Preparing for the Future of Payments Compliance | AutoRek | FF News at Money20/20 USA

Preparing for the future of payments compliance.

In our latest interview from Money20/20 Las Vegas, we caught up with Nick Botha, from AutoRek, who explores the fast-evolving payments landscape and the critical need for automated reconciliation. 

In today’s high-volume payments environment, many legacy stacks just won’t cut it. And with rising regulatory demands, particularly in the UK and Canada, and predicted shifts in the US, the imperative to prepare has never been greater. Watch the video to find out more. 

Addressing Growing Reconciliation Needs in the Payments Industry

Botha, who is Global Payment Sales Manager at AutoRek, first provides an introduction to AutoRek. We’ve spoken with AutoRek before, so it’s great to see them again and get an update. For the uninitiated, AutoRek has been  a fintech pioneer since 1994, specializing in automated reconciliation software, addressing the needs of financial institutions and payments companies worldwide. They’re perfectly placed to speak on the rapidly evolving payments sector. 

It’s experienced exponential growth in the last decade, with new payment institutions emerging to compete with traditional banks. This expansion has created a significant demand for reconciliation solutions, a sector which is growing in its own right, as payments businesses manage billions of transactions. All too often, reconciliation remains a manual, spreadsheet-reliant process in many companies, creating scalability, accuracy, and compliance issues. AutoRek’s software provides an automated, end-to-end solution designed to handle high transaction volumes, allowing firms to replace outdated, inefficient manual methods with streamlined processes.

Overcoming Legacy System Challenges

Part of the problem is that many financial institutions rely on legacy systems, which complicate their operations and hinder reconciliation efficiency. Botha emphasized the importance of interoperability—ensuring different software systems can work together smoothly. He pointed out that transitioning from outdated technologies like spreadsheets to modern, integrated systems is essential for operational efficiency. New technologies, including AI and machine learning, as well as the adoption of cloud-based solutions and APIs, play a crucial role in creating scalable and flexible tech stacks. According to Botha, the industry’s shift isn’t only about replacing tools but hiring people who understand and can leverage these new systems effectively.

Rising Regulatory Pressures and Safeguarding Requirements

Another huge area that firms need to consider is the increasing regulatory pressures in the UK, Canada, and the US. The UK’s Financial Conduct Authority (FCA) has recently introduced proposals to enhance safeguarding for client funds, drawing from post-2008 regulatory frameworks in asset management. Countries worldwide, such as Singapore, Israel, and Canada, are considering similar regulatory approaches. With recent high-profile fintech failures, there’s growing speculation that US regulators may implement stricter requirements around safeguarding and segregation of client and operational funds. Botha predicts that US firms should prepare for imminent regulatory changes, which will likely require adjustments in how they manage risk, conduct audits, and maintain client fund security.

AutoRek’s Strategic Focus and Vision for the Future

AutoRek is expanding its footprint in the US, responding to the increasing demand for reliable reconciliation solutions. The company has made its first US hires and is actively pursuing new partnerships with industry leaders like Capgemini, Microsoft, and Swift. These collaborations aim to ensure that AutoRek’s technology remains top-tier and adaptable to a wide range of client needs. Looking ahead, Botha sees AutoRek playing a vital role in shaping the payments sector as it adapts to more complex regulatory and operational requirements.

Growing Interest in Reconciliation at Money20/20

Botha points out that AutoRek are not new to Money20/20 and highlighted a shift at the world renowned conference, noting that companies are now approaching AutoRek with specific reconciliation needs rather than general inquiries. This reflects a broader industry recognition of the operational cost and complexity of payments. As companies focus less on front-office enhancements and more on operational efficiency, reconciliation is emerging as a strategic priority. Botha expressed optimism about AutoRek’s growth potential over the next year, buoyed by increasing demand for sophisticated reconciliation solutions in the US market. 

Nick Botha’s insights underscore the transformative impact reconciliation can have on the payments sector. For more great interviews from Money20/20 check out the dedicated page on our website.