Many #financial institution businesses see #fintech as a #threat. At least, that’s according to a recent report by PwC, which says that 88% of incumbent FIs see themselves losing revenues to fintech innovators in the space. According to PWC’s most recent report “Redrawing the Lines: FinTech’s Growing Influence on Financial Service,” that 88% number is […]
Bank Innovation
EXCLUSIVE—All eyes are on #bitcoin as #2017 draws to a close: will the notoriously volatile #cryptocurrency end the year at a $ 10,000 value? Like most things in cryptocurrency, this is debatable: on the one hand, bitcoin’s current climb — the currency passed $ 8,000 earlier in the month — is giving the $ 10K camp plenty of […]
Bank Innovation
EXCLUSIVE–With global #payments service #SWIFT gpi (global payments innovation) finishing up its first active year, how is SWIFT planning to push the service forward in 2018? The banking infrastructure provider will be moving gpi forward through new partnerships and new projects, most notably API capabilities, Stephen Grainger, managing director, head of North America for SWIFT, […]
Bank Innovation
EXCLUSIVE – The latest in #PayPal’s busy week: the payments company is now letting users create an #invoice through the #Facebook #Messenger service, expanding on its recent partnership with the social media platform to enable P2P payments through Facebook’s chat service. In a corporate blogpost yesterday afternoon, PayPal announced that it would now let sellers create […]
Bank Innovation
Consumers still aren’t comfortable receiving notifications like late #payment #reminders through #social #media channels, a study released today by #FICO found. While more and more consumers are growing used to conducting their daily financial needs via digital channels, things like mobile or chat apps or social media remain an “inappropriate place” to #send notifications for […]
Bank Innovation
The Innovator’s Dilemma hangs over financial firms #digital transformation strategies — they making money, so why change? #Forrester says they have to if they want to remain profitable.
Financial Technology
EXCLUSIVE – #Bank of #America had five million transactions via the digital payments service #Zelle in October alone, an amount 35% higher than the average 3.7 million transactions per month the bank reported in September 2017. Yesterday evening, the bank announced that it processed a total of $ 1.5 billion dollars through Zelle in the month of […]
Bank Innovation
EXCLUSIVE—#Banks need to start integrating with more #fintech services and building out more products through APIs, #FI.SPAN CEO Lisa Shields told Bank Innovation, #before regulations on open banking start to cramp what FIs can build. “What we are betting our business on, is that there is a massive opportunity for banks to innovate,” Shields said. […]
Bank Innovation
In “Paradise Lost”, 17th-century English poet John Milton describes two types of warriors: One group are “employed in sporting games and exercises” and “sing in the valleys”, while the other group “rend up both rocks and hills”, “make wild uproar” and “ride the air in whirlwind”.
Milton’s bifurcation also applies to the modern-day #payments industry. With fast-paced disruptive change sweeping the industry, are traditional payment players going through the motions trying to protect their traditional sources of profit or are they willing to be combative and create “wild uproar” by driving radical change?
Consider Accenture’s prediction that in the UK alone there will be between six billion and nine billion contactless card transactions in 2017. Alternative payment mechanisms such as PayPal and iDEAL will continue to grow at 20 to 30 percent a year for e-commerce transactions, driven by convenience and sky-rocketing fraud rates in card-not-present transactions. We estimate that up to 25 percent of banks’ traditional cross-border payments revenue streams are at risk from these innovations. These are just a few of the seemingly endless examples of disruptive change in the payments industry. Traditional payments players are at a crossroad: figure out how to ride this whirlwind to success, or be content to just keep playing the traditional games.
To help #banks make sense of this fast-changing landscape, Accenture has identified ten payments #mega #trends from our 2017 North America Consumer Payments Pulse Survey.
One key trend is banks’ new-found enthusiasm for collaborating with digital consumer-to-business and #fintech partners to both exploit the power of an exponentially growing network and deliver benefits to customers. Tapping into these networks allows payments players to multiply capabilities and extend their reach without building and investing from scratch. One example is Zelle®. This API-enabled network of more than 50 partners, including Ally, Wells Fargo, Bank of America and JPMorgan Chase, offers real-time, person-to-person payments and disbursements through one recognisable brand. According to Zelle, some 85 million consumers can now experience its services through the mobile banking apps of the Zelle Network® participant banks. The app quickly ramped up to $ 33.6 billion in network volumes and 100 million transactions in the first half of 2017. This scale gives participating banks the edge they need to compete effectively with challengers like Venmo from PayPal. Creating and capitalising on network effects require banks to participate in digital ecosystems beyond their own walls and be willing to subsume to some degree their own operating models, cultures and strategies. Just as the payments industry of 50 years ago was energised by the emergence of the credit card networks, we are now seeing a new set of digital networks emerge that also have the power to reshape payments.
Another critical trend driving the #future of payments is the democratisation of payments acceptance. Today, everyone can be a merchant and every device can accept payments, whether you are talking traditional point-of-sale, online or mobile. Enabled by new entrants like Stripe and Square, all it takes is connectivity, a portable card reader or a website to create the next-generation POS. This “payments everywhere” wave that enabled small merchants and peer-to-peer commerce has also created new growth opportunities for payments players; they can address such increasingly attractive markets as large merchant payment margins get more compressed. This democratisation of payments acceptance has also created new opportunities for analytics-based lending and data monetisation strategies, which also offer new and appealing revenue streams for payments players.
These are just two of the ten payments mega trends identified in our recent report, Driving the Future of Payments: 10 Mega Trends, and I encourage you to explore the other eight. Regardless of what type of payments warrior you are, we hope this report can help you ride the whirlwind to the future, as simply singing in the valley is unlikely to be a successful long-term strategy.
The post Ten mega trends that will drive the future of payments appeared first on Accenture Banking Blog.
#Morgan Stanley issued its inaugural #fintech #award to Brighterion, a Mastercard company that fights fraud with AI.
Financial Technology
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