Page 32 - gs260202

Insights and Expertise

The illusion of simply adding more methods from the outset. Retrospective legal review and system
redesign under time pressure is far from ideal,
A frequent reaction to handling such complications is to
add more payment and banking solutions, hoping it will International companies have to treat payment and
sort out the issue. However, nothing could be further from banking as the base infrastructure that supports the entire
the truth. Payment and banking today impact customer organization. All growth plans have to align with the
experience, risk management, technology, product banks' and providers' subjective criteria , which change
development, data security, compliance, finance and more. all the time: new tools are born, regulations change and
It should be considered a standalone function, an essential tech is changing.
element of the business strategy, not just a part of finance.
Payments and banking planning is complementary to the
Fintech is innovating with extraordinary speed, but Treasury function; it does not replace it. Chief payment
expecting an external provider or bank, whose revenue officers work at the intersection of multiple departments
is directly linked to processed volume, to deliver fully and monitor regulatory updates, fintech innovations,
independent guidance that is fully aligned with the long sanctions lists, best practices, and technology in alignment
term organizational strategy is not realistic. with the business, rather than reacting to issues. They can
differentiate issues and opportunities between domestic
All private companies' commercial models are built around and cross-border activities, allowing corrective action
growth and revenue, not around protecting their clients' before provider risk teams intervene.
structure. They all promise efficiency and profitability,
yet the responsibility of selecting and integrating these The future
tools still remains with the business. Unfortunately,
today many businesses are considering the issues only International businesses can only be successful if they
on a surface level, while the underlying legal exposure, understand that payment and banking planning is not
regulatory obligations, capital flow restrictions and an afterthought but a strategic discipline. Cross-border
various international risk appetites remain unaddressed. growth is about designing the financial arteries of the
organization in advance and then building operations
The untold risk of payment orchestration around it, in line with regulation, correspondent banking
expectations, customer preferences, sanctions, liquidity
Another growing illusion is that payment orchestration planning, technology, data security, various taxation
platforms replace strategy, because many teams assume environments and risk appetite.
that layering orchestration on top of existing providers
will automatically resolve all issues. The chief payment officer function is becoming more
common within international setups for obvious reasons:
In reality, orchestration only optimizes routing between this role works on extremely rare skills between legal,
multiple acquirers, reporting and fraud handling, product, risk, technology, customer experience and finance,
but it is entirely separate from all other aspects of the while ensuring that payment and banking decisions are
organization's requirements such as legal structuring, aligned with the company's long term objectives.
regulatory interpretation, sanctions exposure, capital
control management, correspondent banking expectations, A chief payment officer continuously evaluates the ever-
risk, data security, integration issues and more. evolving fintech market and taxation changes, sources
new providers, monitors regulatory changes, understands
An orchestration layer does not renegotiate your fees or risk and technology, and sets the right expectations for
terms and conditions, nor does it determine the right risk international growth. In today's global environment,
appetite or conduct due diligence on new payment and strategizing payment and banking is foundational to
banking partners. Without a solid payment and banking sustainable international growth. Tools are only as good
strategy underneath, orchestration simply accelerates as we know how to use them
volume through the same structural weaknesses rather
than correcting them.
Viktoria Soltesz is the CEO and founder of PSP Angels and The Soltesz
Planning as the first step Institute. She is a leading advocate for strategy-led financial operations,
ethical industry practices, and structured education in an area too often
When payment and banking decisions are outsourced overlooked in traditional business training. PSP Angels is a globally
without strategic ownership, the merchant becomes
reactive instead of proactive, and the expansion that was awarded, independent payment and banking consultancy that has sup-
meant to generate growth slowly turns into operational ported over 1,000 companies in building scalable, secure financial infra-
firefighting driven by other people's commercial structures. The Soltesz Institute is the first and only independent online
incentives rather than by the company's own risk and organization offering EU-accredited training and certifications focused
governance standards. All adjustments made after launch exclusively on payments and banking. To contact Viktoria, please email
carry significantly higher financial and operational costs viktoria@pspangels.com.
and risks, compared to designing the structure correctly
32