P2P may be growing fast for #banks, but that doesn’t mean #Venmo is giving up the P2P throne. Venmo users sent $ 8 billion in P2P transactions through the service in the second quarter, PayPal reported during its earnings call yesterday. This marks a more than 100% increase from this time last year, when Venmo users […]
Bank Innovation
Is PFM dead? If not, financial institutions should kill it, and move on to financial management features that will really help customers, according to a report on the subject released this week by financial consulting firm Celent. Report authors Dan Latimore and Stephen Greer make the argument that #banks shouldn’t be focusing on PFM, so much […]
Bank Innovation
In this episode, host Brett King celebrates the 200th episode of #Breaking #Banks by taking a look back over the show’s history. King is joined by some of the show&8217;s regular guests during this episode, including Chris Skinner, Dave Birch, Ron Shevlin, and Sam Maule. The group discusses some of the best moments from previous […]
Bank Innovation
The #PSD2 regulatory technical standards for strong customer authentication (SCA) and secure communication (SC) are proving difficult to finalize. Circulated in draft in 2016 for consultation, the EBA published its final draft in February 2017, followed by amendments requested by the European Commission, subsequently rejected by the EBA in June 2017.
The key sticking point is the use of screen scraping. Although PSD2 is #technology-neutral, the EBA banned screen scraping in its final draft, whereas the EC wants to allow it (on a contingency basis).
As it stands, agreement on the final text for the RTS between the EBA, EC and European Parliament may extend into August or September 2017, and with RTS coming into effect 18 months later, now Q1 2019 is the earliest.
PSD2 itself comes into force on 13 January 2018, and while there has always been a well-flagged gap from this date to when the RTS for SCA/SC come into force, the confusion over finalizing the RTS has led some PSPs to question if PSD2 itself will be delayed.
However, PSD2 is still slated to become law across the EU in January 2018, and PSPs have to be compliant with it by then. In the EC’s amendments to the draft RTS, their accompanying explanatory notes state that the RTS and security aspects of PSD2 articles 65 (confirmation of funds), 66 (access for payment initiation), and 67 (access for account information) are applicable from the same date as the RTS, which may have led some to believe the EC wants these key articles on account access to be delayed.
However, the EBA’s rejection of the EC amendments notwithstanding, it is only the RTS and security aspects of these PSD2 articles that the EC wants to apply from 2019, not the whole of each article—the rest of the provisions in these articles would still be mandatory from 13 January 2018.
In fact, the reality is that the final draft of the RTS is not law until the EC, EBA and EP (parliament) are in agreement, so as it stands now, all provisions in all PSD2 articles are applicable from January 2018.
#Banks/PSPs may have bilateral agreements with TPPs after January 2018, but they must also allow access to TPPs without a contract as well.
If a bank is not ready with APIs by January 2018, it’s OK—provided they allow screen scraping. But they risk being excluded from TPP services that only use APIs, giving an advantage to competitors who do provide APIs.
However, PSD2 compliance is independent of these challenges, which do not impact the need to be compliant in January 2018.
To request a copy of our detailed report on the impact of PSD2 RTS, please contact Lakshmi Kv or Jeremy Light.
The post PSD2: Scoping out the impacts of the RTS appeared first on Accenture Banking Blog.
I’ve been a big Doctor Who fan since I first cowered behind my parents’ sofa in Scotland in the early 1970s, hiding from the Daleks. From the original black and white 1960s series to the recent news that, for the first time, the 13th Doctor will be a woman, the sci-fi series has continually reinvented itself to remain relevant to new audiences. One secret to its success has been the Doctor’s ability to regenerate into a completely new character every 2 to 3 years. Originally an elegant solution to the failing health of the first actor to play the role, regular regeneration has ensured that the writers have had the flexibility to take the show in different directions.
Read the report
If only it were that easy for #banks to reinvent themselves! Instead of a flash of light and a miraculous rebirth, it’s becoming increasingly obvious that to win in the digital economy, banks not only need to have the right business strategy, they also need to #master the discipline of continuously reinventing themselves. Instead of the #change being a Doctor Who-like episodic and disruptive process, the ability to change and adapt needs to be part of the core DNA of the #bank.
In Accenture’s recent 2017 Banking Change Survey, we asked more than 300 executives about their change priorities, how they embed change in their organisations, and the outcomes they are achieving. The study showed that those who have focused on change as a core capability—our ‘change leaders’—are seeing better results across a range of areas from cost control to customer service. The only category in which change leaders were not advantaged was product and service innovation, where it seems that too much change discipline may hinder spontaneity and creativity to some extent.
The leaders don’t treat change management as an ‘add on’ to other programs like network transformation or IT re-platforming. Instead, they view change management as a distinct discipline that not only ensures that they do the things they need to do, but also have the capacity to execute business strategies that will truly differentiate them. Cristoforo Avagliano, an executive at BNP Paribas, summed it up this way: “You have mandatory change because of regulation, you have change because of what competitors are doing, and then you have another kind of change: to catch the latest trends and what the customer is asking of you, but also what the customer has not asked for, but which you imagine. This is the change that can deliver the greatest economic benefit.”
More broadly, change leaders tell us that they have gotten comfortable with the need for rapid, non-stop transformation. While M&A or other disruptive events can occasionally create an opportunity for a Doctor Who-style radical regeneration, the reality for most banks is that superior performance requires them to master the less glamorous, but demonstrably vital process of continuous improvement.
To learn more, read our full 2017 Banking Change Survey.
The post Discover how your bank can become a change master appeared first on Accenture Banking Blog.
#Banks are taking the battle for millennial customers where it belongs: #mobile. Citibank and JPMorgan #Chase users will now be able to link cards to #PayPal via mobile, allowing customers of both banks to add cards before paying online and in-store via the PayPal mobile wallet, both banks announced today. These new mobile capabilities also […]
Bank Innovation
SAP, which once hoped for a Big Bang #core banking replacement, is now looking for piecemeal change with APIs and modules, perhaps provided in the cloud.
Financial Technology
The number of #consumer #mobile #banking #apps available is continuing to #grow, but #smaller #banks are getting left out of the race. That is according to the July Monkey Insights report, released today by Malauzai Software. Consumer mobile apps grew about 6%, in keeping with last year’s growth, according to the report. This slower growth […]
Bank Innovation
#Open #APIs have been advancing steadily across the banking landscape for a number of years, though just how “open” may be a point of conjecture. Many of the European neobanks have done it, such as Monzo and Fidor, and in Europe, where PSD2 is set to take effect next year, the issue is especially pressing. […]
Bank Innovation
In this episode, the show highlights four of many #Fintech fighters that are working to make the system better, smarter, faster, cheaper, and more honest. First up is Neobank hero Norris Koppel, the founder of Monese, which was started out of his own need to open a bank account as an immigrant. Like many heroes, […]
Bank Innovation
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