Fintechs are partnering with #banks, banks are using #blockchain #technology, artificial intelligence, and #cryptocurrency and financial regulation is still undergoing massive changes. Challengers to traditional #banking, payment, and loan products have all launched this year, and FIs are fighting fraud, hacks, and scams with an increasing number of biometric security measures. #2017 has been a […]
Bank Innovation
#SWIFT’s #Innotribe program will look #outside the #financial #services industry for ideas on how to build on legacy.
Financial Technology
What is the #state of #banking #innovation today? Each year, we poll the industry to find out. #Fintech funding has grown tougher for startups, but #banks’ balance sheets are looking stronger– what does it mean for innovation? Talk has shifted from last year&8217;s discussions on #blockchain and chatbots to artificial intelligence and cloud-based cores. Many […]
Bank Innovation
Earlier this year I made a set of #payments #predictions for #2017, which is living up to expectations as a year with new developments and change occurring on all fronts. In this blog, I give an #update on how the payments landscape is shaping up and rotating towards a new world of digital payments.
Prediction: Contactless card transactions in the UK will rise to between 6BN – 9BN transactions in 2017, (compared to my forecasts a year ago of 3BN transactions for the UK for 2016).
Contactless transactions are growing at a huge rate, far faster than most realize, showing a profound change in the way we pay across the globe. They are also spilling over into mobile contactless payments (e.g. Apple Pay) which grew 336 percent in the UK in the first half of 2017 compared to the same period in 2016 according to Worldpay.
Prediction: Voice payments solutions will start making a hit with the public—perhaps through Siri on iPhones, Alexa on Amazon and at POS.
Voice payments and voice commerce are an emerging trend that is here to stay.
Prediction: Alternative payment mechanisms (APMs) such as PayPal, iDEAL in the Netherlands and Klarna (Europe and US) will continue to grow strongly (20 percent – 30 percent) for e-commerce, driven both by convenience and by high fraud rates in card-not-present transactions.
APMs are already more popular than cards in some countries for e-commerce, and this continuing trend shows cards dominance is under threat globally.
Prediction: The UK will continue to lead the world in instant payments. Plans will be developed for a new real-time payments infrastructure that leaps ahead of current implementations in terms of ambition and capability.
Prediction: Faster Payments will process 1.65BN transactions, 15 percent higher than 2016 (1.4BN transactions).
Instant or real-time payment infrastructures are appearing all around the world. Adoption is gradually gaining pace and we can expect years of ongoing renewal, such as in the UK, as they embed and evolve with the demands of the digital economy.
Prediction: #Bitcoin transactions for 2017 will be 150M transactions (up from 83M in 2016), miners’ revenue $ 850M ($ 562M in 2016), the average hash rate will be 5.7gh/s (1.5gh/s average in 2016), $ 120BN will be transacted in Bitcoin ($ 56BN in 2016) and the average number of unique addresses used daily will average 600K (406K addresses daily in 2016).
This is a blizzard of statistics, but they show that the Bitcoin network continues to grow in terms of transactions and users (addresses), that significant sums are transacted over it, and that while miners are multiplying—in fact, tripling—the computing power (# rate) in the Bitcoin network, they are receiving significant rewards for doing so.
The number of Bitcoin transactions is still very low for a payments network, and are constrained by the current network capacity limit (which is supposedly being resolved), indicating that the Bitcoin network is more a store of digital asset value than a payments network. However, while miners’ revenue is dependent for now mainly on block rewards, over time this will diminish increasing their need to compete for transaction fees, and if Bitcoin is to endure, the number of transactions will need to grow significantly.
I suspect that this is part of Satoshi Nakatomo’s game plan for Bitcoin, and if it materializes, Bitcoin will become a mainstream force over the next 10 years as a store of value and as a payments network.
Prediction: Ripple will be the one DLT player in payments that grows, with its #technology moving on from use by #banks for pilots, bilateral exchange and internal payment flows, to use as a new cross-border payments network with growing transaction volumes between networked banks.
Ripple goes from strength-to-strength. While there are some examples of banks experimenting with other DLT, such as R3 in Singapore, no other DLT player comes close to the penetration of Ripple in payments, particularly cross-border payments.
The post 2017 payments predictions: A mid-year update appeared first on Accenture Banking Blog.
A recent report by #Malauzai #Software showed that new app #growth #rate among #banks and credit unions has slowed down by 8% this year. This #slow down is an indication that the market is saturated, according to the report. Nevertheless, this year had the highest number of #mobile #banking #apps. The survey, which was conducted […]
Bank Innovation
EXCLUSIVE — Shanghai-based online lender #China #Rapid #Finance reported a 240% growth in consumer loan volume year-over-year and is #expecting its continued focus on its target consumer base to continue that growth. The company, which last year became the second Chinese online lender to conduct a U.S. IPO, is aimed at servicing what it calls […]
Bank Innovation
This year could be the year that VC- backed #fintech #investment deals and #funding #reach an all-time #high. According to a report by CB Insights, released earlier this week, venture capital-backed fintech companies across the globe raised a total of $ 5.2 Billion across 251 deals in the second quarter of this year. This number reflects […]
Bank Innovation
#2017 was a tumultuous year, but despite some stops and starts, innovation in finance is only gaining more momentum. As the year saw changes in financial regulation, startup culture, and trends in venture capital, innovation moved forward: #blockchain labs were made, funding was fought for, mobile payment systems were integrated, and the limits of artificial […]
Bank Innovation
Fighting for marketshare in the mobile wallet space is not getting any easier. According to a recent report, #Apple tops the charts with its digital wallet, and is expected to nearly #double Apple Pay userbase this year. The study, released by Juniper Research this week, estimates that Apple Pay will hit 86 million #users in […]
Bank Innovation
How will #regulation affect financial services firms in #2017? Well, everyone agrees it will bump up #costs, according to a study by corporate finance advisor Duff & Phelps. Of 181 financial services professionals surveyed for the study, 77% of respondents said that up and coming financial regulations will #increase costs for their firms. The only other choice […]
Bank Innovation
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