Tagged: Services Toggle Comment Threads | Keyboard Shortcuts
We will not argue about whose banking system is the best in the world. There are different factors to consider for each market, so that it is difficult to establish a ranking. (In addition, it would be a boring task.) But consider the following question. Given the present rate ofRead More
During this week’s #Smart #Contracts Symposium in NYC, 250 attendees—including members of the #blockchain-trading group the Chamber of Digital Commerce—listened as the potential benefits of the #technology were laid out, from securing property titles, to gold ownership. Symposium speakers, presenters, and panelists demonstrated and debated all of the possible useRead More
Der paneuropäische Zahlungsdienstleisterin SIX #Payment #Services und Chinas Vorreiter für mobiles Zahlen – Alipay – reagieren auf einen Trend im Einzelhandel und erschliessen für Händler das Potenzial von Millionen von Neukunden. Nutzer der beliebten chinesischen Bezahl- App #Alipay werden demnächst ihre Zahlungen in ganz Europa an den Zahlterminals von SIX abwickeln können.
SIX Payment Services und Alipay, die von der Ant Financial Services Group betriebene Zahlungs- und Lifestyle-Plattform, gaben heute ihre enge Zusammenarbeit im Bereich von POS- und E-Commerce- Zahlungen in Europa bekannt. Die Vereinbarung sieht vor, dass der Zahlungsdienst von Alipay in die Zahlungsapplikationen von SIX integriert wird, sodass die Händler von SIX Zahlungen der Alipay-Nutzer über Alipay akzeptieren können.
Enormes Potenzial für Händler in Europa
Die Händler profitieren seit einigen Jahren vom Zustrom der chinesischen Touristen, welche allein 2015 292 Mrd. US-Dollar ausgegeben haben. Der Höhepunkt dieses Trends ist noch nicht absehbar. Millionen von chinesischen Touristen dürften in den nächsten Jahren Europa besuchen. Die spezifischen Zahlungsanforderungen chinesischer Kunden berücksichtigen zu können, kann sich als Alleinstellungsmerkmal für Händler im Einzelhandel und Hospitality-Bereich erweisen.
Alipay ist der führende Zahlungsdienst in China, dem über 450 Millionen Nutzer angeschlossen sind und der bei mobilen Zahlungen über einen Marktanteil von 80% verfügt. Alipay-Kunden sind gewöhnlich technologieaffin und bevorzugen ihr Mobiltelefon für die rasche und einfache Abwicklung von Zahlungen.
SIX und Alipay beabsichtigen zudem, den Händlern Mehrwertdienste zu bieten und den Fokus auf die Unterstützung des Marketings und die Kundenaktivierung im Zielsegment zu legen. Alipay hat ihre Global Lifestyle Plattform bereits in der Alipay-App integriert, um Einzelhändler und Kunden zusammenzubringen.
Rita Liu, Head of Alipay Europe, sagt: «Dank der Zusammenarbeit mit SIX erhält Alipay Zugang zu einem breiten Händlernetz in Europa: Die Alipay-Nutzer werden voraussichtlich bei über 110 000 zusätzlichen Händlern in der Schweiz und anderswo bezahlen können. Als unsere bevorzugte Partnerin unterstützt uns SIX dabei, Alipay zu einem wirklich global akzeptierten Zahlungsdienst weiterzuentwickeln.»
SIX Payment Services verfügt über 220 000 Händler als Kunden und ist in der Schweiz, Luxemburg, Österreich, Deutschland und vielen weiteren europäischen Ländern vertreten.
Jürg Weber, Division CEO SIX Payment Services, dazu: «SIX will die beste Partnerin für Händler sein. Mit der Aufnahme von Alipay in unser Portfolio kommen wir diesem Ziel einen Schritt näher. Unsere Strategie zielt darauf ab, alle Arten von Zahlungen zu verarbeiten, und Alipay als schnell wachsende Zahlungsplattform gehört unbedingt in unser Portfolio. Chinesische Touristen wollen mit ihrer etablierten Bezahllösung auch bei Händlern in Europa zahlen können. SIX freut sich, diese Zahlungsart demnächst anzubieten.»
The post SIX Payment Services spannt mit Alipay zusammen appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
If you take a survey of people on the street to name a #franchise, not only will you probably get a 100% response, but you will also probably get the same response from the vast majority of individuals. That response being a certain fast food outlet that has golden archesRead More
Even though the #digital 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 #technology 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.
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 #financial #services industry did not immediately espouse these #waves, nor did it find itself materially impacted by them, or at least it appears so to the naked eye. For example, #banks 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 #fintech 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 #blockchain was harmed while writing this post.
#Financial #Services accounts for 10% of GDP and 5% of employment in #Switzerland 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 #Fintech). I mean #radical in the positiveRead More
Filialen bilden die traditionelle Schnittstelle zwischen Banken und ihren Kunden. Im Zuge der Digitalisierung der Wirtschaft und der mobilen #Services haben sich die Erwartungen an und die Nutzung von Filialen durch die Bankkunden grundlegend verändert. FinTechs und zunehmend auch Banken stellen sich auf diese Veränderungen ein.
Bonitätsrechner, SocialSentiment-basierte Investmentvorschläge und crowdbasierte Portfoliogenerierung sind einige Beispiele neuer Technologien und Lösungen an der Kundenschnittstelle, bei denen FinTechs und Banken um Kunden und Ertragsströme konkurrieren. Viele Banken tun sich schwer, mit den neuen Anforderungen umzugehen und die Opportunitäten, welche sich durch die Digitalisierung ergeben, zu ihren Gunsten zu nutzen. Sie sehen sich einer Vielfalt von Innovationen gegenüber, die in hoher Geschwindigkeit alle Schnittstellen mit den Kunden erfassen.
Von Banken wird plötzlich erwartet, dass sie agil werden und hohe technologische, organisatorische und auch kulturelle Anpassungsfähigkeit beweisen. Doch wo geht die Reise hin und wie schätzen die Banken selbst die Relevanz dieser vielfältigen Neuerungen ein? Diese Frage ist Fokus der vorliegenden Studie und untersucht den Status quo von elektronisch erbrachten Services an der Kundenschnittstelle von Retailbanken.
Initiatoren der Studie sind e-foresight, der ForschungsThink Tank für Digital #Banking der Swisscom AG und das Business Engineering Institute St. Gallen mit dem Kompetenzzentrum Sourcing in der Finanzindustrie (CC Sourcing) an den Instituten für Wirtschaftsinformatik der Universitäten St. Gallen und Leipzig
Download the full study here
The post Fintech Services im Retail Banking appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
The Payment Services Directive (PSD) was initially adopted by the European Union (EU) in 2007 and aimed at providing a legal framework for all payments made in the region with the purpose of making these faster, more efficient and easier to use for European consumers and payments services providers.
PSD2: What is it?
PSD2 is a major policy development expected to impact the payments industry across Europe through: further standardization and interoperability of cards, Internet and mobile payments methods; the reduction of barriers to entry in particular for card and Internet payments providers, driving thus increased competition, innovation and transparency across the European payments market; as well as providing the necessary legal platform for the Single Euro Payments Area (SEPA).
The directive seeks to improve the existing EU rules for electronic payments, while taking into account emerging innovative payment services, such as Internet and mobile payments. It sets out rules concerning:
- Strict security requirements for electronic payments and the protection of consumers’ financial data, guaranteeing safe authentication and reducing the risk of fraud;
- The transparency of conditions and information requirements for payment services;
- The rights and obligations of users and providers of payment services.
The regulation came into effect on January 12, 2016, and EU countries must incorporate it into national law by January 13, 2018.
The new directive brings key changes that include:
Third-party payment initiation: Payment Initiation Service Providers (PISP) will be able to initiate online payments from the payer&8217;s bank account. This will encourage competition in the European payments industry. Accenture estimates PISP services could account for up to 16% of online retail payments by 2020.
The definition of a “payment institution” is extended to new types and categories of players. While the original PSD applied only to transactions occurring within the EU, the PSD2 will extend this scope to &8220;one leg out&8221; transactions.
Third-party account access: The directive will regulate account information service providers (AISPs). These providers act as aggregators of customer payment account information.
Prohibition of card surcharges: The regulation seeks to standardize the different approaches to surcharges on card-based transactions across the EU.
Security of online payments and account access through the introduction of new security requirements for electronic payments and account access, along with new security challenges relating to AISPs and PISPs.
The directive will affect everyone in the shifting payment landscape. This includes #banks, fintechs, the PCI (Payment Card Industry) as well as merchants.
PSD2 will bring both challenges and opportunities for European banks. Banks will be required to open up their infrastructure to third parties by offering APIs under the XS2A (access to account) rule. They will be forced to grant them access to their customers&8217; online account/payment services in a regulated and secure way.
On the other hand, PSD2 presents significant opportunities to grow new revenue streams &8211; by facilitating and monetizing access to raw data and banking services, for instance &8211;, capture customer ownership and process toward an extended ecosystem centered on the &8220;Everyday Bank,&8221; a concept that takes banking to being trusted, indispensable and central to consumers&8217; everyday activities.
Featured image: Mobile banking concept by Ditty_about_summer, via Shutterstock.com.