Ann: Central Bank of Ireland Update, page-226

Technology is moving quickly and so AML/KYC should develop as well. EML has already boosted investment in these areas as well as increasing Compliance staff almost 100%. Its not as if you cant have robust AML/KYX processes that tracks customers with multiple cards with loaded cash that looks dodgy. Do we really think multi currency travel cards will be banned forever? Or that Governments will start sending out stimulus cash in cheques?

It also seems that a big CIB gripe was Board composition of PFS so more independent Irish directors being added. Simple governance fix but more fixed cost.

If you read through the last earnings transcript they have stopped new products while they have sorted out the CIB and PFS was showing good organic growth. If they reduce the limits (eg why does anyone need a $100K cash card?) then it wont impact profit that much. If they stop new product lines then the more lucrative account opening fees etc will be impacted. Nevertheless we shall see what is eventually brought to bear- its like a dance with the CIB at the moment. EML did say they hadnt seen any defections from existing customers as of yet. I cant imagine its CIBs intention to destroy fintech or payments firms operating in Ireland. And noting of course that the up to $100m earnout now for PFS is off the cards as well as expected synergies and the end of negative interest rates in the EU which is smashing margin on their float which are long term tailwinds.

Over the medium term- im more excited by the endless opportunities of Open Banking, A2A real time transaction processing, and expanding EML from not just the spend side but also the income side, leveraging their existing product lines with their acquired businesses. Will be a blip in the road over the medium term if they can sort this PFS stuff out and execute on the long term strategy and a good time for a long term entry noting I have topped up at these levels.