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  • @fintechna 3:35 am on September 23, 2018 Permalink | Reply
    Tags: , , , banking, , , frontiers, , , ,   

    New private banking frontiers: mobile apps, convenience & personalization 

    In the first blog in this series, we discussed how seeking to expand their presence in and wealth management should employ digital solutions to provide customers with the and they have come to expect from other companies with which they do business.

    are an essential part of such an integrated private banking strategy. Rather than an “add-on” feature, they should be a central element in providing exclusive services to people with premium needs. These services can range from personalized financial advice (delivered at the frequency the customer desires) to digital feeds of financial media tailored to customer needs.

    A first-class mobile app should be:

    Secure & private

    The app should have two-step authentication and may incorporate a biometric login such as voice, facial or thumbprint recognition, as well as data encryption and fraud protection.

    Innovative

    The app may connect the customer with the private bank via a chatbot or may enable voice-controlled, hands-free interaction. It may aggregate all the customer’s accounts with that institution or with other institutions.

    Robust

    It should provide the customer with a portfolio overview and interactive tools for portfolio analysis and personalization, using both human and -advisory capabilities. The app should support trading, brokerage and foreign exchange transactions as well.

    Interactive

    Through the app, the customer should be able to interact with client services via live chat, through call-backs or through other apps such as WeChat or Whatsapp. The app should also enable direct contact with the financial advisor via direct messaging, direct dial or video conferencing.

    Personalized

    The app should notify the customer of product and service offerings, provide tailored market and economic research and offer educational content using interactive tools and gamification.

    Of course, the question now is not whether private banks should have a mobile app—but how to develop an attractive, value-added offering. Human interaction is still essential to private banking, but wealth managers using mobile apps in concert with other digital technologies will have more time and better insights with which to cultivate their customers.

     

    The post New private banking frontiers: mobile apps, convenience &038; personalization appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • @fintechna 3:35 pm on September 21, 2018 Permalink | Reply
    Tags: , , banking, , ,   

    The art of Open Banking regulation 

    Taking Europe as a blueprint, other jurisdictions are now using as an accelerator to meet their own specific goals, which include increasing competition, reducing costs, fostering innovation and addressing consumer rights.

    Some of the most prominent regulations globally include:

    • PSD2 in the European Union
    • CMA Open Banking in the UK
    • HKMA Open API in Hong Kong
    • Australia Treasury Open Banking
    • Other countries in Asia Pacific (e.g. Japan, Malaysia), North America (e.g. US, Canada) and Latin America (e.g. Brazil, Mexico) are currently investigating Open Banking regulations.

    In some cases, the regulations are moderate and favor the banking industry, while others more aggressively favor competition, which could potentially threaten ’ existing business models and revenues.

    To some degree this depends on which of the multiple levers regulators use to achieve their specific goals, including:

    • Target group: Are all banks regulated or a selected set of banks?
    • Product scope: What banking products are targeted? The more products are affected, the more banks will have to find strategies to defend their existing business or take a leader position by innovating themselves.
    • Use cases and access types: What type of use cases and access operations can be performed on the regulated products? Banks could lose their role as the trusted gatekeeper for customers, particularly where regulations require banks to open their networks to allow third parties to initiate transactions.
    • Cost of usage: What are the costs for third-party providers to use the APIs? Most regulations require banks to open up access for free: in such cases, banks need to find ways to monetize Open Banking.
    • Level of openness: Who has access to the APIs? In some cases, regulations allow TPPs to register with the authorities once and gain access to banks’ APIs without any contractual agreements or bank-specific registration processes.
    • Level of market involvement: Who is involved in designing the ? Are banks’ concerns and ambitions taken into account?
    • API standards and infrastructure: Who is designing API and security standards and building the central infrastructure for the market? This is vital: multiple standardization initiatives could lead to fragmentation of standards and directory services.

    How should banks act now?

    As Open Banking rolls out worldwide, regulators are watching developments closely to learn best practices and implement a regime that will best meet their goals. However, too much regulation could threaten banks’ revenues and jeopardize their financial stability—which is not in regulators’ interests.

    The art of Open Banking regulation is in finding the right balance between regulation and market dynamics. Banks in both regulated and unregulated markets should join forces now to take the lead in self-regulating rather being forced to act.

    Read my complete article at Finextra for more insights and share your views.

     

    Accenture at Sibos

    We’ll be discussing Open Banking and other topics at Sibos. Come see us at our booth and join us in the conversation around enabling the digital economy. Keep up to date on all the latest from us around Sibos right here on the blog.

     

    The post The art of Open Banking regulation appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • @fintechna 3:35 pm on September 18, 2018 Permalink | Reply
    Tags: , , , , , banking, , , ,   

    How will data shape the future of banking? 

    Guest blogger Tara Brady discusses how -driven value creation can help their .

    The digital revolution and mobile have transformed the way people interact with their bank. This trend is set to continue, with new figures revealing that mobile transactions are set to rise by around 121 percent between 2017 and 2022, and average branch visits are set to drop from seven to four per year by 2022.

    Traditional providers have also been faced with the emergence of challenger banks (such as Monzo and Starling), which are striving to capture the attention of millennials with their agile, digital offerings. The territory of the high street stalwarts is being encroached on by the likes of PayPal and Apple Pay, which have disrupted the payments market, traditionally an area that banks have dominated.

    Customers or fans?

    New entrants have energised their customer base to something often more akin to a fan club, often incorporating gamification principles to encourage customers to use their digital platform, with the ultimate aim of improving their customer retention and online customer experience.

    Driving this is the principle of personalisation, and the ability to customise, which promotes a sense of ownership in the game through self-expression. Having experiences that deliver delight, preferably packaged into social media-friendly personalised snapshots, is what drives many consumers.

    As brand loyalty diversifies and consumers want more personalised experiences, these techniques become a great way to attract and retain customers. Personalisation allows businesses to understand why their customers do what they do, and that they share their values.

    Data is king

    However, what is underlying this ability to personalise and drive delight is data. Data has quickly become king. The value of the UK data market is set to hit £1.1 billion ($ 1.58 billion) in 2018, making it the second-largest data market in the world and the biggest in Europe. No longer just a by-product of transactions and interactions, customer data itself has become a valuable commodity that can be used to give insights into customers’ tastes and habits. Learning how to interpret and influence those tastes and habits is one of the keys to unlocking the power, and the value, of data. Being able to offer customised products based on the trends, demographics and insights derived from the data, as well as providing the platform to bring all these services together, is where providers like Atom and Monzo have raced ahead of the field, finding unique ways to gamify the data they collect.

    Whilst data is king, not all data is created equal. The key is deciphering how best to use it to play to your strengths.

    But it is not just these challenger banks that can harness the value of data—retail banking as a sector is uniquely placed to ride this wave of value creation. Purely in terms of reach, whilst 78 percent of UK adults use Facebook, a full 97 percent have some kind of banking product. So the opportunity is there.

    The evolving banking ecosystem

    As a result, the retail banking industry is beginning to broaden in unprecedented ways. This is partly due to multitudinous new and evolving technologies generating, among other things, completely different access to data. All this is spurring increasingly serious conversations around how the future of banking will be shaped. The key to long-term success will be a move away from the monolithic banking model, towards an evolving ecosystem that encourages competition but also supports success for all. And data represents a major monetisation opportunity in this changing environment.

    It&;s critical though that banks play to their strengths rather than forcing themselves into models within which they don’t truly fit. Established banks do not need to emulate the personalisation and game-logic of the challengers to make a success of this new marketplace. That said, without banks taking a different path and creating different offerings, the ecosystem won’t be able to function. Banks need to understand their natural fit within the future banking ecosystem to give themselves the greatest chance for success and ensure the strongest foundation upon which to build a data monetisation strategy. The potential benefits of a successful approach are ample, but starting from a shaky foundation could bring this tumbling down early on.

    What kind of bank do you want to be?

    Our new point of view, which discusses this topic and asks &;What kind of bank are you?&; and &8220;What bank do you want to be?&8221; provokes an inward look at your place within the future retail banking ecosystem. To read the report in full, please email peter.scoffham@accenture.com.

     

    Tara Brady
    Senior Managing Director
    Financial Services, UK & Ireland

     

     

     

    The post How will data shape the future of banking? appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • @fintechna 3:35 pm on August 28, 2018 Permalink | Reply
    Tags: , , banking, , defining, doomed, , , , ,   

    Open Banking: defining moment or doomed from the start? 

    The impending arrival of in Australia may not be news to many in the financial industry. But judging by research we conducted recently, it certainly is to everyday consumers. Of the approximately 2,000 consumers we surveyed, a mere 17 percent were aware the government is implementing new Open Banking laws that will allow them to grant more third parties access to their financial information.

    The poll also showed consumers are concerned about the management of their money and financial data, and that although the whole idea of Open Banking is to have more of that data flowing to companies outside the financial sector so they can use it as a building block for innovative consumer-led products and services, people aren’t necessarily inclined to let that happen in practice. Just 17 percent said they would be willing to share banking data with non-bank third parties—even if they would benefit as a result.

    A question of trust

    All this may seem like a pretty grim indictment of an initiative that’s less than a year away and supposedly destined to reshape the financial landscape. The data certainly indicates there’s some work to be done in terms of educating consumers about what Open Banking entails and its implications. It may even cause some bankers to throw up their hands and wonder whether the whole thing is worth the effort, or dismiss Open Banking as just another regulatory box to tick. But that would be a mistake. And here’s why.

    Australians may be deeply protective of their financial data—but they also seem to trust their with it more than anyone else. Over 80 percent of those surveyed said they would only trust their bank with their financial data, and just 20 percent said they would be open to giving that data to a -up, a large company or a retailer—again, even if there were an incentive to do so.

    Be that as it may, many of these companies will be watching Open Banking closely and looking to develop exciting new products and tools that take full advantage of the new regime. Those products and tools may run up against consumer resistance initially, but if there’s one thing consumers value as much as security, it’s convenience. This is particularly true of an emerging category of banking customer we call the ‘Nomads’: digitally savvy, demanding and accustomed to getting services on demand. These are the needs third parties will be looking to meet—and that banks themselves will increasingly have to deliver on in the future.

    The relative trust that banks enjoy—and the fact that consumers may be slow to share their data with other organisations—gives banks a solid head start in the race to innovate on the back of the data Open Banking makes available. It’s up to banks to maintain and build on that lead by quickly developing targeted, on-demand services that address real customer pain points. Failing to act on the possibilities of Open Banking will eventually result in those customers—and their data—migrating elsewhere.

    Of course, not all Open Banking-based experiments will succeed. But with other organisations trying, and change all but inevitable, a certain degree of boldness is required. Banks shouldn’t be afraid to try, test and fail. These are exciting times for the industry—even if most Australian consumers don’t know it yet.

     

    Accenture at Sibos

    We’ll be discussing Open Banking and other topics at Sibos. Come see us at our booth and join us in the conversation around enabling the digital economy. Keep up to date on all the latest from us around Sibos right here on the blog.

     

    The post Open Banking: defining moment or doomed from the start? appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • @fintechna 12:19 pm on August 24, 2018 Permalink | Reply
    Tags: , , banking, , , , , ,   

    Consumers Have High Expectations of Their Digital Banking Apps 

    want to do more than just hold money. They want their banks to help them meet their financial goals. In fact, a new consumer report by CSI shows that 83% of American consumers agree with that statement. That number jumped to 87% for consumers with an annual household income of $ 100,000 or [&;]
    Bank Innovation

     
  • @fintechna 3:35 am on August 24, 2018 Permalink | Reply
    Tags: , , , banking, , , Cultivate, ,   

    Cultivate your bank to compete in Open Banking ecosystems 

    When an insect searching for food triggers a Venus flytrap, the carnivorous plant reacts within half a second to capture it. It doesn’t have to get ready for that interaction—it’s always ready. need to have the same type of rapid reaction when it comes to partnership opportunities if they are going to thrive in the complex ecosystem of .

    In my last blog, I discussed how traditional banks will likely evolve into various open platform business models to ensure future growth. New entrants like banqUP, Revolut and Starling are already attracting consumers to the concept of marketplace banking—and there are indications that many incumbent banks are getting ready to follow suit. This approach wraps the best money-related apps, products and services from third parties around a robust and well-branded core financial services product (such as a current account or payments) to deliver a richer customer experience and create powerful network effects. Incumbent banks are starting to adopt this model to grow their businesses, making their APIs available to outsiders. These include Barclays, BBVA, RBS, Citi, Santander, Capital One, DBS , Goldman Sachs and others. While our recent research shows that only one percent of banking revenue in the US is being generated by open platforms, it has the potential to rapidly mutate into a Red Piranha flytrap that takes bites out of incumbents’ revenue.

    We&;ve conducted further research to assess where banks stand in their readiness to in the emerging open platform economy—examining three requirements for a healthy and collaborative ecosystem:

    1. Developer portal: the channel environment and experience for developers to interact with bank and customer data
    2. API offerings: the types of banking products and services being exposed as APIs for developers to consume and develop applications around
    3. Developer : the adoption of Open Banking across a broader developer community
    Read the report

    We found that global card services and global financial institutions offer the most advanced and differentiated capabilities across these three dimensions. Banks in southern Europe are differentiated by their platform usability and ecosystem engagement abilities; this explains the relatively higher maturity of developers in these regions. Western European banks seem more focused on exposing APIs that deliver value-added services. Leading digital banks, such as BBVA, which have already made APIs available beyond those mandated by regulations, are presenting various approaches for usage and pricing—a key indicator of developer-portal maturity. Although the developer ecosystems of global banks and card services are clearly ahead of other financial institutions, our research shows that southern European and Nordic banks are rapidly catching up.

    Despite the emergence of more aggressive approaches, the majority of incumbent European banks are only offering those APIs required to comply with PSD2 regulations, and very few are moving into value-add APIs. Fintechs and challenger banks, on the other hand, are working to offer a broad range of APIs and look more like non-financial services platforms, such as Amazon, which offer upwards of 100 APIs for third-party consumption. Also, card services like Visa and Mastercard now offer at least 25 API products that enable a range of services from accessing core business services to advanced data insights.

    Platform banking is still in its infancy, yet we expect to see an explosion of Open Banking APIs from financial institutions in the years ahead.

    Take these steps now to ensure your bank is ready:

    1. Seek out best practices from outside the financial services industry
    2. Develop a strategy to distribute open APIs
    3. Identify the value in going beyond compliance
    4. Introduce transparency in pricing for API consumption
    5. Accelerate network effects through platform innovation

    I invite you to read more about our research and banks’ relative open platform maturity in our report, Competing in the new era: Find value in Open Banking ecosystems 

    The post Cultivate your bank to compete in Open Banking ecosystems appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • @fintechna 12:18 am on August 20, 2018 Permalink | Reply
    Tags: , banking, , , , , Wish   

    Realtime Payments Top Wish List of Banking Innovators 

    are at the top of the innovation for most professionals. According to a survey from TD Bank, released today, 42% of payment professionals cited integration of realtime payments system as the number one factor that could have the greatest impact on the industry. Support for realtime payments is steadily increasing [&;]
    Bank Innovation

     
  • @fintechna 3:35 am on August 15, 2018 Permalink | Reply
    Tags: , , banking, , , , ,   

    Asia Pacific Joins the Open Banking Revolution 

    While Europe continues to advance its transformation triggered by the PSD2 and CMA Open Banking regulation, other countries are observing it carefully and planning their own agendas.

    In , the approach to Open Banking is being driven at a country level and is somewhat fragmented for now. There is no single body of legislation as there is with PSD2 across Europe.

    In some Asia Pacific countries, Open Banking is being driven as a regulatory initiative by governments and central . For example:

    • Australia conducted the Open Banking Review in July 2017 and has imposed a phased implementation of Open Banking by July 2019 for the big four banks.
    • In July 2018, the Hong Kong Monetary Authority (HKMA) published the Open API Framework for the Hong Kong banking sector. The HKMA expects local banks to deploy Phase I Open APIs within six months and Phase II Open APIs within 12 to 15 months.

    Meanwhile, in other countries, the implementation of Open Banking is being led through collaboration across the industry. For example:

    • The Monetary Authority of Singapore (MAS) is not compelling banks to share banking data. However, it sees the benefits to Open Banking and is supporting an organic approach to its adoption. In November 2016, MAS and the Association of Banks in Singapore (ABS) published a Financial Industry API Playbook to guide banks and fintechs in developing Open API-based services. Since then, several banks (e.g., DBS, OCBC) have made their APIs available through external developer portals.
    • In New Zealand, on behalf of the government, Payments NZ is coordinating an industry pilot of Open Banking with participation from the five major banks (ANZ, ASB, BNZ, Kiwibank and Westpac) as well as Datacom, Paymark, Trade Me and Mirco.

    With Open Banking, banks should be considering strategies to both attack and defend.

    Traditionally, banks have been very well vertically integrated, covering all aspects of the value chain—from origination to servicing to risk and balance sheet management. But in the last few years, non-bank fintechs and tech giants have started to disrupt this value chain. Asia Pacific has a huge population of untapped, unbanked millennials who are ready to embrace new technologies and services, making it a very attractive market for these disruptors.

    With Open Banking, banks should be considering strategies to both attack and defend. New digital offerings that are hard to copy and/or can be launched and scaled at speed can unlock new value pools. Yolt in the United Kingdom is a good example of this. In Australia, an Open API integration between NAB and Xero is helping NAB defend its SME business: It enables new service propositions such as cloud-based bookkeeping for their SME customers, including instant online approval for business loans.

    The next battleground for banks in an Open Banking world will be with industry ecosystems. There will be a range of opportunities for banks to partner with other corporates to create new value propositions. These will span a range of industries including telecommunications, energy, transport, retail and leisure, and will target customer journeys in completely new ways.

    The post Asia Pacific Joins the Open Banking Revolution appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • @fintechna 12:18 pm on July 31, 2018 Permalink | Reply
    Tags: , , banking, , , , , , , ,   

    Digital Banking Consumers Still Don’t Fully Trust Online Bill Pay 

    Convenience, not , is why people choose to pay their bills , according to Fiserv’s quarterly report on consumer payment trends. The report, titled “Expectations &; Experiences: Consumer Payments,” was released last week. It revealed that while 59% of surveyed paid bills online, more than half of them said they did not trust the [&;]
    Bank Innovation

     
  • @fintechna 3:35 pm on July 23, 2018 Permalink | Reply
    Tags: , banking, , , , broader, , , , , signaling,   

    Payments: The first key battlefield signaling broader change in US banking 

    Fueled by innovation, the US market is undergoing tectonic shifts. Many players are looking to as a crucial for . Incumbents— and established fintechs, such as networks and card processors—have transformed the transactions environment over decades for the benefit of end users. New generations of players, both partners and competitors, have used digital business models to enhance the customer experience and open the door to new segments and revenue sources. Now, with the growing influence of Amazon, Apple, Google, Facebook and other similar big (bigtech) firms, along with increasing customer sophistication and ongoing overseas disruption, the fundamental aspects of revenue drivers and share are in question.

    The storm beneath the surface

    Accenture examined potential trajectories of current trends, which could present revenue challenges for US banks in payments. Our analysis indicates that incremental revenues are projected to accrue primarily to non-banks over the next few years. The beneficiaries include players already in the value chain (those less exposed to customer demands, such as rewards, and with more direct access to key platform levers, like processing) and new forms of fintech, bigtech and other third parties phasing into the market.

    Figure 1: US payments revenue ($ BN)
    Source: Accenture research and analysis

    US disruption is anticipated to differ from that faced in Asia, Europe or other markets where the external impetus—competitive or regulatory—is accelerated and often direct. At least initially, established players may be situated to benefit financially; as evidenced by ApplePay, it can take years for new, disruptive platforms to scale. For those who are unprepared, gradual pricing pressure and value leakage may begin to erode many existing business models.

    Open to change

    Of course, a wide range of scenarios are possible for the future of US payments with several factors much than payments (including artificial intelligence, , cross-border transactions, major geopolitical movements, Open Banking, privacy, regulation and security) at play. Recognizing the range of potential outcomes, US payments players have the ability to position themselves for success.

    Incumbents have already begun moving to protect their revenue base by introducing innovative solutions, such as Zelle. Going forward, technology deployment needs to happen faster with more agile adoption and monetization of technologies, such as data analytics, blockchain, and AI/machine learning, that can rewrite the payments equation. These new technologies offer a pathway to optimize the go-to-market model, breaking down silos to improve revenue and efficiencies internally and value chain orchestration externally.

    Banks and other payments players can increase relevance by focusing on the customer journey and use cases to add value. Amazon Go, a new kind of technology-based retail store from Amazon, is just one example of looking in and beyond the existing value chain to rethink the customer experience. If incumbents view the customer as the North Star and are open to all that is possible, then they, too, can be disruptors, instead of the disrupted.

    Change can be challenging. However, payments players are in the fortunate position to be able to write their own story. Now is the time to do so.

    I invite you to read our report, Driving the Future of Payments

    Special thanks to Tom Skomba, who contributed to this blog.

    The post Payments: The first key battlefield signaling broader change in US banking appeared on Accenture Banking Blog.

    Accenture Banking Blog

     
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