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  user 3:36 pm on March 1, 2018 Permalink | Reply
  Tags: 2018 ( 47 ), 7500c0 ( 9 ), banks ( 784 ), bitcoin ( 241 ), cryptocurrency ( 124 ), fintech ( 1,103 ), payments ( 197 ), Predictions ( 5 ), remainder, technology ( 921 )   

  Payments predictions for the remainder of 2018 

  As I step into my new role as Accenture’s global #payments lead, it got me thinking about the constantly evolving industry landscape—and the themes that will play important roles in that evolution the #remainder of the year. I’ve divided my selections into three categories: Established Trends, Building Trends and New Trends, though some are applicable to more than one category. Take a look.

  Established Trends

  1. Contactless payments will continue to grow at 100%+ in Europe—expect more than 40bn transactions, all told.
  2. Cash will experience an accelerated decline across Europe. Expect fewer than 1.8bn ATM withdrawals in the UK (which peaked at 2.9 bn in 2012).
  3. Real-time payments will grow quickly where they have been established for many years. Faster Payments volumes in the UK will exceed 2bn transactions.
  4. Mobile wallet payments such as Apple Pay and Samsung will experience strong growth.

  Building Trends

  1. Propositions using PSD2-compliant APIs will appear gradually. Expect bank and #fintech applications such as account aggregation to appear in the first half, followed by retailer applications in the second half.
  2. Infrastructure renewal programmes will appear around the world, for real-time domestic payments and RTGS wholesale payments.
  3. Real-time payments adoption in Europe will be slow. While a large number of #banks will implement the #technology required and connect to new real-time central infrastructures, volumes will remain low until at least 2019.
  4. Some banks will start building cloud payment solutions as an alternative to on-premise technology.
  5. Request-to-pay as an invoicing and payment method will emerge as a proposition in several countries.
  6. Mobile wallets from China, already accepted by many retailers in Europe for Chinese nationals, will take advantage of PSD2 account access to launch services targeted at Europeans.
  7. Wearables for payments will start proliferating with new devices and fashion accessories.
  8. Although most banks will still shun #Bitcoin, expect to see cash management products appear aimed at corporate treasurers using Bitcoin and Ethereum.
  9. Ethereum will grow rapidly in popularity; its market cap will exceed Bitcoin by year’s end.
  10. Ripple’s network for cross-border transactions will grow significantly, attracting more banks and corporates, which will lead to rising transaction volume.

  New Trends

  1. The consumer experience for payments will become a battleground for banks, especially around authentication for PSD2 on third-party applications.
  2. Challenger bank adoption will be much higher than in the past due to their superior customer experience for payments.
  3. Biometrics such as facial, voice and hand-movement recognition, now robust enough for mass use, will be adopted by banks and fintechs as a weapon in the consumer experience battle, and also for securing #cryptocurrency wallets.
  4. Retailer wallets for both ecommerce and in-store payments will start appearing in sectors such as supermarkets, fuel and quick-service restaurants, emulating the success of Starbucks and Walmart, and focused on a slick checkout process using biometrics.
  5. Retailers will start demanding new payment methods for recurring payments for subscription- and credit-based services.
  6. Fintechs and banks will see the importance of linking credit and payments. Expect to see this as an emerging theme in payments innovation.
  7. Voice-activated payments will start appearing as Google Home, Alexa, Cortina, Siri, etc. grow in popularity.
  8. Central banks around the world will warm to the idea of issuing their fiat currency on distributed ledger technology—and at least one will have concrete plans to implement the technology.
  9. As banks adopt real-time payments in economies such as Australia, Europe and the US, new capabilities will emerge to operate in real time, for example, corporate cash management solutions for real-time cross-border payments, virtual accounts and fraud innovation.

  I welcome your thoughts on these #predictions—and encourage you to share your own. Thanks for reading!

  The post Payments predictions for the remainder of 2018 appeared first on Accenture Banking Blog.

  Accenture Banking Blog

   

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  user 12:19 pm on March 1, 2018 Permalink | Reply
  Tags: 2018 ( 47 ), Bank ( 246 ), Development ( 7 ), Finance ( 69 ), Head ( 9 ), Innovation ( 116 ), Joins ( 30 ), Putter, Unified ( 2 )   

  Ian Putter, Head Unified Finance Development and Innovation, Joins Bank Innovation 2018 

  EXCLUSIVE — Ian #Putter, #head of #unified #finance #development and #innovation at Standard #Bank, Africa’s largest bank, has joined the speaker roster for Bank Innovation #2018, which will take place March 5 to 6 in San Francisco. Ian Putter is currently running a number of key finance projects for the Group Finance function. Putter, who …Read More
  Bank Innovation

   
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  user 12:18 am on March 1, 2018 Permalink | Reply
  Tags: 2018 ( 47 ), banking ( 225 ), banks ( 784 ), Blockchain ( 836 ), CEOs ( 6 ), Innovative ( 6 ), Most ( 26 ), technology ( 921 )   

  10 Most Innovative CEOs in Banking 2018 

  EXCLUSIVE – Everything in #banking is changing: fintechs are solidifying their place in the financial ecosystem, as challenger #banks, online lenders, and #blockchain #technology providers become essential functions to keep the industry moving forward. As the innovations of these startups seems set to continue, 2017 seemed to mark the year that banks set themselves with …Read More
  Bank Innovation

   
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  user 12:18 pm on February 28, 2018 Permalink | Reply
  Tags: 38 ( 75 ), Comfortable ( 2 ), Consumers ( 36 ), Getting ( 5 ), Loans ( 16 ), mobile ( 112 ), More ( 56 )   

  Consumers Are Getting More Comfortable With Mobile Loans (But Not That Comfortable) 

  Customers are growing #more #comfortable completing (at least parts of) the loan process over online or #mobile mediums, a study released today by Fiserv found. The majority of customers, or 69% of the 3,095 U.S. adults surveyed, reported that they were comfortable researching loan options online, the Fiserv Expectations & Experiences: Borrowing and Wealth Management study …Read More
  Bank Innovation

   
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  user 3:35 am on February 28, 2018 Permalink | Reply
  Tags: banking ( 225 ), banks ( 784 ), dance ( 2 ), Merchants ( 14 ), Open ( 63 ), Pulse ( 2 ), results ( 3 ), Should ( 39 ), suggest ( 2 ), Survey ( 10 )   

  Pulse survey results suggest banks should ask merchants to the Open Banking dance 

  The American square #dance evolved from 16th-century English folk dances, in which the dancers are prompted or cued through a sequence of dance steps by a caller to the beat of the music. The caller is typically on a stage beside the musicians, giving full attention to directing the dancers.

  Payments stakeholders in Europe are gearing up for #Open #Banking, a new type of square dance where they are answering the regulatory compliance calls of the revised Payment Services Directive (PSD2). If they pick the right partners and are skilled enough in the dance, then they’ll stick around long enough to benefit from the new value being created. But if they are not careful, they risk falling over their own feet. #Banks need partners in this new dance and some of the most important are retail #merchants.

  PSD2 allows consumers to grant merchants access to their bank accounts for direct payments, rather than using a credit or debit card. By using bank-to-bank payments, merchants can clear and capture funds faster and significantly reduce—if not eliminate—the fees they pay for card and processor interchange services. The British Retail Consortium estimates that merchants in the UK alone could save £650 million per year¹, thanks to the PSD2-required Interchange Fee regulation. Innovative application programming interfaces (APIs) will play an important role in enabling retailers to deliver faster, more personalised shopping experiences at a lower cost.

  Smart banks will view merchants as attractive dance partners—and will help them optimise Open Banking to reap benefits and grow their business—despite it cannibalising existing bank revenue streams. If banks sit on the sidelines, then the merchants will undoubtedly find other partners.

  For example, banks can offer APIs that give merchants access to the bank’s capabilities. A recent Accenture online #pulse #survey of 50 payment executives within the European retail industry indicates that most plan to implement PSD2-related APIs over the next two years. Only nine percent of the retailers who are familiar with PSD2 do not have any immediate plans to do so; 63 percent of them cited slow customer adoption as the main reason. Most of the retailers we polled would consider embedding bank account balance displays, payment initiation, and bank account transaction history APIs into their point-of-sale (POS) systems.

  Considering high levels of consumer confidence in banks handing their data and transactions, banks are in a strong position to take on and dominate the new role of registered account information service providers (AISPs). In that role, banks can aggregate their massive amounts of customer transaction data (that is approved by regulation and authorised by consumers) to isolate and identify spending patterns based on age, region, store location, and so forth. (Think Nedbank Market Edge^TM) Merchants will value and pay for such insight to gain a better understanding of their market and to tailor their offers. Seventy-four percent of retailers familiar with PSD2 say that access to better consumer information is most important to their organisation, followed by API-initiated payments (53%), fraud reduction (53%) and the ability to generate offers at the POS based on insight from bank account data (51%). As AISPs, banks can serve as financial advisors to both merchants and their shoppers to monetise their data.

  Like the AISP role, banks are well positioned to serve as PISPs, initiating direct payments to merchants on behalf of their customers. Seventy-six percent of consumers we surveyed are likely to choose traditional banks as their PISP over third-party PISPs. Merchants are also likely to choose to partner with PISP banks to accelerate the bypassing of card networks for online payments, improve their merchant service fee structure, and gain access to ancillary services. Over the next three years, 65 percent of European merchants plan to use a third party to provide AISP or payment initiation service provider (PISP) services. In operating a PISP service, a bank would have the opportunity to capture an additional slice of transaction revenue while also providing opportunities for customer loyalty schemes and cross-selling. Accenture estimates PISP services could account for up to 16 percent of online retail payments by 2020. It’s an opportunity for banks to help merchants deliver more seamless shopping while also protecting their own relationships with customers, and avoiding being cut out of the value chain by merchants and other non-bank players.

  Whether collaborating in promenade or do-si-do style, banks and merchants can perform a variety of Open Banking dance moves to strategically lead the migration away from card payments. Banks can become “the dance caller,” giving full attention to directing the migration towards new revenue models and market relevance. Those who sit with their arms crossed on the sidelines are unlikely to be part of the long-run future of the industry.

  I invite you to share your thoughts on the near-term dance partnership between banks, merchants and consumers.

  [i] Currencycloud.com, “How Will EU Interchange Caps Affect the Industry?, February 27, 2016. https://www.currencycloud.com/en-us/news/blog/how-will-eu-interchange-caps-affect-the-industry/

  The post Pulse survey results suggest banks should ask merchants to the Open Banking dance appeared first on Accenture Banking Blog.

  Accenture Banking Blog

   
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  user 12:18 am on February 28, 2018 Permalink | Reply
  Tags: Canadian ( 7 ), insurance ( 46 ), into ( 28 ), MasterCard ( 36 ), Moves ( 10 ), payments ( 197 ), space ( 15 )   

  Mastercard Moves into the Canadian Insurance Payments Space 

  EXCLUSIVE – #Mastercard has teamed up with cloud-based payment processor Dream #Payments to provide #Canadian #insurance group FairFax Financial digital disbursements capabilities. The offering is a first of its kind in the Canadian insurance market and speaks to Mastercard’s larger strategy of digitalizing payments that are traditionally not digital, like check payments, Zahir Khoja, senior …Read More
  Bank Innovation

   
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  user 12:18 pm on February 27, 2018 Permalink | Reply
  Tags: Cloud ( 21 ), Enabler ( 2 ), Field ( 4 ), financial ( 121 ), Innovation ( 116 ), Leveling, playing ( 6 ), Services ( 53 ), technology ( 921 )   

  Leveling the Playing Field: Cloud as the Enabler of Innovation in Financial Services 

  The words “fast”, “affordable”, and “hassle-free” are seldom used in conjunction with #financial products. However, broader trends are revolutionizing how companies deliver new experiences and engage with customers across the industry. Today’s business differentiators, such as the use of chatbots to automate interactions with customers, are possible due to the advances in #technology provided by …Read More
  Bank Innovation

   
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  user 12:18 am on February 27, 2018 Permalink | Reply
  Tags: Be Fixed, Fraud ( 25 ), Needs ( 14 ), Sieve   

  ACH Is a Sieve of Fraud That Needs to Be Fixed 

  EXCLUSIVE – This month, my company, Royal Media, was robbed. This was a civilized heist, mind you. No guns were involved, no one got hurt — in fact, not a sound was even heard. It was a faceless theft, as well. Its discovery started with an innocuous question by a colleague: “Do you have a Walmart credit …Read More
  Bank Innovation

   
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  user 3:35 pm on February 26, 2018 Permalink | Reply
  Tags: Again ( 3 ), banking ( 225 ), banks ( 784 ), bilateral, Born ( 2 ), Open ( 63 ), Power ( 8 ), Trading ( 20 )   

  Banking born again: The power of Open Banking bilateral trading 

  The Turritopsis dohrnii, commonly known as the immortal jellyfish, is an extraordinary survivor. Through the rare, natural transformation of cells, an adult can revert to the polyp stage at any time—essentially being reborn as a young jelly.

  

  The #Open #Banking trend is beckoning traditional vertically integrated #banks toward a similar transformation, where they can hit the reset button on their business models to pursue new opportunities, grow their business and guarantee their continued relevance. Driven by regulation, competition—or both—banks are increasingly using APIs to make certain customer data available to third parties. Those third parties can then embed that information into their platforms to improve offerings (theirs and, often, the banks’) and benefit end customers. This reciprocal exchange is causing a rare, natural effect: #bilateral #trading that can fuel a rebirth in banking.

  On the outbound side, banks become exporters of not only customer data, but also bank-owned algorithms and business processes. It also positions banks as advisors to help create new products and services that help third parties and consumers capitalise on bank exports. By enticing and training developers to use their API-delivered component services, for example, banks can offer existing customers new services like single sign-on, the ability to pay with credit card reward points, and open accounts right from third-party sites. Consider how Mint.com is extracting and consolidating customer account information to help consumers organise and manage their personal finances. Mastercard is unbundling its services, like consumer credit check or identity management, and offering them to fintechs and other banks. Through such exports of information and services, banks can amplify their reach, distribution and customer loyalty.

  On the inbound side, banks can easily and meaningfully plug-and-play product and service features from third-party partners into their own customer-facing offerings. By doing so, they can embed themselves in more transactions—from banking products they don’t already offer, to home, auto, consumer goods purchases, travel and other non-banking services. Through its partnership with OnDeck, for example, JPMorgan Chase offers small businesses loans that lie outside its traditional risk appetite. Even new challenger banks like Starling in the UK are adopting a marketplace strategy, where they offer third-party products on their app, in addition to their own current accounts. The extreme version of inbound open banking would be to only offer third-party products, making money from orchestrating a full platform-based business to improve customer service, build customer loyalty, generate new fees and lower operating costs—without the ‘bank’ having its own balance sheet.

  More and more bank executives are seeing Open Banking as an opportunity rather than a threat. But seizing that opportunity requires mastering both the art of interdependence and bilateral trade. It requires investing to regenerate the bank and open up to third parties, creating value from both export and import flows, and differentiating the brand within and beyond financial services.

  I invite you to read our report, The Brave New World of Open Banking, to learn more.

  The post Banking born again: The power of Open Banking bilateral trading appeared first on Accenture Banking Blog.

  Accenture Banking Blog

   
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  user 12:18 pm on February 26, 2018 Permalink | Reply
  Tags: Cases ( 5 ), cryptocurrency ( 124 ), exchanges ( 10 ), Japanese ( 5 ), laundering ( 4 ), Money ( 46 ), Report ( 24 )   

  Japanese Cryptocurrency Exchanges Report 669 Cases of Money Laundering 

  Japan’s #cryptocurrency #exchanges have reported a total of 669 suspected #money #laundering #cases to the country’s National Police Agency, according to a #report by Nikkei Asian Review. #Japanese cryptocurrency exchanges have been having a rough time lately with a major hack ($ 550 million) and some major technical glitches – one that almost cost one exchange …Read More
  Bank Innovation