#Blockchain has yet to realize its full potential, and right now, it seems like financial institutions and #technology providers aren’t rushing to push it out of its nascent, proof-of-concept stage. When it comes to blockchain, the technology is “always interesting,” Anil Beniwal, director of engineering for online investment company Betterment, told Bank Innovation — but not […]
Bank Innovation
Enhancing #supplier #acceptance of card payments continues to be an important lever for growth and expansion of distributed plastic #purchasing #cards (“P-Cards”) and virtual card programs (“ePayables”). New findings from the recent NAPCP and Accenture Supplier Acceptance of P-Card and ePayables Payments Survey highlight industry progress in this area since our 2013 and 2009 survey findings.
In summary, supplier acceptance continues to show signs of improvement:
Source: NAPCP and Accenture
Suppliers have many reasons to take cards and are increasingly handling card acceptance in a more automated manner. Figure 2 documents several key reasons why suppliers accept cards for B2B payments.
Source: NAPCP and Accenture
Looking forward, corporates and their P-Card and ePayables providers should continue working more closely with their suppliers to increase their knowledge of lower acceptance costs available through passing Level 3 line item detail transaction data. Qualifying for larger transaction size rates and assisting suppliers in automating the receipt and reconciliation of payment instructions and remittance data is also necessary.
I invite you to read the full report to find out more about the link between acceptance and payments growth.
For more information on the NAPCP, visit http://www.napcp.org.
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SANTA CLARA, Calif. – Day 2 of FinovateSpring has come and gone, and curiously, there were #still no demos focused on #blockchain #technology. Among the 54 fintechs that demoed here over the last two days, #more than half showcased products and services that used artificial intelligence in some shape or form, but none of the […]
Bank Innovation
Long-time #fintech analysts have low #expectations for Facebook’s newly unveiled #blockchain #initiative to be headed by PayPal’s former president. Further, analysts suspect the effort might not center on using blockchain to offer financial services on the Facebook platform. “[I] can’t say I have any idea what the [Facebook] blockchain initiative will focus on,” Ron Shevlin […]
Bank Innovation
Chatbots are great for personal interactions with #banks, but the camera may soon provide an even more powerful tool for gauging customer sentiment. How? By reading the expression on a customer’s face, the way another human would. Seems unbelievable, right? Not according to Raghu Rajah, vice president of digital #banking, engineering and product management at […]
Bank Innovation
With the introduction of the EU’s revised Payment Service Directive (PSD2), the financial system is witnessing transformation in the banking system, along with the emergence of the concept of Open Banking.
On one hand, PSD2 aims to drive #innovation and competition in the #market by asking #banks to open their infrastructure to third-party providers (TPPs) with application programming interfaces (APIs), while on the other hand, it requires banks to reconcile authentication systems with frictionless user experience.
The number of TPPs connecting to banks’ systems will increase, boosting the risk of unauthorized access to customer data or even fraudulent initiation of payments. It also becomes very important for banks to move to a more standardized #security architecture and establish a security gateway for pre-validation of API calls, and more. The strict PSD2 security requirements stated in the Regulatory Technical Standards (RTS) on Strong Customer Authentication (SCA) and Common Secure Communication (CSC) could harm user experience, but the RTS provides a way out: behavioural biometrics.
With the arrival of new entrants in-market, banks will face increased competition. Thus, to retain their position in the payments space, banks could turn innovative security into a market #differentiator.
Hence, we can say that while PSD2 aims to protect consumers from fraud by increasing payments security measures around biometrics, it also enhances competition and innovation.
Read my complete blog on this in more detail and share your views.
The post Security innovation as a market differentiator for banks appeared first on Accenture Banking Blog.
Mastercard launched #PromptPay, a P2P payments application, in January 2017 in #Thailand. The app now has more than half of the Thai population registered — 40 million people with over 173 million transactions and 700 billion baht ($ 22 billion) in money transfer value, according to data newly released by Mastercard. The product comes from Mastercard’s […]
Bank Innovation
#Facebook has formed a team to tackle #blockchain initiatives. And it has put the former PayPal President David Marcus in charge of the effort. Marcus’s involvement implies that the blockchain effort might have some financial services implications. Last December, Marcus joined the board of Coinbase, the #cryptocurrency exchange. Facebook announced a whole slew of executive changes […]
Bank Innovation
EXCLUSIVE— As #open #banking sweeps through Europe with the launch of PSD2, GDPR, and other regulations focused on transparency, #North American financial institutions might want to consider looking to #blockchain or artificial intelligence for their own compliance challenges. This is according to Richard Arundel, general manager, North #America for financial #technology provider Currencycloud, who noted […]
Bank Innovation
The chaos related to data privacy concerns and the use of customer data has had a major, negative impact on the valuation of the so-called FAANG (Facebook, Amazon, Apple, Netflix, Google) companies, reducing their market capitalization by a range of five to 15 percent in just a few weeks and raising questions about the sustainability of the business models of these companies going forward. Chinese Internet giants such as Alibaba, Tencent and Baidu have also been affected.
As the investing community sorts through the news and assesses the prospects for FAANG and other tech companies, European #banks have an #opportunity to reposition themselves as trustworthy, technologically sophisticated companies with opportunities for growth after a lengthy period of reorganization and, in some cases, downsizing.
In the bad news for FAANG, there are some potential positives for banks, including:
While looking at these positive elements, we also need to look closely at the #fintech ecosystem for signs of stress in the wake of FAANG developments. So far, however, fintechs’ ability to raise venture capital and attract early stage investors seems undiminished.
Similarly, the gap between the valuation of banks vs. digital players has hardly diminished over the past weeks, with FAANG price-to-book valuations still at 10 times those for banks. The differential reflects contrasting expectations of the group’s growth potential, with future value reflecting more than 50 percent of the enterprise value of FAANG throughout 2017, vs. only 16 percent of the enterprise value for leading banks, and about -7 percent for the non-leading banks.
Despite the efforts of some banks to be perceived (and valued) as technology players, they have not received tech-type market valuations. The current crisis of trust associated with some FAANGs presents banks with a unique opportunity to leverage the trust and security built into the DNA of many banks.
The post A (brief) moment of opportunity for banks appeared first on Accenture Banking Blog.
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