SKN | UK Banks Pursue Payment Independence While Italian Regulatory Scrutiny Intensifies: Implications for HNWI Cross-Border Strategy

Key Takeaways:

• UK banks are developing alternatives to Mastercard and Visa, reflecting strategic moves to reduce reliance on global payment networks and enhance transaction discretion.
• Italian prosecutors have launched an investigation into BFF Bank for alleged false accounting, highlighting the importance of regulatory vigilance and reputational risk management in Europe.
• Swiss-based HNWI should assess counterparty exposure, cross-border operational continuity, and the integration of alternative payment and banking channels into multi-jurisdictional portfolios.

UK banks are advancing initiatives to establish proprietary payment networks as a strategic countermeasure to rising transaction costs and operational dependencies on global card operators. At the same time, Italian authorities have intensified oversight of European banking with a probe into BFF Bank, signaling heightened regulatory scrutiny. For Swiss HNWI, these developments underscore the critical importance of evaluating exposure to counterparties, optimizing cross-border transaction efficiency, and safeguarding capital through prudent operational structures.

Payment Independence: Strategic Shifts in the UK Banking Sector

Major UK banks are moving toward proprietary or consortium-driven payment solutions to reduce reliance on Mastercard and Visa. Rising interchange fees, technological dependencies, and geopolitical sensitivities have amplified the incentive to develop in-house networks. For HNWI clients, the emergence of alternative payment channels offers both strategic flexibility and reduced visibility risks in cross-border financial operations. Wealth managers should evaluate the integration of these networks within multi-currency and multi-jurisdiction portfolios to ensure seamless transaction flows and operational continuity.

These initiatives may also influence treasury management and liquidity planning for clients with global exposure. Early adoption could provide advantages in cost efficiency, speed of settlement, and discreet capital movement, while non-aligned portfolios risk delayed adaptation to evolving infrastructure and higher operational friction.

Italian Regulatory Developments: BFF Bank Under Investigation

The investigation into BFF Bank for alleged accounting irregularities illustrates the persistent regulatory pressures in European financial markets. While the direct financial impact on Swiss-based HNWI may be limited, reputational and operational consequences can extend to cross-border arrangements, particularly in structured lending, corporate services, and asset-backed transactions.

This underscores the necessity of proactive due diligence when engaging European banking partners. High-net-worth investors should prioritize counterparty transparency, reporting accuracy, and compliance robustness, ensuring that regulatory actions do not indirectly compromise liquidity, operational integrity, or long-term wealth preservation.

Cross-Border Implications for Swiss-Based HNWI

For entrepreneurs, C-suite executives, and globally mobile families, these developments highlight the importance of strategic foresight in banking and payments. Capital preservation depends on understanding counterparties’ exposure to regulatory, operational, and network risks. Discretion and efficiency can be optimized by leveraging emerging payment alternatives while maintaining multi-jurisdictional oversight.

Legacy planning also benefits from aligning banking partners with strong governance and operational continuity, mitigating risks that could affect intergenerational wealth transfer. Active engagement with senior advisors to monitor regulatory, technological, and market developments ensures portfolios remain resilient against both transactional and reputational challenges.

Outlook: Navigating Banking and Payments Risk

HNWI should monitor the evolution of UK alternative payment initiatives and European regulatory enforcement closely. Understanding how these trends intersect with Swiss banking structures will be critical for maintaining liquidity, discretion, and operational efficiency. Adapting treasury operations, assessing counterparty risk, and integrating alternative channels into cross-border portfolios are essential steps to safeguard assets and optimize strategic flexibility.

For a confidential discussion regarding your cross-border banking structure, risk management, and payment strategies, contact our senior advisory team.