Thredd Rolls Out Compliance and Risk Management Tools

Payments processor Thredd introduced a suite of compliance and risk management services.

The new offerings are designed to help FinTechs, program managers and their bank sponsors address heightened concerns about risk and compliance, according to a Wednesday (Oct. 30) press release.

“Across the globe, the dialogue about compliance and risk has changed, and it has become increasingly challenging for emerging FinTechs and bank sponsors to keep pace,” Thredd CEO Jim McCarthy said in the release. “We’re responding by meeting clients where they are by being equally committed to the back office as we are to global transaction processing.”

The suite combines several interrelated services and new oversight controls typically not offered in one place, per the release.

Among the capabilities and features are fraud transaction monitoring powered by Featurespace, 24/7 card payment fraud transaction monitoring, and scam monitoring to help identify authorized push payments fraud, according to the release.

“In addition, these new services are designed with global passporting in mind, supporting clients and their local sponsors in simplifying and accelerating their entry to new geographies,” the news release said.

Speaking to PYMNTS in April, McCarthy emphasized the importance of risk management and compliance in an environment marked by increased regulatory oversight, especially in areas like anti-money laundering (AML) and know your customer/know your business (KYC/KYB) protocols.

“There’s a real focus on risk and compliance, and that is necessary,” he said. “It’s hygiene. But there was a lot of fast growth across banking and FinTech without a focus on that.”

For PYMNTS What’s Next in Payments series on embedded finance, McCarthy told PYMNTS this month that embedded options presented to consumers are still clunky in many cases, feeling more like email spam than a useful financial tool.

“Context is important, and how you plug into the context that you [as a firm] are serving is very important,” he said.

Sounding a word of caution as to the modern state of embedded finance, McCarthy said: “In some ways, we’re moving backwards, unfortunately, because of risk and fraud and regulations.”

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