What central bank payments leaders told us about the barriers to cross-bank fraud data sharing.
At the Central Bank Payments Conference (CBPC) in Istanbul, 39 central bankers and payment operators ranked what stops banks in their market sharing fraud data. The answer wasn’t money or technology.
This paper, written by Salv, Cifas, the Finance Latvia Association and Currency Research, sets out what they said and what the markets that solved it actually did.
Three takeaways
- The barriers are governance. Legal uncertainty and reluctance to share with competitors came out effectively tied at the top. Cost ranked last, and nobody named funding as the first need.
- The room expects central banks to lead. Half of respondents named the central bank as the convener, with banking associations second.
- It has been done. The UK has shared fraud data through Cifas for about 40 years. Latvia built a legal route in a strict banking-secrecy market. The paper includes Latvia’s case study and five steps for central bankers.
