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.
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."