ATM Turns 50 — The Peak Of Financial Innovation, According To Paul Volcker
ATMs, now a routine part of banking services, were revolutionary when first introduced.
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What’s Driving the Return of QR?
Until recently, choosing between NFC payments and QR codes would have been an easy choice. Now, with EMVCo releasing QR code payment specifications, large processors Mastercard and Visa exploring the method for merchant payments, and popular P2P apps like Venmo using the #technology, it seems like the barcode-based system is resurfacing. But what has led […]
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How Apple Pay Cash, Apple’s P2P Service, Will Work
Fall is around the corner and prepaid card issuer Green Dot, which is the regulated bank partner for #Apple Pay, has updates on #Apple’s P2P money transfer #service that will launch in the coming months. In their earnings call for the second quarter ended in June 30, Green Dot CEO Steven Streit updated investors on developments […]
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What banks will want to become: a living business
Winnie-the-Pooh isn’t normally considered a business guru, but it turns out that A.A. Milne had a pretty good grasp on the challenge of digital transformation. “How does one #become a butterfly?’ Pooh asked Piglet in one of the stories. ‘You must #want to fly so much that you are willing to give up being a caterpillar,&8217; Piglet replied. &8216;You mean to die?&8217; asked Pooh. &8216;Yes and no,&8217; Piglet answered. &8216;What looks like you will die, but what&8217;s really you will live on.”
Leaders at many retail and commercial #banks are having similar conversations as they figure out how to win in a digital economy that is beginning to make their old business models look somewhat caterpillar-like. The big banks that succeed in the decade to come will be those willing to transform themselves by shedding the old versions of themselves in favour of something quite different.
The first step for many is to become outstanding Digital Relationship Managers, coupling their traditional strengths with a modern, open model approach to serve a wide range of customer needs and segments. It means having organisational agility and vibrancy that can quickly capitalise on the continuous and personalised stream of data generated by the digitisation of everything to satisfy the customer’s ongoing needs—both financial and non-financial.
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The next step forward for these banks is to think of themselves as a #Living Business in ways that challenge traditional industry boundaries. That transition is about being hyper-relevant and embedding vitality across the organisation to adapt to changing customer needs and behaviour, beyond banking. It’s a transition that is not evolutionary but revolutionary. A bank that is a Living Business is not a better caterpillar, but more akin to a financial services butterfly. To take flight, banks will need to draw on ecosystem partnerships and plug-and-play functionality for all products and services, to refresh services and reinvent business models as fast and as often as needed. “Run the business” will essentially be automatic, while most talent and investment will be aligned against “change the business” activities. Many transactions will come through digital natives, such as Google, Facebook or equivalent multi-use digital platforms. Some transactions will be text-based, but a huge portion of interactions will be voice-based. From within that digital conversation, banks will need to identify the opportunities for a smaller number of higher-value transactions where it seamlessly provides more complex services, such as financial advice to its customers.
While the potential to grow revenue streams that come with Banking as a Living Business are enticing, banks will also have to embrace the more daunting aspects, such as prioritising their customer-oriented initiatives and cutting the caterpillar-improvement programs that do not map to the bank’s future business model.
Must banking as we know it die? Yes and no. Traditional concepts of the bank will die as banking moves from something customers step outside their regular activities to do and to a business that is fully integrated and embedded with the rest of their daily lives.
I join my colleagues at Accenture, Allen International, and Fjord to share further details in our new report, Banking As A Living Business: Driving Hyper-Relevance And Vitality Beyond Industry Boundaries. I invite you to read it as you contemplate what’s ahead for the banking industry.
The post What banks will want to become: a living business appeared first on Accenture Banking Blog.
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Sift Will Give Users Personalized Recommendations on Best Credit Cards
#Sift, an app that helps customers redeem #credit card benefits and files automated claims on its #users’ behalf, is now looking to advise these users on which credit card #best suits their lifestyle. Sift CEO Abhinav Dubey told Bank Innovation the feature will launch by the end of 2017. The appp, which launched not too […]
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How can creative industries benefit from blockchain?
Five forces of #blockchain #technology could affect the #creative economy. Here are some of the risks and challenges to overcome.
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Will Fintech Interest Swing Back to Active Investing? [PODCAST]
Two distinct streams have surfaced in #fintech: passive and #active investment. Betterment is the poster child for passive investment, recently booking $ 70 million in venture funding and has continued to enhance its services. But the active investment strategy for investors is far from dead in fintech. Pierce Crosby, head of business development at partnerships at […]
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OnDeck Will Focus on Better Borrowers, Expanded Partnerships to Grow Originations
#OnDeck is turning towards upgraded features, #expanded #partnerships, and higher-quality #borrowers to jolt its #originations back towards growth. The online small business lender reported $ 464 million in originations for this year’s second quarter, said CEO Noah Breslow during OnDeck’s earnings call this morning. This is down 19% from the $ 590 million OnDeck reported for the […]
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OnDeck Will Focus on Better Borrowers, Expanded Partnerships to Grow Originations
#OnDeck is turning towards upgraded features, #expanded #partnerships, and higher-quality #borrowers to jolt its #originations back towards growth. The online small business lender reported $ 464 million in originations for this year’s second quarter, said CEO Noah Breslow during OnDeck’s earnings call this morning. This is down 19% from the $ 590 million OnDeck reported for the […]
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Payments^5
Five themes are driving change in payments today. Individually they have a significant impact on the way we pay. Combined, these effects are amplified, creating a powerful force on the payments landscape, which, if you like, we can call Payments^5.
Firstly, #banks across Europe are preparing for PSD2 inJanuary 2018, much of it focused on building open API capability. Our advice to clients is to launch with minimum viable API products based on the data they have and what they know the regulation requires. As the payments API economy grows in 2018, these APIs can be rebuilt quickly, and often, to meet market demand and opportunity.
Secondly, the new PSD2 requirements for strong authentication will impact every customer payment interaction. Banks and other PSPs are caught between the regulators focused on fraud prevention and merchants focused on seamless shopping. The answer is biometrics, in particular, behavioural biometrics which allow strong, continuous, invisible authentication.
Thirdly, instant payments are coming to Europe, with most CSMs investing in real-time capabilities. However, banks face a dilemma—they struggle to find a compelling business case based on hard numbers, but intuitively they know instant payments are essential in a digital economy, and they can see the successes in the UK, Sweden and Denmark. To progress, communities of banks need to move together, focusing on the substitution of internet and mobile banking payments to instant.
Fourthly, robotics can provide fast ROI to automate away repetitive manual tasks in bank payment processes, reducing costs and improving STP and customer service, while AI can tackle more complex tasks such as AML screening.
Lastly, cloud is coming to banking and to payments. Cloud is ideally suited to payments processing with its peaks and troughs of transaction flows, with the move to open APIs and with the proliferating ways to pay, 24×7. Cloud is the cornerstone #technology for ubiquitous payments, anytime, anywhere, from any device.
This is Payments^5. It is pointing towards a new world of Open Banking, a world in which consumers do their banking outside the banking environment, for example on merchant apps. Living Services—on demand, immediate, digital services mashed together from multiple service providers—will now include payments and other banking services, delivered through open APIs. A Cambrian explosion of APIs will develop, leading to API consolidators and aggregators, and to new businesses and new business models. Life as we know it in banking and payments is changing—for ever.
The post Payments^5 appeared first on Accenture Banking Blog.
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