As telecom companies in North America and around the world expand into financial technology and finance related services (fintech) operations, they face increasing cyber and reputational risks. The diversification into services and partnerships with financial institutions such as mobile money and digital wallets, payment processing and digital money transfers brings both opportunities and challenges.
Understanding the risks
The collection and processing of financial information by telecom companies increases their exposure to cyber risks. The potential consequences of a data breach are severe, including financial loss, regulatory penalties and reputational damage. Unlike banks, telecom companies lack specific regulations governing their fintech operations, making risk management more complex.
Regulatory landscape
Telecom companies must navigate existing regulations applicable to the banking and fintech industries. Risk managers need to understand where these risks sit and manage them according to the relevant regulations. The regulatory landscape may be complex, and telecom companies must address any exposure to these regulations.
