Many banks in the electronic funds transfer industry are making the mistake of willfully delaying their preparations for pending remittance regulation.
Boston, August 22, 2012 – A new report from Aite Group summarizes the requirements of Section 1073 of the Dodd-Frank Act, which aims to provide consumers with transparency into the costs and timeliness of making remittance transfers, discusses bank and vendor requirement response options, illustrates bank strategies surrounding the matter, and outlines select vendor solutions that support the requirements.
The response of bankers to new regulations, including Section 1073 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, tends to be one of the following: willing embrace (seldom), reluctant acceptance, rallying battle cry, or complete and willful avoidance. Like the ostrich that nominally buries its head in the sand, bankers who futilely ignore regulations, hoping they will go away, are making a big mistake. Waiting until the November 2012 election is over to address Dodd-Frank 1073 requirements, which take effect on February 7, 2013, is tantamount to such an action. Unfortunately, many banks in the electronic funds transfer industry are doing exactly that.
“While many industry constituents still believe that the requirements of Dodd-Frank 1073 are unrealistic and want regulators to make more changes, taking a wait-and-see approach is not advisable,” says Nancy Atkinson, senior analyst with Aite Group and author of this report. “A number of technology vendors express frustration that their banking clients have yet to identify their vendor expectations. While vendors may want to act, they need guidance from their customer base. To implement such changes by February 2013, vendors indicate that user acceptance testing should be in the works now.”
The report references technology solutions available from ACI Worldwide, Clear2Pay, Dovetail, Earthport, Fundtech, Jack Henry & Associates, The Clearing House, and SWIFT.
This 25-page Impact Note contains two figures and seven tables. Clients of Aite Group’s Wholesale Banking or Retail Banking service can download the report.