British neobank #Monzo has reinstated a popular #feature for its current account, #debit top-ups via card, Android and Apple Pay, but warned customers that the feature may not be “sustainable” for the bank. In a statement on the Monzo blog posted today, the bank noted that it had brought #back the debit top-up feature — […]
Bank Innovation
EXCLUSIVE – #Kiwibank launched a new mobile feature for its business #customers today, joining the list of many other fintechs and #banks that have unveiled similar #merchant-focused apps and features. Today, the New Zealand bank unveiled Kiwibank QuickPay. This mobile solution lets its merchant customers receive “on-the-spot” #payments — peer-to-peer payments in #realtime. The app, […]
Bank Innovation
In “Paradise Lost”, 17th-century English poet John Milton describes two types of warriors: One group are “employed in sporting games and exercises” and “sing in the valleys”, while the other group “rend up both rocks and hills”, “make wild uproar” and “ride the air in whirlwind”.
Milton’s bifurcation also applies to the modern-day #payments industry. With fast-paced disruptive change sweeping the industry, are traditional payment players going through the motions trying to protect their traditional sources of profit or are they willing to be combative and create “wild uproar” by driving radical change?
Consider Accenture’s prediction that in the UK alone there will be between six billion and nine billion contactless card transactions in 2017. Alternative payment mechanisms such as PayPal and iDEAL will continue to grow at 20 to 30 percent a year for e-commerce transactions, driven by convenience and sky-rocketing fraud rates in card-not-present transactions. We estimate that up to 25 percent of banks’ traditional cross-border payments revenue streams are at risk from these innovations. These are just a few of the seemingly endless examples of disruptive change in the payments industry. Traditional payments players are at a crossroad: figure out how to ride this whirlwind to success, or be content to just keep playing the traditional games.
To help #banks make sense of this fast-changing landscape, Accenture has identified ten payments #mega #trends from our 2017 North America Consumer Payments Pulse Survey.
One key trend is banks’ new-found enthusiasm for collaborating with digital consumer-to-business and #fintech partners to both exploit the power of an exponentially growing network and deliver benefits to customers. Tapping into these networks allows payments players to multiply capabilities and extend their reach without building and investing from scratch. One example is Zelle®. This API-enabled network of more than 50 partners, including Ally, Wells Fargo, Bank of America and JPMorgan Chase, offers real-time, person-to-person payments and disbursements through one recognisable brand. According to Zelle, some 85 million consumers can now experience its services through the mobile banking apps of the Zelle Network® participant banks. The app quickly ramped up to $ 33.6 billion in network volumes and 100 million transactions in the first half of 2017. This scale gives participating banks the edge they need to compete effectively with challengers like Venmo from PayPal. Creating and capitalising on network effects require banks to participate in digital ecosystems beyond their own walls and be willing to subsume to some degree their own operating models, cultures and strategies. Just as the payments industry of 50 years ago was energised by the emergence of the credit card networks, we are now seeing a new set of digital networks emerge that also have the power to reshape payments.
Another critical trend driving the #future of payments is the democratisation of payments acceptance. Today, everyone can be a merchant and every device can accept payments, whether you are talking traditional point-of-sale, online or mobile. Enabled by new entrants like Stripe and Square, all it takes is connectivity, a portable card reader or a website to create the next-generation POS. This “payments everywhere” wave that enabled small merchants and peer-to-peer commerce has also created new growth opportunities for payments players; they can address such increasingly attractive markets as large merchant payment margins get more compressed. This democratisation of payments acceptance has also created new opportunities for analytics-based lending and data monetisation strategies, which also offer new and appealing revenue streams for payments players.
These are just two of the ten payments mega trends identified in our recent report, Driving the Future of Payments: 10 Mega Trends, and I encourage you to explore the other eight. Regardless of what type of payments warrior you are, we hope this report can help you ride the whirlwind to the future, as simply singing in the valley is unlikely to be a successful long-term strategy.
The post Ten mega trends that will drive the future of payments appeared first on Accenture Banking Blog.
EXCLUSIVE- PFM app #MoneyLion today launched an #investment #tool called MoneyLion Plus, that aims to #help the average American #save money. “How do you save money? How do you invest? A lot of people don’t,” Tim Hong, MoneyLion chief marketing officer told Bank Innovation. “And that&8217;s not because of lack of intention, but because it’s just […]
Bank Innovation
EXCLUSIVE- It’s a truism that #banks can&8217;t work together, but we live in an age of consortia, where groups of banks get together on things like #blockchain (though, some have said they are more like “blockchain support groups.”😉 #Pivotus Ventures, a wholly owned subsidiary of Umpqua Bank, famous for its highly designed branches and fanatical […]
Bank Innovation
EXCLUSIVE- It’s a truism that #banks can&8217;t work together, but we live in an age of consortia, where groups of banks get together on things like #blockchain (though, some have said they are more like “blockchain support groups.”😉 #Pivotus Ventures, a wholly owned subsidiary of Umpqua Bank, famous for its highly designed branches and fanatical […]
Bank Innovation
EXCLUSIVE – Grow Your Stack is the PFM app developed by MoneyLion in its latest attempt to make finance “fun.” And fun it is. The #feature , which goes live on Tuesday on iOS 11 (the version supported by the newest #iPhone), can be found in the MoneyLion mobile app and allows users to see a visual of […]
Bank Innovation
Online lending service #Upstart #Network has received a “no-action” #letter from the Consumer Financial Protection Bureau, the first such letter to be issued by the regulator, the #CFPB announced yesterday. Upstart Network requested the “no-action” letter. Companies can apply for a no-action letter from the CFPB if they are launching a new financial product. The […]
Bank Innovation
Internet giant #Google will release a mobile #payment service in #India, according to reports. The Unified Payments Interface (UPI) app is called Google Tez, according to The IndianExpress. ‘Tez,’ in Hindi (India&8217;s national language) means fast. The app will be launched as a part of the “Make in India” government initiative, which aims to encourage […]
Bank Innovation
EXCLUSIVE- #LendingTree is negotiating with #Credit #Karma to offer Credit Karma products to LendingTree’s audience. Doug Lebda, chairman and CEO of LendingTree, apparently disclosed the negotiations during a presentation yesterday at Goldman Sachs & Co. headquarters in New York. Lebda reportedly said, “We expect to be #marketing the Credit Karma product very soon.” The move could bring […]
Bank Innovation
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