Company: New Market Entrant – US Co-Brand & Branded
Challenge:
A fintech was planning to enter the affinity credit card business in the United States but needed to create a compliance infrastructure – including identifying and hiring a compliance team — to support its efforts. There was no off-the-shelf template it could use that would apply to prospective affinity partners, regulators, and auditors so it needed an experienced team that would help it prepare for the many audits and requests for documentation it would be receiving.
PAG Solution:
PAG deployed a three-stage approach starting with building out more than 50 business line-specific policies and supporting procedures to govern regulatory expectations and to support ongoing call center operations. From there, PAG documented technical requirements to help the client’s engineers program the regulatory requirements and controls directly into the proprietary card system. PAG then built user test cases and performed user acceptance testing to ensure all programmed controls were working as intended. PAG also supplied the client with a highly qualified Chief Compliance Officer to help guide its internal efforts, hiring practices, and to represent it in meetings with prospects, regulators, auditors, and its sponsor bank.
Client Benefits:
- PAG successfully built out a complete Compliance Management System within three months that enabled the client to successfully pass multiple prospective partner audits, leading to several profitable affinity relationships.
- PAG’s staff allowed the client to focus on its system engineering efforts while saving time, money, and resources on needed Compliance activities.
- PAG assisted the client in establishing its own internal Compliance Department to replace the work we were doing by interviewing prospective employees and training them to be successful.
- Successfully passed a regulatory audit after only one year in practice — with zero significant findings or MRA’s.
