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  • @fintechna 3:35 am on November 23, 2016 Permalink | Reply
    Tags: “meaningless”, Demographic, financial, , , , , ,   

    Research reveals Millennial Demographic “meaningless” for Financial Institutions and FinTechs 

    New has found that the millennials classification is not a meaningful way for and to understand those aged between 18 and 34.

    The findings suggest that younger and older millennials have divergent financial priorities, exhibit disparate financial behaviours, especially around digital finance, and have different tolerance levels for customer experience issues. Financial services providers need to re-evaluate how they market to and serve this .

    Research reveals Millennial Demographic “meaningless” for Financial Institutions and FinTechs fintechThe research ‘Misunderstood Millennials: Have financial institutions got it wrong?’ commissioned by Mitek, surveyed 1001 UK millennials and found that younger millennials – aged 18-22 – are not yet financially independent, with 47.6% most concerned about paying for education. Younger millennials’ financial mindset is also dominated by a reactive, short- term focus demonstrated by their other main concerns, paying rent (43%) and entertainment (33%). Long-term financial planning is not on their agendas, contrary to received wisdom evidenced by the plethora of educational start-ups.

    It’s only when millennials reach 29-34 that financial services become a necessity. 43.1% of 29-34 year old are most concerned with saving to buy a house but only 30% of young people are. Surprisingly, 40% of 29-34 year-old are also looking to save money for travel and 33% with saving for their retirement, compared to 26% and 17% respectively for those aged 18-22. Between 23 and 28, millennials are not yet financially independent and around a third are still concerned about paying for education. At this age, only 23% are concerned about saving for their retirement.

    Research reveals Millennial Demographic “meaningless” for Financial Institutions and FinTechs fintech

    Financial services companies are increasingly serving their customers through mobile channels and 29-34 year-olds are certainly receptive to this. Older millennials are, on average, 5% more likely to use mobile financial services than their younger counterparts with one in five making a mobile purchase at least once a day. However, security concerns are preventing 29-34 year olds from taking full advantage of mobile with 88.5% saying that worries about ID fraud or data security prevent them from making transactions on their mobile, compared to 72.8% of younger millennials.

    Research reveals Millennial Demographic “meaningless” for Financial Institutions and FinTechs fintechThe research also found that, counterintuitively, those in the older age bracket are much more comfortable using the camera on their mobile, with 72.7% seeing it as one of the most important functions. This is compared to 54% of 18-22 year olds. This is also manifested in the fact that older millennials are 25% more likely to allay their security fears by using their camera to fill in personal information or verify their identity with a selfie or a photo of their ID.

    Getting the mobile experience right, however, is key. Millennials are highly intolerant of poor mobile experiences with 56.3% stating that if they were unable to sign up for a financial product on their mobile, they would go to a different, more mobile-friendly competitor. Indeed 42.4% of all millennials have already switched providers because of a poor mobile experience.

    Key Findings

    Financial Independence
    · 47.6% of millennials aged 18-22 are concerned about paying for education, whereas only 19.4% of 29-34 year-olds were.
    · 43.1% of older millennials are concerned about saving to buy a house but only 30% of younger people are.
    · Around 40% of 29-34 year-olds are also looking to save money for travel and 33% with saving for their retirement, compared to 26% and 17% respectively

    Mobile usage
    · Older millennials are 5% more likely to use their phones to apply for services or purchase goods than younger millennials
    · One in five millennials aged 29-34 make at least one purchase on their mobile per day, compared to 12.4% of millennials aged 18-22

    Research reveals Millennial Demographic “meaningless” for Financial Institutions and FinTechs fintechSecurity and Fraud
    · 88.5% of older millennials say that worries about ID fraud or data security prevent them from making transactions on their mobile, compared to 72.8% of younger millennials
    · 87.4% of younger millennials cite convenience factors as a barrier to usage compared to 79.9% of older millennials
    · Older millennials are around 25% more likely to use their camera to fill in personal information or verify their identity using a selfie or a photo of their ID document


    Mobile User Experience
    · 56.3% of all millennials would abandon an application for a financial services product if they could not complete it on their mobile and would join a more mobile-friendly competitor
    · 42.4% of millennials have left a financial services provider due to a poor mobile experience

    “Millennials have been the target of financial services providers for as long as they have been recognised as a category. However to date, efforts to attract them have largely been unsuccessful” said Sarah Clark, General Manager, Identity, Mitek. “The reasons for this are now clear. By trying to appeal to this group as one single demographic, financial institutions’ marketing has been misdirected. They now have the opportunity to focus their efforts more sharply and cater for millennials’ diverse needs at different stages in their lives. It can’t be a one-size-fits-all approach anymore. Financial institutions need to tailor their offering to appeal to the lucrative 29-34 year-old market, which is mobile-first, concerned about the security of their identity and willing to disengage due to poor service. ”

    Research reveals Millennial Demographic “meaningless” for Financial Institutions and FinTechs fintech

    With impending regulations such as Anti-Money Laundering Directive 4.1, Payments Service Directive Two and the EU’s Funds Transfer Regulation, there is pressure on financial institutions to improve KYC practices. Electronic identity verification and on-boarding reduces the risk of financial fraud and improves operational efficiencies. Institutions not only need to cater to the demands of this generation and ensure they are best positioned to meet the regulatory requirements of today and tomorrow.

    The research was conducted by Osterman Research and covered 1001 UK millennials. Download it here.


    Featured Image Credit: By Optician Training via Flickr

    The post Research reveals Millennial Demographic “meaningless” for Financial Institutions and FinTechs appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

    Fintech Schweiz Digital Finance News – FintechNewsCH

  • @fintechna 4:54 am on November 21, 2016 Permalink | Reply
    Tags: , , , , , , , financial, , , , Waves   

    Digital Waves & Financial Services 

    Even though the age finds its root in the 1950s with the rise of computers, we had to wait until the mid 1990s and the rise of the internet to witness a first wave of tectonic shifts and the creation of what many defined as the New Economy. Innovation, characterized by the application of to productive means and resulting in driving down costs relentlessly over time, was hard at work. This first wave did not escape the rule and we saw the cost of &;discovery&; plummeting. By discovery I mean the ability to find any type of data. Google benefitted from this trend and built an empire based on hyper efficient search. We also benefitted from another wave that saw the cost of &8220;communication&8221; dropping and the rise of various forms of connecting between humans. Facebook can be viewed at the intersection of discovery and human connections. Apple benefited from the connection/communication wave. Finally, Amazon mined the decreasing cost of discovery in the e-commerce field.

    Digital Waves & Financial Services fintech

    More recently, we have benefitted from the wave of &8220;personalization&8221; where a myriad of applications have unbundled past needs, uncovered needs we did not know we had, or disintermediated needs that were poorly serviced. Again, this wave resulted in the cost of personalization plummeting.

    Crucially whenever costs plummet, demand grows in both expected and unexpected ways. The New Economy and our demand have certainly exploded.

    It is interesting to observe that the industry did not immediately espouse these , nor did it find itself materially impacted by them, or at least it appears so to the naked eye. For example, were not particularly diligent in their internet banking efforts at that time. Even though new technology companies won the early stages of the New Economy and even though the financial services industry did not register any &8220;win&8221;, we also can categorically state that banks or insurance companies did not lose. They still command, to this date, market share and dominance in all five sectors  &; lending, capital markets, insurance, asset management, payments &8211; in every geography.

    The movement, in its first two phases, the &8220;direct to consumer&8221; phase and, once that first phase failed, the &8220;partnership pivot&8221; phase were essentially driven by the necessity to play catch and for the financial services industry to capture the lower costs of &8220;discovery&8221; and of &8220;connecting&8221; with users. Much needs to be done as most participants have not completed their digital journey. Even though startups and incumbents alike are still mostly focused on digitizing front end processes &8211; on-boarding, distribution, sales, underwriting amongst others &8211; we have now seen a broadening of the digitization movement towards middle and back office processes.

    Still this has not resulted yet in a dramatic lowering of costs in financial services and an increase in demand. To be clear, the cost of lending will never &8220;decrease&8221; below an incompressible cost of capital. The cost of delivering a loan should decrease, and in other sectors, the cost of of a payment (be it domestic, p2p, mobile, cross border, b2b) has yet to decrease across the board.

    Meanwhile, the technology world is busy reinventing itself and as the waves of discovery, communication, connection and personalization are flattening, new waves are engulfing us. I will focus on two technologies which I believe are the leading candidates to usher the next wave &8211; again characterized by reduced costs and demand explosion: Artificial Intelligence and AR/VR

    Artificial Intelligence holds the promise of bringing our decision making to the next level. Any of the AI vectors &8211; machine learning, deep learning, nlp/nlg/nlu to name a few &8211; will drive down the cost of &8220;decisioning&8221;. By decisioning I mean the ability to arrive at optimal decisions via superior analysis of mountains of disparate data and in the absence of clarity. Most technology companies are locked in an epic arms race hiring the right talent, developing their own AI tech stacks and applying their technology breakthroughs to their fast evolving business models. The next wave may indeed see the rise of cognitive enterprises and cognitively enhanced individuals.

    AR/VR holds the promise bringing our interaction with the world to the next level. I understand there are differences between AR and VR and for the purpose of this post will assume them away. AR/VR will drive down the cost of &8220;immersive discovery&8221;. By immersive discovery I mean discovery in action, using the full capabilities of our bodies in movement, in our three dimensional world;  as opposed to the discovery we have done to date from behind a laptop or a smartphone. Given the explosion of supply and demand ushered by the plummeting cost of &8220;discovery&8221;, I leave you to imagine what this wave may be able to bring about.

    Although it seems AI holds a slight edge over AR/VR currently based on maturity and traction, I do not definitively know which wave will be dominant first at scale, either in the enterprise or retail world. Suffice it to say that either wave will pose unique challenges to the financial services industry. Challenges inherent to customizing, designing, implementing and integrating each new technology paradigm. Challenges inherent in making use of and making sense of these new technologies with the right human skills. Finally, competitive challenges in the face of what we can only assume will be renewed pressure from non financial services enterprises ever more willing to capture poorly defended margins in lending or payments.

    Although  threats from fintech startups or tech companies have not been successful in eroding meaningful market share yet, many industry analysts believe that up to half and sometimes more of incumbents&; revenues are under threat. I believe this analysis does not fully include the implications of the lower cost of &8220;decisioning&8221; or &8220;immersive discovery&8221;. As such financial institutions may be under even more threat than we realize.

    Be that as it may, a reasonable and well educated practitioner will healthily push back and raise two objections to the demise of financial institutions at the hand of the potential dislocating effects of the above digital waves. One is articulated around regulation, the other around core systems.

    Regulation is tedious, complicated and costly and serves as a defensive moat. In some instances it can be a drag as financial incumbents cannot act as flexibly or nimbly as non-regulated entities. Still, regulation acts as an effective digital fire retardant. Regtech not only holds the promise of lowering the cost of compliance, it also holds the promise of lowering the cost of developing and disseminating regulation to the market. Should regtech lower the cost of compliance to such an extent that fintech startups become more competitive or non-regulated tech companies become less averse to regulation, then regulated financial institutions will come out weakened, all else being constant. I am not predicting this will happen, yet the likelihood should not be discounted altogether

    Core systems in the market today are cumbersome, expensive to build, expensive to maintain. Even though financial institutions &8211; banks or insurers alike &8211; dislike their vendors with the intensity of a thousand suns due to the woeful inability current core systems exhibit operating in a digital world, the fact is not everyone can afford core systems. Imagine a world where the cost of building, provisioning or deploying a core system would plummet and you are one step closer to another incumbent competitive advantage vanishing.

    Although the future of regtech and core systems is more difficult to predict than a presidential election, the trends clearly point towards cost and complexity reduction and even though the full effects of either the lower cost of &8220;immersed discovery&8221; or &8220;decisioning&8221; are still be be felt, they cannot be avoided. These new digital waves hold the potential to drastically lower the cost and complexity of &8220;building a bank&8221; or &8220;building an insurance company&8221;. Obviously, regulatory capital, liquidity and solvency issues will still hold, but picture a world where building a core stack will be as easy as building a web site and where the cost will be a fraction of what it is now &8211; to the dismay of the entire value chain of third parties currently feasting on any implementation, from consultants to systems integrators &8211; and you can start grasp the monumental changes afoot. Digital waves keep coming and most financial institutions are still standing. How will they respond to the coming waves is an important question to ask. How will incumbent service providers cope is equally intriguing. How fintech startups exploit gaps will be fascinating to witness.

    ps: no was harmed while writing this post.


  • @fintechna 3:35 pm on November 18, 2016 Permalink | Reply
    Tags: , , , , , financial, , , , Participants,   

    87% of Financial Market Participants Say Blockchain Will Disrupt The Industry 

    A survey conducted by Deutsche Bank and FT Remark, the research arm of the Times, found that a staggering majority (87%) of financial are confident that will the settlement model for securities.

    62% believe that the introduction of distributed ledger technology will produce substantial savings ranging from 11% to 25%. Almost half say that it will help the cope with the risk of system failure and market disruption.

    87 of Financial Market Participants Say Blockchain Will Disrupt The Industry fintech

    &;Blockchain may completely change the settlement model for securities processing, creating a utility around securities processing and cash management,&; commented David Rhydderch, Deutsche Bank&;s head of alternative fund services.

    &8220;The entire back end would become a far more efficient, far less costly, more accurate and less risk-prone function. This has an obvious knock-on effect on the cost of service provision. In the administration space, blockchain may not be quite the disruptor. It’s more in the functional utility elements within the securities processing settlement chain. In that context, it may be totally revolutionary.&8221;

    Respondents believe that blockchain technology will be widely used within the next three to six years (75%).

    87 of Financial Market Participants Say Blockchain Will Disrupt The Industry fintech

    The industry is still struggling to figure out how to implement the technology in the current web of legacy infrastructure, the report says, noting that market participants are trying to determine how it can be deployed in a way that works, given ongoing data protection and security concerns.

    The document a previous report released earlier this year by Euroclear and Oliver Wyman which praised the merits of blockchain technology in capital markets and highlighted the potential of the technology to provide a new approach to data management and be a solution to many of the efficiencies afflicting capital markets.

    87 of Financial Market Participants Say Blockchain Will Disrupt The Industry fintechThe Deutsche Bank report, titled &8220;Powering the flow of global capital: Capital markets investor insights,&8221; highlights the key findings of a survey of 200 market participants to examine what is driving today&8217;s capital market.

    The research found that regulation, new technologies and emerging markets are key issues impacting strategic thinking. These three areas have caused the vast majority of respondents to partially or completely reshape their operating models, buying behavior and capital/fund allocations over the past two years.

    &8220;These three themes are fundamentally redefining the securities services landscape and the knock-on effects will impact the business models of many capital markets participants,&8221; according to Satvinder Singh, head of global securities services and head of GTB EMEA ex Germany.

    Notably, a majority of market participants are convinced of a revival of emerging markets. 54% believe emerging markets will deliver growth rates close to those seen during the 2001-2011 boom, noting that India and South Asia will likely be the most attractive region (88%).

    87 of Financial Market Participants Say Blockchain Will Disrupt The Industry fintech

    China, Indonesia, Russia and Turkey in particular are ranked highest for their capital market infrastructure. Respondents said that China and India have made the greatest infrastructure improvements during the last five years.

    That being said, investing in emerging markets remains risky and some investors are hesitant.

    Respondents ranked regulatory hurdles as their greatest or second greatest challenge (62%) when carrying out securities transactions in emerging markets, followed by political interference (53%) and instability as a challenge, and unreliable capital markets infrastructure (40%).


    Featured image: Stock market chart by bluebay via Shutterstock.com.

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    Fintech Schweiz Digital Finance News – FintechNewsCH

  • @fintechna 12:19 pm on November 16, 2016 Permalink | Reply
    Tags: , , financial, , , ,   

    The radical change coming to Financial Services; Fintech in Switzerland 

    accounts for 10% of GDP and 5% of employment in and the country is a global leader in Wealth Management. So, what happens here really matters and what is happening is earth-shattering (and we normally avoid hyperbolic language on Daily ).  I mean in the positiveRead More
    Bank Innovation

  • @fintechna 3:35 pm on November 15, 2016 Permalink | Reply
    Tags: , , CyberFraud, financial, , , , Prevention, , Unveiled    

    The Next Generation of Financial Cyber-Fraud Prevention is Unveiled  

    CyberRein, a cyber-security company has announced the launch of Assayer, a cyber-fraud software. Targeted at , Assayer uniquely stops criminals deceiving a bank’s existing defences.

    The Next Generation of Financial Cyber-Fraud Prevention is Unveiled  fintech

    Assayer is set to transform cyber-fraud . Banks existing defences prevent impersonation allowing criminals time to learn how to deceive and plan an attack. Assayer takes away this time, meaning criminals no-longer have months, but milliseconds to plan their attacks. This is ground-breaking and is due to Assayer’s multi-patented Transaction Cloaking that constantly mutates and creates impossible puzzles that criminals must solve to be able to deceive defences.

    Assayer’s mutating deception shields are a step-change for banks because they never protect transactions the same way twice. Therefore, anything criminals do learn instantly becomes useless a split-second later, including how to successfully use stolen credentials and biometrics &; or even how to deceive Assayer itself.

    The Next Generation of Financial Cyber-Fraud Prevention is Unveiled  fintech

    Sat Birdi

    “Banks aren’t losing the cyber-fraud battle because their defences are weak, but because criminals have too long to learn how to defeat them, which is why banking has a $ 100B cyber-fraud problem each year, despite using best-in-class defences. Assayer’s mutating defences eliminate this fundamental vulnerability of time, so criminals can’t learn how to deceive a bank’s defences in the first place,” said Sat Birdi, CEO of CyberRein.

    “Assayer allows any bank to finally stop cyber-fraud, not because it prevents it through detection, but because its mutating deception shields never protect transactions the same way twice and cloak a bank and its customers in a way that criminals can’t solve. Assayer’s defence technology is very powerful, because it now allows banks to finally prevent the root cause of all cyber-fraud, the knowledge required to succeed &8211; and the implications are profound and far-reaching”. 

    As well as cloaking the transactions, Assayer does not affect the bank’s current defences and encompasses them into its deception shields, securing all channels and touchpoints against impersonation, the pre-cursor to all successful cyber-fraud. Assayer will protect anything that is placed within its deception shield and instantly means that a bank’s existing cyber-security investments are future-proofed. The bank’s current defences and customers are not aware that they are being protected – there is no interference, downloads and ultimately no successful cyber-fraud.

    The Next Generation of Financial Cyber-Fraud Prevention is Unveiled  fintech


    Sat continued, “We live in a truly compromised world where criminals are always waiting for the next opportunity to defraud banks and their customers. At CyberRein, we can eliminate that threat and headache for eBanking executives, and make banking online safer for everyone. Consumers are increasingly asking their banks to do more to protect them, and through Assayer, we are giving the community the chance to do exactly that.

    The CyberRein team has over 30 years of expertise in cyber-security and enterprise business solutions delivery, making us a very knowledgeable partner to work with. Our research and technology has taken over four years to complete, because we realised that the problem of cyber-fraud prevention needed a whole new approach to bolster banking’s existing defences, and we’re very excited to be leading the way with the development of this new technology.”

    The post The Next Generation of Financial Cyber-Fraud Prevention is Unveiled  appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

    Fintech Schweiz Digital Finance News – FintechNewsCH

  • @fintechna 12:18 am on November 7, 2016 Permalink | Reply
    Tags: , , , financial, , ,   

    How can technology help enable financial inclusion? 

    Currently more than 2 billion adults worldwide &; mostly poor and disproportionately women &8212; lack access to formal services. A&;

    Continue reading on Hacking Finance &187;

    Bank Innovation

  • @fintechna 12:40 am on October 6, 2016 Permalink | Reply
    Tags: , Born, financial, , , Switzerland's   

    How Switzerland’s First Financial Markets Blockchain Was Born 

    A prototype currently being developed by Six Securities provides one of the examples of how FMIs are investigating .


    How Switzerlands First Financial Markets Blockchain Was Born fintech

  • @fintechna 6:00 am on October 2, 2016 Permalink | Reply
    Tags: , financial, , ux   

    Differentiation, and Disruption, through Design 

    Differentiation, and Disruption, through Design fintech

    plays a vital role in shaping the world we live in; from the objects around us to the services we consume daily.

    With increasing competition for mindshare, design is often the only differentiator for elevating a product or service from an otherwise crowded market. Small wonder, then, that a growing number of companies are turning to design in their continuous fight for relevance and growth.

    However, design and creativity don’t always sit comfortably with conventional business doctrine. The discovery process that precedes great design requires that rules be broken – which usually means mistakes, and these can be perceived as wasteful failures rather than the byproduct of healthy innovation. Businesses of this mindset tend to treat design as an afterthought; often just dressing up products with a last minute costume and therefore foregoing its full potential, which is often immeasurably greater.

    Design is a potent catalyst for sparking innovation and maintaining growth, yet it must be ingrained in the core of the business and given time to produce results. The perpetual journey of discovery and learning requires empathy for users, patience, and commitment – so that the end product is efficient, effective, and desirable.

    At FastFin, we believe in the power of great design in everything we do. We’ve observed that successful products result from a deliberate, well-rehearsed process that places users at the center of design thinking – drawing on domain knowledge, cutting-edge , and agile delivery methods.

    We’ve been fortunate to work with visionaries at global firms who share our passion for great design, and look forward to working with others who seek differentiation – and disruption – through design.

    is Co-founder, FastFin and this post was originally published here: http://fastfin.co/differentiation-and-disruption-through-design/

  • @fintechna 6:40 am on September 23, 2016 Permalink | Reply
    Tags: , , financial, , , Mature, , Urge   

    China’s Financial Firms Urge Regulators to Help Mature Blockchain 

    major institutions believe governance should not be replaced in any larger transitions to .


    Chinas Financial Firms Urge Regulators to Help Mature Blockchain fintech

  • @fintechna 3:35 am on September 23, 2016 Permalink | Reply
    Tags: , , , financial, , , , , , , ,   

    Distributed Ledger Technology For Swiss Financial Market From SIX Securities Services & Digital Asset 

    SIX Securities Services, the post-trade infrastructure operator for the sector, and Digital Asset Holdings, a developer of for the financial industry, announced plans to develop a proof of concept that will demonstrate the commercial viability of distributed ledger technology across the Swiss financial , with an initial prototype for . The two firms will also develop a roadmap for future opportunities spanning the whole market infrastructure value chain.

    SIX Services recognizes the potential of distributed ledger technology and after a competitive evaluation process has selected as the business and technology partner for the design of a solution for the Swiss market. The initial phase of the project will demonstrate the ability to build and incorporate distributed, encrypted, straight through processing tools into existing securities transaction flows, and propose a roadmap for extending this to a production-ready service.

    The proof of concept will extend beyond the scope of the prototype, and Digital Asset will develop a product roadmap for future opportunities to include a wide range of applications that demonstrate how current, segregated processes could be streamlined and made more efficient for SIX Securities Services and post-trade ecosystem as a whole.

    SIX Securities Services has already made significant strides in exploring distributed ledger technologies and currently has a prototype for Corporate Actions processing on display at Sibos, in Geneva 26-29 September, 2016.

    Distributed Ledger Technology For Swiss Financial Market From SIX Securities Services & Digital Asset fintech


    According to Thomas Zeeb, Division CEO SIX Securities Services: «Distributed ledger technology and its potential role in post trading is key to our business. We need to understand it, and more importantly, its applicability and future flexibility in order to keep ahead of the game. Partnering with Digital Asset is a way to accelerate our own development plans and leverage their experience in this area.»

    «Partnering with SIX brings this cutting edge technology another step closer to commercial reality,” said Blythe Masters, CEO of Digital Asset. “We believe this collaboration will provide exciting opportunities for SIX and its customers while reducing inefficiency, cost and risk in the financial services ecosystem.»

    The post Distributed Ledger Technology For Swiss Financial Market From SIX Securities Services &038; Digital Asset appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

    Fintech Schweiz Digital Finance News – FintechNewsCH

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