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Episode Summary
In the latest episode of Wrestling Payments, host Joe Casali and guests Dennis Walker and Stephen Dillon engage in a candid conversation about the complex world of third-party sender relationships in the realm of banking and ACH payments. Drawing from their extensive experience in the industry, Dennis and Stephen share valuable insights and practical wisdom that can help financial institutions navigate this intricate landscape effectively.
The discussion kicks off with an exploration of the key factors that define third-party sender relationships. Dennis and Stephen highlight that understanding and educating the entire workforce within a financial institution is paramount. They stress the importance of being proactive in risk management, recognizing red flags, and implementing preventive measures to maintain the integrity of ACH transactions.
Throughout the conversation, they emphasize the significance of regular annual reviews and check-ins with customers, especially the larger ones. These reviews serve as a crucial opportunity to assess any material changes in a customer's business, their sophistication level, and their evolving risk profile. By staying engaged and informed, financial institutions can adapt their risk management strategies to meet the evolving needs of their customers effectively.
Guest-at-a-Glance
Names:
Stephen Dillon, APRP, AAP, CTP , Eastern Bank
Dennis Walker, CIA, CISA, CRCM, CFSA, CRMA
Noteworthy: Stephen Dillon boasts a career in banking and treasury services, with a keen understanding of the intricacies of ACH payments and risk management. / Dennis Walker possesses a diverse background in banking and financial services, bringing extensive experience and knowledge to the discussion on third-party sender relationships.
Key Insights
Proactive Approaches to Spotting Third-Party Senders in Banking
Dennis and Stephen discuss strategies for identifying third-party senders in the banking industry. They highlight the importance of keyword analysis, company name checks, and reviewing client portfolios to spot potential third-party senders. Additionally, they stress the need to leverage annual reviews and customer engagement to stay vigilant in risk management.
Balancing Risk Mitigation and Customer Engagement with Third-Party Senders
Dennis, Stephen, and Joe underscore the significance of robust risk management practices and consistent customer engagement in dealing with third-party senders. They emphasize conducting risk assessments, due diligence, and maintaining open communication with clients. These practices help banks and financial institutions safeguard their interests and build trust with customers.
Deciphering the Gray Areas: Classifying Third-Party Senders in Banking
Stephen and Joe explore the complexity of classifying entities as third-party senders in the banking sector. They dive into scenarios where the distinction may not be straightforward, particularly in cases involving common ownership or management. The discussion highlights the need for institutions to make informed decisions and apply due diligence when determining third-party sender status.
