PREMIUM —#Banks appear to have recoiled from the deep, detailed use of #social #media #data in their marketing. One taking a #conservative approach is U.S. Bank. “U.S. Bank tends to be more conservative than most banks, which can be frustrating for marketers,” said U.S. Bank’s senior vice president of brand advertising and social media, Kelly […]
Bank Innovation
IBM is offering #risk management and RegTech solutions with sophisticated #technology to reduce time and costs.
Financial Technology
There are boundaries, with a fair amount of grey areas, around what #financial #data #Facebook will share with its partners, presumably including Royal Bank of Canada. In a massive release of information, Congress yesterday made public around 450 pages of written responses from Facebook on its data and privacy practices. The release offers the most […]
Bank Innovation
Should #fintech companies with #banking ambition get a #license or partner with a bank for one? This is an important distinction for a challenger bank, almost an existential question. Berlin, Germany-based challenger bank N26, which has a banking license in Europe, has decided to go with the partnership route for the license in the U.S., […]
Bank Innovation
Financial firms need to improve transparency and reduce costs, the CEO of #Schwab told the Morningstar Investment Conference recently.
Financial Technology
For a long time, expensive underwriting kept #banks away from small business #lending. But not anymore. The most recent example of a bank taking note of this area is #KeyBank’s acquisition of #Bolstr’s SMB-focused digital lending platform, which it announced this week. Terms of the acquisition were not disclosed. Founded in 2010, Bolstr is a […]
Bank Innovation
PREMIUM – BBVA-backed #Azlo has created a way for small business owners and gig economy workers to access the ACH payment network, which #banks have traditionally monopolized. And now it will add cross-border payments to its offerings. “Starting next month, we will offer realtime cross-border payments without a fee in #Mexico,” Brian Hamilton, Azlo’s CEO, […]
Bank Innovation
Customers expect clear communications, good web sites and mobile functionality from their financial firms. They want respect and help with their financial lives, and most U.S. #banks don’t rank high in those areas.
Financial Technology
Bankers — are you reaching all your current and prospective customers? Do they care about what you have to say? The answer, unfortunately, is more than likely not. There is a better way, though. One of our customers, a retail bank, sent one push notification campaign and it delivered a 335% increase in opt-ins for […]
Bank Innovation
Countries across the world are gradually following in the footsteps of #Open #Banking in the UK and PSD2 in the EU, given the vast future potential offered by these schemes. In #Australia, the federal government has agreed to implement the recommendations made by the Open Banking Review team chaired by Scott Farrell, for the regulatory #framework under which an Open Banking regime would operate. And initially, the four major #banks in Australia have been mandated to make banking data available to TPPs (third-party providers) by June 2019.
It is designed to give customers more control over their information, leading to more choice in their banking and more convenience in managing their money—thus resulting in more confidence in the use and value of an asset mostly undiscovered by customers: their data.
One could consider the UK’s Open Banking technical specification as an example approach. Specific API design principles—such as redirect-based authorization and authentication flow—have been taken as the starting point for setting data transfer and authentication standards in Australia, though these would be adopted only with appropriate considerations.
Contrary to PSD2 and UK Open Banking, Open Banking in Australia is part of the Consumer Data Right. The CDR will give consumers greater power to control their data—and banking is the first sector in which it will be applied. So, the focus of all the developments is to form a single, broader framework which is interoperable across sectors apart from banking. The Farrell Review has given special consideration to how Open Banking is going to work with existing laws and systems such as the Privacy Act, Competition and Consumer Act 2010, and Anti-Money Laundering law to avoid any uncertainty and ambiguity.
Australia has taken a very structured approach in planning for Open Banking to work with existing regulations and incorporating lessons learned. It has also addressed considerations such as customer education, dispute resolution, the ACCC breach reporting obligation and post-implementation assessment to make Open Banking more effective in Australia.
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