Post the regulatory clapmdown on Paytm Payments Bank, several banks have tightened the complaince and due-diligence process on their fintech partnerships to ensure there are no regulatory lapses.
Yes Bank’s chief also said that fintech partnerships play a key role in aiding growth and reaching people.
The chief executive officer of Yes Bank Prashant Kumar has said that the compliance process and due-diligence checks have become tighter on fintech partnerships after Reserve Bank of India’s regulatory clampdown on Paytm Payments Bank.
“Earlier our focus was more on what we are doing, the nature of partnerships that we are getting into and whether we are complainant, however now we are seeing what our partners are doing, checking their customers as well. This takes a lot of effort but the cost of non-compliance is even higher than the cost of compliance,” said Kumar at a media briefing in Bengaluru on February 28th.
He also added that while there is a “ tick-box approach” for checking compliance the process now has extended beyond just a background check on the fintech that gets into the bank’s partnership to now checking their customers as well.
Global Fintech Alliance