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  • user 12:50 pm on November 23, 2018 Permalink | Reply
    Tags: , Blockchain, , ,   

    How Fintech Has Improved the Foreign Exchange Market 

    From the use of artificial intelligence to bank apps to chatbots, has become a behemoth force to reckon with in today’s world.

    Fintech was coined from “Financial ”. It simply refers to the use of technology across all functions and facets of financial services.

    It is impossible to disregard Fintech as a solid aspect of change in the world today.

    All trends also indicate that it could only get better.

    Particularly, the foreign sector is enjoying this advancement in technology. Those conversant with the foreign exchange sector can attest to the revolution and scalability associated with fintech.

    It is pertinent to note that foreign exchange is not Forex. Forex refers to a decentralized global market where the currencies in the world are traded with leverage. Forex is also referred to as currency trading.

    Foreign exchange on the other hand, is the conversion of different currencies. Here, no leverage is involved. This does not mean foreign exchange cannot generate profit as a business.  With a good understanding of the pros and cons of the financial market, it is highly lucrative as well.

    How Fintech Has Made the Foreign Exchange Market Better and Stronger:


    • A Drastic Reduction in The Cost of Foreign Exchange Fees

    A major challenge for many that deal with foreign exchange frequently is costs required in executing transactions. Such transactions include transfers and remittances. Fintech has worked in this space to cut down the costs associated with foreign exchange. This advantage is not only beneficial to only customers, but to the as well. Fees have drastically reduced and networks now easily render services that were out of their capacity in previous years.  The access of customers to smartphones is also a major plus for the fintech industry, as processes could be carried out in a matter of seconds.

    As a result of the drastic reduction in dealing with foreign exchange, several people are drawn to this market. Hence, there is an overall boom and the market gets more stable with every new fintech development.

    For cross-border remittances, minimization and elimination of fees is now possible. This is all possible; thanks to fintech.

    Fintech has helped in getting closer towards achieving the United Nation SDG of a global 3% transaction cost.


    • Reduction of the Incidences of Fraud in dealing with foreign exchange

    All of over the world, financial institution experience all kinds of fraud attacks. In the foreign exchange sector especially, fraud is still a thorn in the flesh. In today’s fintech powered world, devices can be tracked and traced after certain transactions with foreign exchange.

    Biometrics like vocal patterns, facial recognition, thumbprints and irises are now used for authentication. These kinds of verifications can also be performed on the user’s smartphone. Online payment apps are taking advantage of fintech in this respect.


    Trust is necessary for dealing in the foreign exchange market. The blockchain which is highly trusted, has entered the fintech space. In Blockchain, no historical data can be altered without a generalized agreement from all participants of the network. A system administrator or a user in a single entity can’t make changes to the data on a blockchain without having an agreement from every participant. This provides a perfect platform trading and reduction in criminal activities, as nothing is done in the hidden.



    • Artificial Intelligence

    Gradually, problems of money laundering are going into extinction. The anti-money laundering departments of many banks now use artificial intelligence. Machine learning is also helpful. This is because fintech has helped in combating laundering as well as other frauds. The availability of data in the technological space makes it easier. Although, there are several hindrances, the process is steadily at work. Fintech’s relevance in foreign exchange continues to evolve. Fintech is moving to the point of being at the very center of foreign exchange. Reaching that milestone will indicate real progress.



    Indeed, with fintech, the world’s finance has taken its place within the sphere of this “global village”. It is more important that the world at large embraces and understands the advancement in fintech.


    [linkedinbadge URL=”https://www.linkedin.com/in/demioye” connections=”off” mode=”icon” liname=”Demi Oye”] Demi Oye is Freelance Writer in Fintech

  • user 6:53 am on October 17, 2018 Permalink | Reply
    Tags: Blockchain, , , , , , , , Volumes   

    DTCC Shows Private Blockchain Can Handle US Equity Trade Volumes 

    capacity has been measured in public blockchains, where transaction rates have been very slow. showed that a permissioned distributed ledger can high .
    Financial Technology

  • user 3:35 am on October 5, 2018 Permalink | Reply
    Tags: , Blockchain, , , , ,   

    The need for change in trade finance 

    The role of the bank in the industry has historically been to satisfy four main areas:

    1. facilitation of secure payment execution
    2. provision of finance
    3. management of data and information
    4. mitigation of risk

    In today’s market all these services are available through non-bank service providers, posing a threat to the trade finance establishment.

    The over-reliance on paper and manual checks means that the current processing of transactions is fraught with inefficiencies and risk, which ultimately leads to higher costs. often seek to protect their margins in traditional trade finance by passing these costs on to the corporate client, driving such clients towards open account trade that is riskier but cheaper.

    This is a unique moment in our industry, when changing regulation, increased availability of emerging and changing expectations from corporate clients are pushing banks to their business models beyond the simple digitization of current processes.

    In a sector particularly vulnerable to fraud, letters of credit, standby-letters-of-credit and other trade finance instruments are used to ensure exporters are paid on time by importers. Meanwhile, banks guarantee that importers receive goods that match the terms of the letter of credit. Bank-intermediated trade provides confidence and fosters trade around the world while providing banks with a low-risk source of revenue that is capital efficient under Basel III.

    However, this business is undergoing deep changes:

    • Globalization of the economy has increased knowledge of international trade, helping corporates to better understand cultural and local market requirements in emerging markets. The ability of corporate clients to be self-sufficient in mitigating some of their transaction risk has fueled the shift to open account financing. Although this type of financing does not guarantee payment in the same way a letter of credit does, it is faster, cheaper and relatively frictionless in comparison to a LOC. The emergence of multiple solutions for clients is now calling for a client-centric approach.
    • Digitalization tends to change corporates’ expectations. Corporate treasurers are younger than ever before, and their experiences in shopping and conducting other personal business lead them to expect the same kind of experience in their professional endeavors. They are increasingly looking for an end-to-end digital experience, encompassing communication and documents, advanced reporting and tailored product and service offers. In parallel to client experience, digitalization is a great way to improve employee experience and strengthen the bank’s compliance and risk monitoring.
    • Particularly in emerging markets, there is a shortage of financing available for small to medium enterprises (SMEs); this is due to the retreat by global banks from these countries and a lack of liquidity and correspondent banking relationships for local banks. Over 60 percent of SMEs in emerging markets are rejected for financing and nearly 30 percent do not reapply according to the ICC. In the volatile and rapidly changing world of trade policy the to build shorter, more agile supply chains is even more pressing and the creation/participation in “marketplaces” becoming a real opportunity, in particular for SMEs.

    Out of this mix of social, technological and regulatory change, next-generation trade platforms and processes are emerging. Distributed business models, which no longer rely on banks being central to the financial supply chain, mean that those institutions are looking at ways to retain their relevance to corporate clients. Traditional competitors are collaborating through consortia of ecosystem players, working for the benefit of the entire industry instead of being self-serving in their approach.

    In the second part of this series, we will look at how and other technologies are helping banks rethink and redesign their approach to trade finance.

    Join me at Sibos 2018, as I moderate the “Delivering the trade environment of the future” roundtable. Register here.

    The post The need for change in trade finance appeared first on Accenture Banking Blog.

    Accenture Banking Blog

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

    Using Blockchain To Record Asset-Backed Securities 

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

  • user 3:36 am on September 11, 2018 Permalink | Reply
    Tags: , , Blockchain, , , , ,   

    Beyond plastic: Payments in a connected world 

    Guest blogger Jeff Crawford, Senior Manager with extensive experience in digital and mobile , discusses how the Internet of Things and commerce introduce new payments opportunities for existing players and new entrants.

    Gone is the where a watch just keeps time and a refrigerator simply preserves food. From wearables and smart speakers to smart appliances, connected cars and , the Internet of Things (IoT) has gained the attention of consumers and businesses alike. At its most basic level, IoT is the network of “smart”, connected devices or products that enable new forms of communication and new experiences. The global IoT market is estimated to grow to $ 2.9 trillion with 20 billion connected devices by 2020.¹

    IoT devices, combined with emerging payments capabilities, facilitate a connected commerce experience, providing consumers with a convenient way to transact by incorporating shopping and payments functionality into devices. For example, Amazon has enabled its customers to make purchases via its Echo devices using Alexa voice commands. Through the Groceries by Mastercard program, consumers can purchase grocery items through their Samsung refrigerators and have them delivered by the program’s grocery delivery services partners. Ford and ExxonMobil maintain a partnership to allow consumers to make Speedpass+ fuel payments through their in-car infotainment system.

    The physical device is only one component of the infrastructure required to support IoT payments. It also must include a user interface, which is often a screen, but may also be a button, voice interaction, or geo-location. The IoT device must establish and maintain connectivity to a back-end platform that receives the data; this connectivity may be supported via Wi-Fi, Bluetooth or LTE. Payment credentials must be tokenized and maintained in a secure environment, either locally or in the cloud, and security is embedded through advanced authentication, often in the form of biometrics (such as voice command).

    IoT payments require a coordinated effort through the device manufacturers, payment providers and integration partners. Visa and Mastercard are seeking to accelerate IoT payments engagement and enablement as part of the companies’ respective digital payment readiness programs, Visa Ready and Mastercard Engage. Both efforts have focused on facilitating secure payments across the value chain and connecting IoT device manufacturers to financial institutions. Discover and American Express have also linked payment tokenization platforms and security protocols to third-party products (namely, wearables) to enable their cardholders to take advantage of IoT-based products and services.  Such market activity represents a logical progression for payment networks to push new use cases for their tokenization offerings.

    As expected with any new payments technology, IoT payments have a heavy focus on security. Large chip manufacturers (including NXP and Intel) have entered the space, providing secure elements to store payments credentials. Other entrants focus on innovative methods of enhancing payments security. MagicCube, which names Visa² and Mastercard among its partners, offers device manufacturers a trusted execution environment (TEE) security platform to provide payments security in lieu of a secure hardware element or software-based encryption.

    It was not long ago that consumers, issuers, processors and networks were responsible for maintaining and securing only a single payments device: the card. As smart phones, refrigerators, watches and cars, among other things, become payment devices, card volume should start to migrate from the physical card to digital payments via IoT devices. Issuers must focus on developing strategies to ensure their cards remain top-of-wallet for consumers who make IoT purchases. Card networks are likely to continue facilitating partnerships with device manufacturers to optimize use of the emerging technology.

    For traditional card processors, there may be an opportunity to enhance the processing of solutions with features to support device management. For example, card processors might use a data field that tracks the device (card, phone, watch, refrigerator) and authentication method used to make a payment, thereby increasing the opportunity for more insightful customer analytics. There may also be opportunities for alternative, non-card payment mechanisms (real-time payments, /distributed ledger-based, and such) to take hold. We expect IoT payments to remain a key source of value, innovation and growth for both traditional payment providers and new market entrants.

    I invite you to read more about Accenture’s capabilities and offerings in the IoT and Connected Commerce space.

    Special thanks to David Cencula, who also contributed to this blog.

    1 https://www.gartner.com/newsroom/id/3598917
    2 Visa is also an investor in MagicCube 


    Jeff Crawford, Senior Manager, Payments





    The post Beyond plastic: Payments in a connected world appeared first on Accenture Banking Blog.

    Accenture Banking Blog

  • user 12:18 am on September 11, 2018 Permalink | Reply
    Tags: Blockchain, , , , , Lightyear, , Stellar   

    Interbank Blockchain Stellar Receives Boost as Lightyear Buys Chain 

    Competition and consolidation are heating up in the space. , a startup that raised more than $ 40 million from the likes of Fiserv and Citigroup, has been acquired by .io, a company that works on the interbank blockchain, the companies announced today. Chain and Lightyear will combine to form a company called Interstellar. [&;]
    Bank Innovation

  • user 12:18 am on August 29, 2018 Permalink | Reply
    Tags: Blockchain, , , , , , ,   

    Financial Services Has More Blockchain Projects Than Any Sector, PwC Says 

    When it comes to , the has distributed ledger any other industry. A new survey, released by accounting firm PricewaterhouseCoopers today, found that among all industries, including healthcare and energy, financial services stood out as the one with the most blockchain-based initiatives. In all, 46% of FI executives polled [&;]
    Bank Innovation

  • user 12:18 pm on August 14, 2018 Permalink | Reply
    Tags: , Blockchain, , Checkbook.io, , , Headway, ,   

    Digital Check Solution Checkbook.io Makes Headway in Auto Finance 

    Baxter Credit Union, based in N.J., has found a new to an old, and costly problem. David Brydun, vice president of consumer lending, exclusively told Bank Innovation that the financial institution has partnered with on a issuance solution that utilizes . “A lot of what goes on in digital lending is [&;]
    Bank Innovation

  • user 12:18 am on August 6, 2018 Permalink | Reply
    Tags: , , Blockchain, , , , ,   

    Banks Still Searching for Practical Applications for Blockchain Technology 

    It might seem like has been all the rage among and companies, but a recent Bank Innovation poll found that many of these companies don’t have any blockchain projects in the current pipeline of their innovation initiatives. When asked to describe their company’s involvement with blockchain , 30% of the poll-takers said [&;]
    Bank Innovation

  • user 3:53 am on July 31, 2018 Permalink | Reply
    Tags: , Blockchain, , , ,   

    CLS And IBM Launch Blockchain App Store With Banks And Fintechs 

    CLS and IBM have developed a secure environment for and to create and share apps.
    Financial Technology

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