritant?
My irritant concerns the number of different associations representing the payment service industry, causing duplication of effort and a less effective representative voice when communicating with the financial regulator.
I have read numerous articles from representatives of various payment industry associations documenting their interactions with the the regulator in response to the temporary revoking of the Wirecard UK FCA licence, the subsequent lifting of the restrictions and the impact on businesses within the payments industry.
I believe that the strategy of these associations should be to achieve strength NOT dominance. Many fintech companies find that there are several groups that they could join, although in practice every association is competing against each other for members. Currently, the benefits of membership have to be positively sold and the associations have to provide services which members will value and are adequate enough to attract new members.
This leads me to consider three questions, Is competition between numerous associations within the payments sector regarded as a bad or negative thing? Does this create a duplication of effort and a less effective representative voice? Is it better to have a single association that has the full support of the industry so that the representative function can be performed effectively?
To be effective any association must work with the UK and EU regulators. I appreciate that at the European level the process can be slow with proposals often taking years from discussion to implementation so they need to be effective at engaging with policy makers and other key stakeholders whilst putting forward the collective position of their members, generally to government departments, agencies and regulators.
My itch relates to all sectors within the payments industry, not just those with the loudest voices. I believe what is needed is for the representation to be strengthened, not lost in the background noise where the regulators receive the same information presented in different structures that compete for their attention.
