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  • @fintechna 3:35 am on July 22, 2018 Permalink | Reply
    Tags: 7500c0, , , , , , , ,   

    APIs: An enabler for transformation in financial services 

    Guest blogger Conrad Sheehan shines a light on the emergence of as innovation drivers.

    The adoption of powerful, open application programming interfaces (APIs) provides an opportunity to shape product innovation and partnerships across , particularly in the payments industry.

    APIs are the connectors, making it possible for producers, consumers, products and services to connect and create value. , payment service providers, fintechs, and other financial services-related companies are using them to expose business data, functionality and services to the outside world—stretching beyond their customary internal borders to create broader, unique business partnerships. It is how financial institutions are beginning to establish themselves as an integral part of a full, rich ecosystem. Indeed, APIs represent new opportunities to enable and accelerate of financial services in highly efficient ways to deliver enhanced customer experiences.

    Figure 1: How APIs work
    APIs: An enabler for transformation in financial services fintech
    Source: Accenture

    Both regulation and market demand around the globe are influencing and shaping perspectives of Open Banking API product innovation in local markets. The European Union’s revised Payment Services Directive (PSD2), for example, is one of the most notable acts of regulation that aims at nurturing innovation, competition and data sharing in ways that better serve customers. PSD2 sparked similar legislative action in Australia and Hong Kong to create an open environment for their financial services markets. In the US, NACHA’s API Standardization Industry Group is an example of a market-driven initiative focused on defining API standards in payments. The ability of APIs to enable payments players to deliver more valuable, customer-focused payments experiences and find engaging ways to offer true value beyond the transaction itself continues to fuel demand across the digital ecosystem.

    I was delighted to participate recently in a panel discussion at SWIFT’s Latin America Regional Conference 2018. When polled about API enablement, 70 percent of the audience indicated that their organizations are using APIs. The audience also shared about the areas that APIs are helping facilitate: internal (25 percent), third-party integration (18 percent), and business flows (8 percent); nearly half (49 percent) answered “all”. The results further highlight that APIs have evolved from back office to front office and are enablers of third-party partnerships. Panel participants articulated that it is essential to start with strategy, and while organizations are competing, that there is a need for standards. The discussion also emphasized the importance of being mindful of trust, security and data protection as well as learning from initiatives around the globe in markets such as Asia that are leading innovation. Throughout the conference, there were other discussions about APIs such as SWIFT global payments innovation, which has APIs for banks to integrate the payment tracker into their channels. There are countless examples of APIs as products emerging from Open Banking and as propriety offerings across financial services.

    We see five key benefits of APIs as building blocks for the transformation of payments and financial services overall:

    • Productization. In the increasingly open financial services industry, an API is more than simply a means to access back-end services. It is a product in and of itself that providers can monetize and set as a foundation for other new services.
    • Collaboration. Some of the most popular (and profitable) uses of APIs result from third-party developers working together and creating apps that define new markets and create new revenue streams.
    • Enabling “API First”. For a digital business, it’s all about how you engage with API consumers—providing exactly the data they need, in the format they want to use.
    • Speed to Market. APIs can be provisioned quickly, often with minimal back-end refactoring required.
    • Security. The leading API Gateways have been vetted for security and are compliant in many areas (PCI, HIPAA, etc.) They also offer OAuth and LDAP support.

    As organizations seek to adopt digital business models, they need to ensure that everything and everyone can interact with what they have to offer. It’s no longer just about enabling mobile apps or even embracing the Internet of Things. It’s about having an API-driven ecosystem that can power your digital business and provide stakeholders the information they require in a faster world.

    Read more of our insights on open APIs in Driving the Future of Payments and The Brave New World of Open Banking

     

    APIs: An enabler for transformation in financial services fintechConrad Sheehan,
    Managing Director – Payments

    APIs: An enabler for transformation in financial services fintechAPIs: An enabler for transformation in financial services fintech

     

     

    The post APIs: An enabler for transformation in financial services appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • @fintechna 3:35 am on May 5, 2018 Permalink | Reply
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    Banks: We need to talk 

    Forget mobile apps— to start talking to customers

    As part of our guest blog series, Accenture Nordic Banking Practice Lead Satu Pulkkinen explores how banks can take the next step in evolving customer relations. 

    First came online and mobile banks, with Nordic banks leading the way. The next wave of digital banking? The conversational bank that operates within messaging applications. that can see and hear us, continuously growing ecosystems around increasingly popular messaging applications, as well as the amazing progress of artificial intelligence (AI), are enabling personalized, fully digital banking assistants that you can to anytime, anyplace.

    Technology is an integral part of our daily lives. Increasingly, devices that used to simply respond to our commands and actions can now also hear and see us. We use mobile applications for almost everything, especially instant messaging. Since the beginning of 2015, WhatsApp, Facebook Messenger, Snapchat and WeChat have become the world&8217;s most used social media applications.

    Over 60 percent of customers prefer messaging applications over email or phone calls. And we are moving on from using several different mobile applications to services that are integrated within ecosystems of those applications.

    Towards digital assistants with human understanding

    The development of artificial intelligence (AI) technologies, like machine learning and deep learning, has progressed at such a pace that the chatbots many Nordic banks use today are already starting to look outdated. As AI technologies continue to mature, bots will become even more human-like.

    The increased volume of data and number of analytic tools create the possibility of offering individualized digital services on a mass scale. This has already led us as customers to expect each digital interaction to be as good as our best last experience—regardless of the brand or industry in question.

    The result is a bank that can talk

    Conversational banking exploits these technology trends in an intelligent way. Banking bots within messaging applications and virtual assistants (like Apple&;s Siri or Google Assistant) connect cost savings brought by the previous generation’s online and mobile banks, with the personal touch previously provided by bank clerks.

    Banks: We need to talk fintech
    Read the report

    What is behind all this progress? Talking is natural for people. Complex language and communication separate humans from other animal species. Stories form the cornerstones of civilizations. Talking is, therefore, genetically encoded in all of us.

    In much the same way, messaging applications are natural to current mobile devices. These applications are easy and funand effortless to use, even on the move. We can type or speak and we can hold one- or two-way, personal or group conversations.

    Therefore, brands have rushed to embrace messaging applications. For example, Facebook Messenger has over 33,000 bots offering customer assistance and counseling as well as providing interactive experiences. And we seem to like them: over 60 percent of consumers use messaging applications to communicate with brands.

    Paying the bills or looking for investment tips—all accessible from your couch just by using your voice

    For example, in the future, a bank bot could interact like this: &;Hi Satu! I noticed that there’s €100 left over in your bank account. Should we put it in a fund that matches your expected return by only investing in environmentally friendly companies?´´

    Capital One in the US is one of the first financial institutions to move into conversational banking. It offers its customers an opportunity to check their account balances or pay bills just by talking with Amazon&8217;s Alexa—and without once touching a device. The customer just has to link his or her bank account to an Echo device. Once that’s set up, the bank literally obeys the customer’s voice.

    Now it’s time for Nordic banks to move on from online and mobile banking and start talking to customers. Who will be the first?

    Banks: We need to talk fintechSatu Pulkkinen, Nordic Banking Practice lead at Accenture

    Banks: We need to talk fintechBanks: We need to talk fintech Banks: We need to talk fintech

     

    The post Banks: We need to talk appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • @fintechna 3:36 pm on March 1, 2018 Permalink | Reply
    Tags: , 7500c0, , , , , , , remainder,   

    Payments predictions for the remainder of 2018 

    As I step into my new role as Accenture’s global lead, it got me thinking about the constantly evolving industry landscape—and the themes that will play important roles in that evolution the of the year. I’ve divided my selections into three categories: Established Trends, Building Trends and New Trends, though some are applicable to more than one category. Take a look.

    Established Trends

    1. Contactless payments will continue to grow at 100%+ in Europe—expect more than 40bn transactions, all told.
    2. Cash will experience an accelerated decline across Europe. Expect fewer than 1.8bn ATM withdrawals in the UK (which peaked at 2.9 bn in 2012).
    3. Real-time payments will grow quickly where they have been established for many years. Faster Payments volumes in the UK will exceed 2bn transactions.
    4. Mobile wallet payments such as Apple Pay and Samsung will experience strong growth.

    Building Trends

    1. Propositions using PSD2-compliant APIs will appear gradually. Expect bank and applications such as account aggregation to appear in the first half, followed by retailer applications in the second half.
    2. Infrastructure renewal programmes will appear around the world, for real-time domestic payments and RTGS wholesale payments.
    3. Real-time payments adoption in Europe will be slow. While a large number of will implement the required and connect to new real-time central infrastructures, volumes will remain low until at least 2019.
    4. Some banks will start building cloud payment solutions as an alternative to on-premise technology.
    5. Request-to-pay as an invoicing and payment method will emerge as a proposition in several countries.
    6. Mobile wallets from China, already accepted by many retailers in Europe for Chinese nationals, will take advantage of PSD2 account access to launch services targeted at Europeans.
    7. Wearables for payments will start proliferating with new devices and fashion accessories.
    8. Although most banks will still shun , expect to see cash management products appear aimed at corporate treasurers using Bitcoin and Ethereum.
    9. Ethereum will grow rapidly in popularity; its market cap will exceed Bitcoin by year’s end.
    10. Ripple’s network for cross-border transactions will grow significantly, attracting more banks and corporates, which will lead to rising transaction volume.

    New Trends

    1. The consumer experience for payments will become a battleground for banks, especially around authentication for PSD2 on third-party applications.
    2. Challenger bank adoption will be much higher than in the past due to their superior customer experience for payments.
    3. Biometrics such as facial, voice and hand-movement recognition, now robust enough for mass use, will be adopted by banks and fintechs as a weapon in the consumer experience battle, and also for securing wallets.
    4. Retailer wallets for both ecommerce and in-store payments will start appearing in sectors such as supermarkets, fuel and quick-service restaurants, emulating the success of Starbucks and Walmart, and focused on a slick checkout process using biometrics.
    5. Retailers will start demanding new payment methods for recurring payments for subscription- and credit-based services.
    6. Fintechs and banks will see the importance of linking credit and payments. Expect to see this as an emerging theme in payments innovation.
    7. Voice-activated payments will start appearing as Google Home, Alexa, Cortina, Siri, etc. grow in popularity.
    8. Central banks around the world will warm to the idea of issuing their fiat currency on distributed ledger technology—and at least one will have concrete plans to implement the technology.
    9. As banks adopt real-time payments in economies such as Australia, Europe and the US, new capabilities will emerge to operate in real time, for example, corporate cash management solutions for real-time cross-border payments, virtual accounts and fraud innovation.

    I welcome your thoughts on these —and encourage you to share your own. Thanks for reading!

    The post Payments predictions for the remainder of 2018 appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
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