A new report indicates that bankers are sour about the upcoming implementation of Dodd-Frank 1073, a new regulation that is intended to increase transparency for customers making cross-border payments. The report, released today by Fundtech, a global banking transactions company, found that nearly 90% of bankers expect Dodd-Frank 1073 to have a negative impact on their payments business. And the majority of bankers surveyed (52%) said that they did not think that the regulation would deliver the intended benefits to consumers. Only 2% of the respondents expected the regulation to deliver those benefits.
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The doubt that bankers have in the effectiveness of the regulation can be demonstrated by the rule that banks will have to give customers 30 minutes to cancel a cross-border payment. Although bankers will have to adjust policies and operations to comply with this rule, only 2% of the banks surveyed by Fundtech report that customers frequently rescind orders. Of those banks that kept track of those cancellation requests, 43% said that they had never had a customer ask to cancel a cross-border payment before.
"Our own research [finds] that 50% [of banks] believe it will have an extremely negative impact on their payments business," Nancy Atkinson, a senior analyst at research firm Aite Group, said of the regulation in a statement released by Fundtech. "Banks will need to determine the importance of international electronic fund transfers to their businesses and how they will provide these services."
