Internal Audit in the payments industry

Digital payments trends, amplified

As COVID-19 continues to affect the globe, consumers are transitioning away from using cash, favoring online or contactless payment methods. In contrast to cash, digital wallets and contactless methods are perceived as safer during a pandemic, accelerating a preexisting trend toward the adoption of digital payment methods. Payments companies have taken notice and are capitalizing on the trend to expand their footprint into new markets and geographies.

But the accelerated shift to digital payments within the context of COVID-19 further complicates risks posed to financial technology (fintech) firms, payments processing companies, and their consumers. So how can Internal Audit (AI) teams enact positive change in the payments industry? An understanding of the dynamic environment, both internal and external, is critical for driving value and enabling internal audit shops to provide assurance, advise the business on risk management practices, and anticipate evolving risks.

Thrive amid strict payments regulations

How can your organization be successful in the future of the payments industry? When operating in multiple highly regulated environments, it’s crucial for payments companies to establish a dynamic and scalable control environment to support compliance. A dynamic control environment is a leading practice for managing risks in a global technology architecture and ensuring that sensitive data, such as personally identifiable information and transaction data, is well guarded. It’s beneficial to build a digital-first control environment by using tools such as robotic process automation and automated digital controls.

It’s also important for Internal Audit to have a seat at the table during the process, providing real-time risk insights and acting as a risk adviser to the business and compliance. Companies can look to innovative approaches to risk mitigation and compliance by leveraging technology to create and test digital controls that increase productivity and reduce risk in a cost-efficient manner.

Move toward the future of payments with confidence

Internal Audit teams in the payments industry can be more strategic and effective in meeting their objectives with help from Deloitte’s Risk & Financial Advisory’s Payments group. It provides advisory and internal audit assistance to companies that offer innovative payments solutions to consumers and small businesses.

Our team includes industry veterans and former regulators who bring firsthand knowledge and experience with regard to risk management, compliance, and internal audit to payments companies. We bring deep industry knowledge and resources to advise our clients and can assist in design operationalization, staff augmentation, and data analytics testing support related to their dynamic business needs.

If you’d like to talk more about digital payments trends, regulations, and how your organization can succeed in the next normal, let’s set up a conversation.