We’ll say this: #virtual #reality #trading looks cool. Citigroup released a #video earlier this week that #shows the potential (tremendous) #power of virtual reality to present data for trading. The example used is a trader at a workstation with a massive monitor — the #technology could equally be used with mobile devices &8212;Read More
Bank Innovation
The financial services industry is another major area in which #client #information must be securely protected to prevent market manipulation. At the same time, however, compliance divisions must be aware of the identity of trading counterparties in order to mitigate potential money-laundering activity. As such, a system which balances both compliance requirements and trading anonymity is required.
Indeed, regulators may find the anonymity of #blockchain a challenge to wholly approve, as it makes it difficult for them to conduct their ‘know your customer’ (KYC) checks to prevent money laundering. Blockchain’s close association with #Bitcoin, moreover, hasn’t helped matters, especially as the #cryptocurrency has been notoriously used in criminal activity, and even funding for terrorist activity.
In November, Israeli start-up Polycoin showcased its blockchain-based compliance service, which will provide a verification system for financial transactions. This will help compliance officers to handle their anti-money laundering (AML) and KYC requirements. Polycoin’s platform scrutinizes financial transactions to try and identify who they are from, and they are then placed into a ranking system. Those transactions deemed as being suspicious – such as an AML breach – will be identified by Polycoin’s platform, which will then send an alert to compliance for further investigation.
Polycoin CEO Alfred Shaffir thinks his firm can provide a complete solution for blockchain compliance, and considers Polycoin’s innovations could have as profound an impact as digital financial crime prevention tool ‘NICE Actimize’ had in the late 1990s. As such, Shaffir is of the opinion that for any bank working with blockchain, transformation of compliance systems and procedures will be their first priority.
Indeed, #banks have already responded positively to Polycoin’s proposals, with the start-up participating in the innovation accelerator project in Israel conducted by financial services giant Citi, while also being chosen as one of 10 participants out of 170 applicants for Finnish bank Nordea’s accelerator in Helsinki. Shaffir has stated that Polycoin has received much interest from those banks that are interested in integrating blockchain into their businesses in the future.
Blockchain compliance specialist Tradle is simplifying the KYC process even further. Last August saw London’s Startupbootcamp #FinTech accelerator take place, where Tradle CEO Gene Vayngrib explained how blockchain #technology could ease the costly pain of compliance for banks. The company is creating a user-friendly smartphone interface that will allow documentation to be sent electronically, thus eliminating the need for inefficient paper-based communication. Furthermore, within each bank currently, separate KYC checks are conducted across products, divisions, locations and subsidiaries &8211; this lack of sharing elevates KYC costs unnecessarily.
Vayngrib instead proposes a blockchain-based app called Trust in Motion which stores KYC #data on a permitted ledger and which all authorized parties can access when required. He calls it the Instagram for KYC, as clients can snap a picture of their ID documents (their passport, for example) and send it directly to the bank. Once the compliance officer verifies the pictures using authentication processes, the documents are digitally signed and put onto the blockchain which, assuming the appropriate authorizations have been granted, can be co-managed by the bank and the client for updates and reverifications.
The technology could also be extended to include AML rules, whereby instead of having to prove to regulators that AML checks have been conducted by sending them mounds of data, automatic procedures can be established that perform AML duties such as the reporting of suspicious transactions. According to Vayngrib, the blockchain method wholly preserves the privacy of the data, while the regulator “could get information about suspicious transactions without banks sharing a lot of raw, private data with them”.
While regulators will like the fact that blockchain’s verification process involves a network of users providing authentication and security, bankers on the other hand will not like this lack of privacy, particularly when it comes to sensitive trading data. Furthermore, financial institutions (and other companies) have suffered numerous data breaches in recent years that have cost them dearly.
Even if several banks are operating on a shared private ledger (with only a limited number of network users), each bank will still want to keep data from every other user in the network. Banks are extremely secretive about the business they transact, as well as the clients with whom they conduct business, meaning that this information can’t be disclosed to competitors, even on a private blockchain.
The post Blockchain to Optimize and Secure Client Data Information &8211; Part 2 appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
This morning, the US woke up to a financial meltdown. But not the kind you’d expect. Early this morning, #cryptocurrency exchange operators got urgent orders to halt trading activity on ethers, the cryptocurrency behind the #blockchain platform Ethereum. The reason: nearly $ 60 #million of ethers were #hack (i.e. stolen). The hack hasRead More
Bank Innovation
The #Bank of #England is continuing to explore distributed ledger #technology as part of a wider embrace of financial technology.
fintech techcrunch
The evolution of financial payment systems has been a long but interesting journey characterised by sudden changes in underlying #technology. Financial payments and banking started in a very inefficient and traditional way which was slow but still acceptable to the customers due to the stage in the information age. Initially, almost all the fun and joy in terms one double zero percent in shape of activities in the #financial services (Except Non-Banking Services) space was attributable to #banks with all the revenue being collected by the same entities. With advancement in technology, organisations outside the banking industry diversified into financial services targeting margins in the space. These were organisations servicing millions of customers through broad distribution channels, be they #mobile operators, retailers or on-line merchants.
The phrase mobile #commerce was originally coined in 1997 to mean “the delivery of electronic commerce capabilities directly into the consumer’s hand, anywhere, via wireless technology Singapore’s e-commerce market will hit US$2.99 billion while m-commerce will reach US$1.18 billion by end-2014, clocking an annual growth of 38 percent and 65 percent, respectively, between 2011 and 2014, according to the latest stats released by PayPal with the average consumer forking out US$1,861 a year on purchases. By 2018.
In the early days, banking services were basic; covering deposits, withdrawals, loan processing and interest capitalisation. These transactions were conducted in-branch and one had to physically visit a marble banking hall to conduct the banking transactions also same branch hall all the time. Access to banking services was restricted to the banks operating hours. Slowly, transactions evolved from being intra-bank to interbank with settlements being conducted through a settlement partner..
The introduction of magnetic stripe technology upped the tempo by allowing transactions on ATMs and POS machines through debit and credit cards. ATMs brought about 24×7 access to banking services and the underlying technology evolved from simple cash dispensers to deposit handlers which allow customers to perform a multitude of transaction sets which were previously confined to a brick and mortar banking hall.
The internet age brought about an era which took banking to the comfort of one’s home or office. However, internet banking was quickly coupled with mobile banking which was SMS based in the initial days. Mobile banking paved the unity and collaboration between mainstream banks and telecommunication companies. This fusion brought about the rise of mobile financial services. The most common form of mobile financial services is mobile money – Empowers a service provider with a set of distinct features that provides an intuitive and convenient way for managing service channels with various interfaces under single roof and covers airtime purchase, peer to peer transfers, bill payment and merchant payment. With these advancements, the mobile handset has become a critical channel to accessing financial services. Due to the heavy involvement of regulators in this space, most mobile money services focused on the banked customers. Mobile money services in Kenya, Zimbabwe, Tanzania and many other African countries took a radical move and focused on the under banked segment of the market. Most of these operations were successful due to the extremely low banking penetration rate, flexible regulation, market need and low trust in banks. Today, mobile penetration has reached levels equal to or surpassing population levels of multiple countries across the globe. Financial services is a key need of any human being and it makes sense to enable multiple sets of financial tools and features on mobile phones.
Mobile Money Solution has got the edge over existing solutions in this domain because of it’s economical and ubiquitous, Flexible & Scalable nature. Singapore’s e-commerce sector will further increase by 13 percent annually while m-commerce will grow 15 percent. To continue its growth and begin to fulfil the promise of an e-money economy, industry stakeholders must work together to unleash convergence, drive customer acquisition, and refine enable technology. Mobile money must have a clear appeal to consumers, the public sector, and the private sector. The Mobile Money system identified a number of key lessons for all of the industry’s stakeholders. Primary among these was that mobile money’s development value rests in its ability to facilitate financial sector inclusion. To do so will require financial institutions and Mobile Network Operators (MNOs) to work together with regulators on a country-by-country basis. Smartphones, tablets, and, in the near future, watches, eyewear and other wearables, will emerge as new points of sale. Online retailers with a well planned, flawlessly executed, and tightly integrated mobile presence stand to gain the most. More impulse buys come from mobile, with clothes, books, and music noted as leading impulse buys. In 2014, mobile commerce was expected rise to $57 billion (Google as source). By 2017, mobile is poised to represent nearly a third of all digital sales at $115 billion (Google as source). In 2013, physical and digital retailer, Target raked in 43 percent of its digital sales from mobile-only users(www.internetretailer.com)
Savvy mobile shoppers use their devices for more than just clicking the “Buy Now” button. According to a 2013 survey from Deloitte, smartphone owners used their devices to find store locations (56 percent), check and compare prices (54 percent) and get product information (47 percent). Mobile is disrupting the way we browse a store’s showroom. Over a third of users report consulting mobile devices in-store to compare retailers and one out of five go mobile in the store to view products on the store’s website. More importantly for retailers, mobile shoppers were prepared to spend 27 percent more on holiday gifts than non-smartphone owners.
The mobile movement isn’t just for traditional retailers. By integrating mobile into insurance claims processing, the process has become 30 percent more efficient. Looking ahead to 2015, over 80 percent of insurers plan to be using mobile technologies in claims, customer service and field sales.(http://www.baselinemag.com)
On a lighter side Recession & Depression are not synonyms as use of them are way apart like if you don’t make money in business thats recession and if your neighbour makes money from same business thats depression
Banks lost out on revenue from mobile transactions as MMS became increasingly popular. Major success factors of MMS being the flexibility to transact at anytime, anywhere and with access to make payments to utility bill companies, airtime sellers and merchants. To maintain relevance, banks started working on technology based payment solutions in collaboration with card companies and opened their doors to all customers and services. This brought about the merger of mobile money services, mobile financial services and mobile banking services. With this fusion, cross border remittances, peer to peer transfers, payment for water, DTH, electricity, internet subscriptions, income tax transactions can be completed within seconds.
Of late, we have seen companies like Apple bringing NFC functionality on mobile handsets in a bid to claim a share of the mobile payment industry. Whenever an entity outside the telecommunications industry offers a joint payment service with an MNO, the resultant is a hybrid mobile financial and banking service.
Technology is moving beyond 24×7 access so the MFIs (Cross Border & Oceans Remittances, micro loans, micro savings, micro insurance, share trading and ecommerce) should consider occupying this scape. If we evaluate payment channels we see that mobile handsets (via SMS, USSD, NFC, QR Codes, WAP, APP), ATMs, POS, internet, debit/credit card companies and money transfer agencies are widely accepted and available for payments along with Money Transfer for Inter/Intra banks/cities/currencies/countries/continents.
#ClearTax, which helps Indians file their tax returns online with minimum stress, is on a roll this year. The Bengaluru-based company, which graduated Y Combinator two years ago, announced a $ 12 million Series A round today, just one month after closing a $ 2 million seed round following an initial $ 1.3 million raise. Read More
As #data becomes increasingly powerful, meaningful and valuable, concerns over its security are on the rise. Indeed, ‘big data’ has become the recent buzz-term to describe the ever-expanding, often-unstructured nature of important #information, and has opened extensive discussions over how to approach ensuring data integrity is maintained.
One of the primary appeals of #blockchain is the security it provides, which prevents such data from being hacked. The data is fed into the system, where an encrypted code – known as a ‘hash’ value – is created for each initial transaction. Unique hashes are then combined (which allows large amounts of data to be processed), before being placed onto the block’s header along with a timestamp. At this point, the header becomes #part of a cryptographic puzzle which must be solved by the blockchain’s network of users – through a trial and error process, from trillions of possibilities – before it is finally added to the blockchain. This layered system of security, therefore, is being sought after by industries in which #client information is of a highly personal and/or valuable nature.
One of the most eagerly anticipated applications of blockchain is in healthcare, an industry which has long needed to undergo data optimization. In late January 2015, US health insurance provider Anthem learned of a massive cyberattack to its IT system, which ended up compromising a staggering 80 million patient and employee records. Because only one entity was being used to keep records of sensitive client health information, all data became readily available to the hackers from this single source.
The blockchain, however, uses cryptography to enable security in record-keeping, as well as sometimes using a system of ‘multi-signatures’, whereby gaining approval to the blockchain – and access to client data – requires the approval of several authorised users. Moreover, this can apply to all client data. Given the intensely private nature of such information, it requires the utmost protection, which blockchain can provide. Information relating to the client’s identity, medical history, specific diagnoses, treatments undergone and much more can thus be protected.
The US is currently leading the way in much of the early explorations, although the Dutch health giant Philips Healthcare is also investigating blockchain’s scope for use in the health industry. Little has been revealed about Philips’ project, other than it is in collaboration with Tierion, a start-up which is facilitating the collection and storage of big data on the blockchain. Tierion uses a system called chainpoint to ensure that all the data can be verified by blockchain receipts and timestamps. Meanwhile, California-based blockchain company Gem is also examining blockchain’s healthcare potential.
Gem CEO Micah Winkelspecht believes blockchain’s true benefit will be realized once independent parties within the health industry can be connected to the ledger to manage the lifecycle of a hospital bill. The blockchain, therefore, could be used to manage payments for numerous parties, including “insurance companies, hospital billing departments, lenders, and patients”, and Winkelspecht is now in discussion with relevant stakeholders within the health industry to explore this possibility. From there, Winkelspecht attests that blockchain can then be used “to manage the lifecycle of a patient’s medical record”, among other uses.
US blockchain company Factom, which is currently working with the Honduran government to provide greater security for the country’s land registry data, has also partnered with medical records and services solutions provider, HealthNautica, whose clients include hospitals and physicians, in order to use blockchain to enhance the security of medical records and achieve efficiency in claims processing. HealthNautica’s data, ranging from medical bills and client-physician communications to claims and disputes, will be cryptographically encoded by Factom, which produces a digital fingerprint of the data which is time-stamped and verified.
Patient confidentiality is maintained throughout because at no point is client data seen by third parties, Factom included. HealthNautica president Shailesh Bhobe calls Factom’s blockchain #technology the “perfect fit” for improving the security of its data, while board member Andrew Yaschuk believes that if health insurance companies are also educated on the merits of blockchain, all parties can be involved in verifying claims data while still protecting client confidentiality.
The post Blockchain To Optimize and Secure Client Data Information &8211; Part 1 appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
In ye olden days it was called P2P #Lending. You can still see the vestiges of that model in services such as Lending Club and Prosper. Everything happened on one service. However as these marketplaces grew, a networked #ecosystem has started to emerge. We are 100% confident that this networkedRead More
Bank Innovation
It’s anticipated that there will be more than 4.8 billion individuals using a #mobile phone by the end of 2016. Because of this enormous growth, we can expect to see the mobile payments industry and startups in the space evolve to meet the growing demands of users. To understand how big this industry is going to be, you need to understand the history of mobile payments and their… Read More
The price of #ether, the native digital asset powering the ethereum #blockchain, surpassed $ 20 for the #first time ever yesterday.
fintech techcrunch
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