The video game sector and associated services (such as online gaming platforms, microtransactions and subscription services) are booming in Europe. With billions of euros generated every year, gaming is a key driver of the digital economy. However, despite this rapid growth, players in this field face an often complex relationship with institutional banks.
The Gaming Sector: An Economic Pillar Under Surveillance
In Europe, the gaming industry generates massive revenues through daily online transactions – be they in-game purchases, subscriptions or access to premium services. However, this dynamism is accompanied by considerable challenges when it comes to establishing solid banking relationships.
Institutional banks, often perceived as conservative, see the gaming sector as a high-risk market. But why this caution when the gaming sector is prospering?
Challenges for Gaming Merchants Facing Institutional Banks
1. Distrust of high-risk sectors
Gaming microtransactions are often very small but frequent, and particularly prone to fraud and chargebacks. This entails additional management costs for banks, which may be reluctant to enter into financial relationships with this type of player. What’s more, some banks fear that games involving virtual currencies could be used as money-laundering tools, fuelling their caution.
2. Strict Compliance Requirements
Gaming merchants must comply with strict regulatory requirements, including anti-money laundering (AML) and data protection (RGPD). Banks, keen to comply with these rules themselves, are asking gaming companies to provide documented policies such as KYC (Know Your Customer) and transaction monitoring processes. For many of these companies, often young or growing, setting up such systems can seem costly and complex.
3. Confusion between gaming and gambling
Although video gaming is distinct from online gambling or betting, the historical association between these two sectors can sometimes confuse banks’ perceptions. Gaming services are sometimes lumped together with gambling, a strictly controlled sector. This confusion can complicate banking relations for gaming companies, especially those offering virtual currency purchases.
Compliance-Edge: A Solution to the Challenges of Compliance
It’s against this backdrop that Compliance-Edge has positioned itself as a key partner to help gaming businesses navigate this complex environment. We offer comprehensive solutions to help merchants comply with bank and regulator requirements while strengthening their risk management.
1. Customized Compliance Documentation
At Compliance-Edge, we support high-risk companies in the creation of their compliance documentation, which is essential to meet bank expectations. Our services include the production of KYC policies, anti-money laundering (AML) policies and transaction monitoring policies, all designed specifically for the needs of high-risk merchants.
By producing these documents, we enable companies to demonstrate their commitment to compliance and risk management, which can significantly improve their relationship with banks.
2. Reinforcing banking and regulatory confidence
With robust compliance systems in place, gaming services can not only reduce their risk of fraud, but also boost the confidence of banks and regulators. This makes it easier for them to access essential banking services, such as payment and funds management solutions.
Conclusion: Valuable support
As a fast-growing sector, gaming faces unique challenges in building strong relationships with banks. Compliance-Edge is positioned as a strategic partner to support these companies in the creation of their compliance documentation, facilitating their interactions with financial institutions.
Thanks to our expertise, companies in high-risk sectors can focus on their core business while being assured that their compliance policies are up to date and aligned with regulatory requirements. We offer a proactive solution to ensure sustainable growth and effective banking partnerships.
