Regulate In Haste, Repent At Leisure, Bank Lobbyists Warned

In light of The Clearing House (TCH), a 153 year-old banking association and payments company, pushing legislators to address gaps in data security practices of alternative payment providers (APPs) in a recent white paper, Mark Taylor from PaymentsCompliance spoke to several industry thought leaders, including DWT’s Andy Lorentz, to get perspective on the issue.

The paper seems to be backward facing; looking to apply pervasive regulation to the innovators and disruptors rather than finding a new ground or basis for regulation going forward,” noted Andy. “I think my point of view is this is much more likely to chill useful innovation than it is to help, although the purpose of the paper doesn’t seem to be fostering innovation but rather trying to quiet a perceived competitive challenge.”

To read the rest of the article, including analysis of the challenges created by the integration of the cultures of disruptive technology companies with financial institutions, click here.