#Conversational #banking is in the spotlight. Google’s recent voice demo with Google Assistant has led many to look for — or create — an equivalent in the banking industry. Some larger #banks are trying. Bank of America is in the middle of rolling out its AI-driven virtual assistant Erica in stages across the country; Capital One has […]
Bank Innovation
The expectation for P2P payment apps is more than just payments. As the U.S. market gets saturated with various P2P apps, consumers are demanding that Venmo or Apple Pay or whatever platform they are using provide them with some #money–#management capabilities as well. Even at major #fintech conferences such as Finovate in Santa Clara, Calif., […]
Bank Innovation
On 13th January 2018, the second Payment Services Directive (#PSD2) came into force, defining a new chapter in the European payments market. It requires #banks to open their systems to third parties and provide interfaces to them to initiate payments on accounts, retrieve account information and a confirmation of availability of funds on accounts. Application programming interfaces (#APIs) play a vital role and standardized APIs are required to avoid fragmentation in the European market, and promote the digital ecosystem. PSD2 does not come with an API standardization. To help fill this gap, the Berlin Group—consisting of almost 40 banks, associations and PSPs from across the EU—has defined a common API standard called “NextGenPSD2”, which provides guidelines to reduces XS2A complexity. It is ready to be used by banks and TPPs for implementing PSD2-required bank account access.
Berlin Group’s NextGenPSD2 is the leading API framework that helps banks to #build API standards. Since NextGenPSD2 does not specify one single API standard, banks #should follow basic principles of API design and build API standards that are state of the art:
Time is short. By 14th September 2019, banks are mandated to be RTS-compliant and even make APIs available for testing and piloting six months before the market launch. Having the optimal APIs in place that follow best practice principles will be crucial for banks’ “#Beyond PSD2” open banking strategy.
Have a look at my complete blog and share your views.
The post How banks should act now to build state-of-the-art APIs for PSD2 and beyond appeared first on Accenture Banking Blog.
There are quite a few lending solutions these days for #small businesses — Funding Circle, OnDeck, Kabbage, and Square Capital, to name a just a few — but #innovation and digitization are lagging in other areas, such as digital account opening. Enter Gro Solutions, a sales and marketing platform for financial institutions. Atlanta-based Gro has […]
Bank Innovation
#Cryptocurrency is going mainstream, or rather, #banks and cryptocurrency exchanges are growing #more enmeshed. Jamie Dimon and Warren Buffett may still think #bitcoin is a Ponzi scheme, but in the meantime, Goldman Sachs has reportedly opened a crypto trading operation, apparently a first for the banking industry, and #Coinbase, the market-leading wallet and exchange, is […]
Bank Innovation
Even more than winning on mobile, #banks would like to minimize security threats. Banks lost $ 16.8 billion to fraudsters last year, according to a Javelin report, and the number of U.S. customers victimized by such attacks increased to 16.7 million, up from 15.4 million in 2016. Protecting customers is paramount for executives. A global study […]
Bank Innovation
Accenture’s Global Risk Management Study highlights ongoing integration and #coordination #challenges that face #banking #risk #management teams. In our study’s first year (2009), only 15 percent of respondents reported having an integrated IT risk infrastructure. Over the years, that gap has closed only incrementally. This year, 67 percent of respondents report roadblocks resulting from a lack of integration across the enterprise.
New this year, though, is how our banking respondents view centralization. We first examined centralization trends in risk management coordination by risk type (market, credit and liquidity risks), and the results are somewhat contradictory. The 16 percent who are currently fully centralized expect to see an increase in coordination to 24 percent. Even the 20 percent of respondents who are fully decentralized, operating at mostly regional levels, expect more centralization in two years’ time.
However, the majority of respondents that currently operate both a group and regional level believe the trend is toward decentralization. Forty-three percent of this cohort believe that coordination by risk type will actually decrease by nearly 10 percentage points overall in the coming two years.
Interestingly, we see the same pattern of results in our examination of the coordination of risk management across lines of business. Those fully centralized across lines of business expect an increase of 10 percentage points in two years’ time and similarly those fully decentralized expect almost a halving of their full decentralization rate. Similarly, the majority of respondents fall in the hybrid model of centralization and believe that only 25 percent of risk functions will be coordinated across the business in two years’ time.
Lastly, we looked at coordination of risk management activities across the overall business and found a lack of strong sentiment regarding coordination one way/another. While 40 percent of respondents felt there was limited coordination between local- and group-level risk management functions, nearly 30 percent felt that this was neither true or untrue.
Where do these seeming contradictions lead us? We see the role of risk manager becoming more integrated with the business and thus, demand has been put on the risk function to respond to both global and local needs. One intensive local need to highlight from our study findings is regulations; 78 percent of study respondents cite they are facing increasing demands in this area.
Being an integrator of risk is a challenging role, not only in terms of serving global and local needs but also in terms of cost. Over 50 percent of respondents reported duplication of risk management efforts across lines of business.
While #banks’ risk functions have had steady success since 2009 in coordinating with the business, a lack of integration with other business functions has always been a gap cited for improvement. We see an upward trend in improvement. In 2015, 7 percent of respondents said the risk and finance function worked closely together and provided joint input into enterprise risk strategy. That number more than doubled, to 16 percent, in this year’s study. And in two years, 30 percent of respondents expect that level of coordination between risk and finance.
The other good news is the steady growth in influence among our survey respondents. Risk leaders have evolved from leading a very siloed function in 2009 to gaining a direct line to the CEO by 2013, and even a seat “at the table” in 2015. That positive trend is tempered by the challenge to integrate finance and risk. Only 38 percent of respondents say the finance and risk functions are working together—but they are not working together to help guide enterprise strategy.
So, will risk leaders in banks take their seat at the leadership table to drive further integration? Time will tell, but we believe that working with common data sets and flows can be a powerful lever in addressing coordination challenges cost-effectively.
We expect risk leaders to raise their game and be talented in many disciplines in order to rise to the integration challenge. In my next post, we’ll explore talent needs.
How can risk managers balance both coordination and cost management? We believe sharing data is the key. Integration can be driven with increasing efficiency when data is at the core of the bank’s operating model. To effectively and efficiently share and use data means being a smart technologist, employing new technologies and a coordinated approach across the business.
The post Meeting banking risk management coordination challenges appeared first on Accenture Banking Blog.
For years pundits have warned #banks will lose in the billpay game. Spoiler: They were right. Way back in 2013, Ron Shevlin, now director of research at Cornerstone Advisors, said banks were losing billpay for several reasons: Billers have made it easier to pay #bills (via email and other notifications) An aversion to banks among […]
Bank Innovation
#Citibank unveiled an improved #mobile app #experience for its Phillippines market with added features for billpay, funds transfers, and PFM. Updates include faster authentication and a feature called Mobile Snapshot, which allows users to check their balance without having to log in, one time pin or OTP for an online bank transaction, and Touch ID. The […]
Bank Innovation
#PayPal’s $ 2.2 billion acquisition of Swedish small business commerce platform #iZettle will boost its #presence in 12 markets across European and Latin America, particularly in the physical #retail space. The move highlights the increasingly overlapping businesses of PayPal and Square, of which iZettle is a competitor. Indeed, the #announcement negatively impacted Square’s stock, though briefly. […]
Bank Innovation
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