Finologee’s Digitising Finance Recipes Conference #3 Recap: Risk management in business & institutional payments
On 13 November 2024, industry experts gathered at Mama Shelter at Kirchberg for Finologee’s third Digitising Finance Recipes conference. The event brought together key figures from organisations like LuxTrust, Spuerkeess, ABBL, Hagen Advisory, Up Luxembourg and the Luxembourg Association of Corporate Treasurers (ATEL) to discuss the evolving landscape of payments risk management. Through panels, case studies and expert talks, the conference addressed pressing issues such as regulatory compliance, cybersecurity and balancing operational efficiency with robust security practices, while also offering practical insights into the future of risk management in payments.
Jonathan Prince, CSO of Finologee, opened the event, welcoming participants to an afternoon of collaborative discussion on how to approach payments risk management in an increasingly regulated and digitised world.
Following the opening, David Hagen, Independent Non-Executive Director and ICT Advisor at Hagen Advisory, provided an overview of regulators’ approach to payments risk management. He highlighted recent payment trends and risks, mitigation strategies as well as challenges, noting that:
“Regulators only intervene when the financial risks become too important.”
Scroll through the gallery to discover the insightful slides shared by David Hagen:
Jonathan Prince, CSO and Co-founder of Finologee, shared actionable insights on mitigating payment risks, supported by case studies from the LYNKS platform, Finologee’s banks and accounts management platform. He demonstrated how clients achieved streamlined compliance workflows through robust features such as counterparty risk assessment, flexible signature rule management, payment pre-validation and transaction audit log. These tools not only reduced operational costs and time but also significantly enhanced risk detection capabilities.
Jonathan Prince remarked: “Digitising workflows is a game-changer in risk mitigation, and centralising these processes allows our clients to catch red flags faster and more efficiently“
Video demonstrations with the LYNKS platform, as projected at the event:
The panel discussion that followed provided deeper insights into some of the most critical areas of payments risk management today, with a strong focus on challenges, upcoming evolutions and recommendations for the audience. Moderated by Finologee’s Raoul Mulheims, the panel featured insights from Alicia Brun of Up Luxembourg, François Masquelier of ATEL, Serge Wagener of Spuerkeess and Fabrice Aresu of LuxTrust.
One of the first main concerns raised was the increasing sophistication of social engineering attacks, which target individual employees as entry points into financial systems. Serge Wagener highlighted that while technical defenses are critical, they are insufficient alone:
“Generally speaking, the human factor remains the biggest security vulnerability. Continuous training and awareness are essential to counter this risk.“
Alicia Brun added that educating employees and partners on recognising and reacting to such attacks must be an integral part of any security strategy.
The discussion moved to the balancing act between compliance and operational efficiency. Fabrice Aresu spoke on the costs associated with cybersecurity and professional liability insurance, which continue to rise due to the growing risk environment:
“With fewer insurance companies covering cyber risks, businesses have no choice but to invest more in direct mitigation strategies.”
François Masquelier expressed concern that compliance measures could potentially disrupt payment processes if they are too rigid. He warned:
“When compliance demands become overwhelming, businesses may be tempted to cut corners—leading to riskier practices”
The panel also discussed upcoming regulatory changes, including the anticipated PSD3 and PSR, which place greater responsibility on banks and payment service providers for fraud detection and accountability.
Serge Wagener pointed out that this shift not only requires increased vigilance but also demands that institutions implement more rigorous processes to prove compliance. François Masquelier explored the impact of instant payments, emphasising that while the immediacy of these transactions can increase risk, new features like verification of payee (VOP) will help mitigate these risks for corporates. As he then explained:
“There is a delicate balance between the speed customers expect and the level of security we must maintain,“
Left to right: Alicia Brun, François Masquelier, Jerry Grbic, Serge Wagener and Fabrice Aresu
Finally, the panel reflected on the sustainability of payment costs amid growing compliance requirements. Alicia Brun recommended that employees, merchants and employers stay vigilant against evolving fraud tactics, suggesting targeted training and robust protocols to safeguard transactions at every level.
Additionally, Fabrice Aresu further insisted that all of us should stay vigilant when it comes to fraud: it is not only the stereotypical age or socioeconomic groups that are the main victims, but studies show that more often than not fraud victims tend to be highly educated and digitally literate.
The conference concluded with closing remarks from Jerry Grbic, CEO of the Luxembourg Bankers’ Association (ABBL). He emphasised the critical role of collaboration in navigating the evolving payments landscape, stating:
“No institution can tackle these challenges alone. It is only through sharing knowledge, developing innovative solutions and working together that we can build a resilient financial ecosystem.“
He encouraged participants to continue engaging with peers and regulatory bodies to ensure that their risk management strategies remain adaptable and future-focused.
The event wrapped up with a networking session, where attendees exchanged ideas and insights in an informal setting, reinforcing the importance of community and shared knowledge in tackling today’s payments risk challenges.
