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  • user 3:35 am on September 23, 2018 Permalink | Reply
    Tags: , , , banks, , frontiers, , , ,   

    New private banking frontiers: mobile apps, convenience & personalization 

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

    #Mobile #apps 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 #robo-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

     

  • user 3:35 pm on September 21, 2018 Permalink | Reply
    Tags: , , banks, ,   

    The art of Open Banking regulation 

    Taking Europe as a blueprint, other jurisdictions are now using #Open #Banking 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 #banks’ 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 #regulation? 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

     

  • user 3:35 pm on September 18, 2018 Permalink | Reply
    Tags: , , banks, , ,   

    How will data shape the future of banking? 

    Guest blogger Tara Brady discusses how #data-driven value creation can help #banks #shape their #future.

    The digital revolution and mobile #banking 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 [email protected].

     

    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

     

  • user 9:53 pm on September 12, 2018 Permalink | Reply
    Tags: AssetBacked, banks, , , , ,   

    Using Blockchain To Record Asset-Backed Securities 

    Asset back #securities is ripe for #blockchain with just a few #banks active in the market and outdated #record-keeping on paper and Excel.
    Financial Technology

     

  • user 3:35 am on September 8, 2018 Permalink | Reply
    Tags: , , banks, , , ,   

    Q2 2018: US credit card issuer snapshot 

    Each quarter, Paul Sammer, Manager in the #Card Issuing offering, compiles key metrics on US consumer #credit cards, tracking spend, receivables, loss rates and returns reported by the largest US #banks.

    US consumers are showing an increased preference for credit cards.  Banks reported robust growth in purchase volume over the past quarter, along with solid growth in receivables and benign loss rates. Read more about the key themes and notable happenings below.

    Key themes

    • Banks reported favorable credit trends in the past quarter as purchase volume and receivables continued to grow, and loss rates remained benign.
    • Credit card purchase volume increased at a significant pace over the past year, led by Capital One, American Express and Chase.
    • Receivables also grew at a healthy rate, most notably at American Express, Capital One and Discover.
    • New products and product refreshes were prevalent in Q2. Many of these new products are offering high-value incentives to open/activate.
    • Investments in digital capabilities are evident across the industry with new all-digital products (e.g., Chase’s Finn), and full-service functionality in digital channels.
    • Bank of America and Chase reported notable declines in card originations in the past quarter (nearly 10 percent YoY).
    • Issuers pointed to rewards (and associated cost) as a basis of differentiation, but there was a general theme of rational competition in most respects.

    Notable happenings

    Transactions

    Citibank completed $ 1.5B acquisition of L.L. Bean credit card portfolio from Barclays; Synchrony and PayPal finalized transfer of $ 7.6B in receivables; Signet Jewelers closed last phase of credit outsourcing, selling its non-prime portfolio to CarVal Investors and Castlelake.

    New Partnerships

    Alliance Data and IKEA introduced new co-brand offering 5 percent rewards on IKEA purchases; American Express announced new partnership with Amazon to offer a small business co-brand credit card; Wells Fargo launched no-fee Wells Fargo Propel American Express card.

    Partnership Developments

    In July, Walmart announced its intent to partner with Capital One and end its Synchrony relationship; Citibank renewed its card partnership with Sears, paying $ 425 million up front in a highly customized structure; Alliance Data and Victoria’s Secret renewed their PLCC partnership.

    New Products/Features

    American Express launched its no-fee, 1.5 percent cash back Cash Magnet card; Citi and American Airlines introduced new no-fee AAdvantage MileUp card, offering 2 miles per dollar; Chase and Hyatt introduced $ 95 annual fee World of Hyatt Card; Chase and Marriott introduced $ 95 fee Marriott Rewards Premier Plus card; Chase and Southwest Airlines introduced $ 149 annual fee Southwest Airlines Priority Card; Synchrony and Belk will introduce a co-brand credit card.

    Mobile & Tech

    Chase announces a partnership with Tock, a high-end dining program.

    Stay tuned for next quarter’s report on US consumer credit card trends.

    Industry trends (based on non-retail card issuers in scorecard section)

    1 Total receivables for non-retail issuers at end of 2Q18. 2 Total purchase volume of non-retail issuers in 2Q18. 3 After-tax ROA excludes Wells Fargo, Chase, Bank of America and US Bank, which do not report credit-specific income. 4 YoY = Year-over-year change versus 2Q17. 5 QoQ = Quarter-over-quarter change versus 1Q18. Note: Purchase Volume is reported volume for the quarter (it is not annualized or TTM)

    #Issuer Scorecard—Q2 #2018 ($ in Billions)

    1 Chase no longer discloses an ROA measure directly attributable to Card Services. 2 Citigroup: Purchase volume includes cash advances. Citigroup data includes Citi-Branded Cards and Citi Retail Services. 3 Capital One: US card business, small business, installment loans only. Purchase volume excludes cash advances. 4 Bank of America: Receivables, purchase volume and net loss rates are for US consumer cards. 5 Discover: includes US domestic receivables and purchase volumes only. Restated: ROA reflective of Direct Banking segment (credit card represents ~80% of loans) and implied US Cards tax rate of ~22%. ROA denominator estimated from total loans ended figures. 6 American Express: Changed reporting method as of 2Q18. All figures except ROA are for US Consumer segment; Amex has stopped reporting net income attributable to US consumer segment. ROA is estimated based on US receivables comprising 88% of Global Consumer segment and 22% US effective tax rate. 7 US Bank: Net Income attributable to Payments Services totaled $ 361M as of 2Q18, compared to $ 282M in 2Q17; Payments Services includes revenue from consumer credit cards, as well as commercial revenue and other sources. 8 A/R and PV for Retail Card unit only. 9 Loss rates and ROA include all of SYF’s business lines (i.e., Retail Card, Payment Solutions, and CareCredit). Retail Card accounts for about 70% of total receivables. 10 Average Receivables.

     

     Paul Sammer, Manager, Payments

     

     

     

    The post Q2 2018: US credit card issuer snapshot appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     

  • user 12:18 pm on September 7, 2018 Permalink | Reply
    Tags: banks, , LendingHome, , ,   

    Why the Mortgage Platform LendingHome Isn’t Partnering With Banks 

    There are advantages to both sides for #banks to partner with #mortgage solutions, but one of the U.S.’s largest digital mortgage companies told Bank Innovation why they aren’t #partnering with banks. #LendingHome, which has originated $ 3 billion in loans since 2014, says there need not be a rush for digital mortgage servicers to partner with […]
    Bank Innovation

     

  • user 12:18 am on September 5, 2018 Permalink | Reply
    Tags: banks, , , , , ,   

    Which Fintech Companies Have Over 1 Million Customers? 

    #Fintech startups, particularly neobanks, have long suffered from having great #technology, but few #customers using it. Simple and Moven had more innovative offerings than traditional peers, but that didn’t translate to more customers or more revenue. What was BBVA paying for when it bought Simple for $ 117 #million in 2014? It wasn’t the customers, which […]
    Bank Innovation

     

  • user 3:35 pm on August 28, 2018 Permalink | Reply
    Tags: , , banks, defining, doomed, , , , ,   

    Open Banking: defining moment or doomed from the start? 

    The impending arrival of #Open #Banking 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 #banks 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 #start-up, a large #technology 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

     

  • user 12:18 am on August 28, 2018 Permalink | Reply
    Tags: , banks, , , , ,   

    3 Notable VC Rounds in Alternative Credit 

    #Fintech funding this year has been on the rise. In the second quarter alone, funding for financial #technology companies around the world reached $ 20.3 billion in nearly 400 deals. Right now, venture capital firms, #banks, and investors are pouring funds into companies Artifical Intelligence, the clear flavor of the year. But AI means more than chatbots […]
    Bank Innovation

     

  • user 12:18 pm on August 25, 2018 Permalink | Reply
    Tags: banks, , , , , , ,   

    Realtime Push Payments Can Increase a Bank’s Revenue, Mastercard Says 

    As gig workers and small businesses continue to grab a larger market share of the economy, more #banks and FIs might want to consider card-based #push #payments as a way to grow their debit business. This suggestion comes courtesy of #Mastercard. “And by growing their debit business, #realtime push-payments can help banks generate more revenues,” […]
    Bank Innovation

     

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