Tagged: Catalyst Toggle Comment Threads | Keyboard Shortcuts

  • @fintechna 3:35 am on April 22, 2017 Permalink | Reply
    Tags: , , , , , , , Catalyst, , , , , , ,   

    Virtual cash management: A catalyst for new business models for European transaction banks 

    are in the midst of a &;perfect storm&; of negative interest rates, regulatory pressures and market disruption, and are in search of new sources of value. A recent Accenture roundtable discussion concluded that European banks have the opportunity to develop innovative banking offerings using accounts, such as virtual , to address changing market needs and create new business .

    Jeremy Light, Head of Accenture Payments, EALA, speaking at the breakfast roundtable.

    The roundtable, co-hosted with Cashfac (a leading cash management provider), was organized in Amsterdam on January 31st, 2017 and saw participation from industry leaders from European transaction banks, as well as a trade body and a .

    Accenture led the discussion by providing insights on the evolving transaction banking landscape and the promise of virtual cash management, and explored the role virtual accounts can play in driving a growth strategy for banks. Cashfac demonstrated the key capabilities enabled by its proprietary &;Virtual Bank Technology&; and illustrated how it has enabled transaction banks and corporate treasurers to realize their strategic ambitions.

    Key takeaways from the discussion include:
    1. The potential of virtual accounts goes beyond liquidity management solutions and alternatives to notional pooling to address Basel III capital requirements. Together with open APIs (catalysed by PSD2) and instant payments, virtual cash management enables better management of payments, efficient collections, data insights and self-servicing capabilities. In essence, virtual accounts can be a key driver of the digital agenda for transaction banks while supporting innovation in corporate treasury products and services.
    2. Strategic growth objectives for transaction banks can be enabled using virtual cash management, allowing increased client acquisition. Banks can evolve as regional or global champions using virtual accounts (including through white labelling to other banks) to provide account and other value-added services remotely across borders. At the same time, virtual accounts can be used in new ways to power innovation and new business model propositions (e.g. line of credit offered via consumer travel cards or assigning individual accounts to taxi drivers working for taxi platform companies, for administrative efficiencies and value-added services).
    3. As an emerging innovation, the uptake of virtual accounts in Europe will depend on the impetus of the transaction banks in driving customer advocacy. While corporate treasurers might have some reservations on changing established and stable business processes, the long-term benefits of such solutions will be widely felt once there is enough understanding and adoption amongst the corporates.
    4. There is no &8220;one size fits all&8221; approach for using virtual cash management. The solution of choice for each bank must be qualified based on the specific characteristics of its client segments and local market considerations. As an illustration, in the real estate market, commercial rents are often a combination of different funding components such as rent, insurance, tax, fees, resulting in reconciliation challenges. Banks serving providers in this market should prioritize accounts receivable solutions for these client segments that can bring efficiencies in collections and allow easy administration.
    5. While the promises and benefits of virtual cash management are evident, there are clear ‘known-unknowns’ in areas such as tax, legal implications, KYC (know your customer) and data privacy rules that must be further explored. As market participants wrestle with such questions, the consensus is that incumbent transaction banking players must act with urgency and innovatively—to realize the full opportunities presented by virtual cash management.

    The post Virtual cash management: A catalyst for new business models for European transaction banks appeared first on Accenture Banking Blog.

    Accenture Banking Blog

  • @fintechna 3:35 am on September 19, 2016 Permalink | Reply
    Tags: , , , , , , , Catalyst, , , sandboxing,   

    BREXIT – A Catalyst For Blockchain Technology? 

    — this topic has been in everyones mind for the prior weeks as I traveled across Germany and the US, not only in financial services. Nevertheless, today the first shock in financial services has gone and according to my opinion the Brexit has the potential to become THE game changer for implementing — fast track. Not only in financial services.

    &;We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten.&; &; Bill Gates

    But why? Currently London is to the European Union as Manhattan is to the United States. But why is London so important for Financial Services in Europe? European finance depends on the „City“, not to mention London’s dominance of financial services in UK: London is representing 9.6% of the United Kingdom’s GDP. Globally the FCA is one of the most innovative regulators, not only in terms of and for Startups. According to my opinion, passporting, sandboxing and a new EU bureaucratic for the UK could be the game changer in terms of Blockchain.

    First: What’s passporting?

    To break it down: when you get a license for financial services in one country, you are able to passport this license to other countries, meaning you don’t have to spend money on applications for each country, learning different languages and wait to got through the bureaucratic application processes for all the European member states. A great approach for global acting financial institutions — with this approach London established itself as a financial service gateway to the European Continent.

    Second: What&;s sandboxing?

    The UK regulator, the FCA, established a safe space for FinTech startups, where businesses can test innovative products, services, business models and delivery mechanisms. Means building new businesses in a live environment without immediately incurring all the regulatory consequences. Linked to this approach for FinTech Startups, the FCA established a safe space for Blockchain Startups early 2016 as well. Blockchain Startups should experiment in a safe environment with financial service technology. All the efforts are underlined by the support of the Central Bank of England — the Central Bank of England has taken steps to explore the potential of Blockchain Technology as well.

    Third: This brings me to the point >> passporting, sandboxing and a new EU bureaucratic for the UK could be the game changer in terms of Blockchain and Brexit, but why?

    Taking the real opportunity for the UK and the European Union is to use the current time of uncertainty of leaving the EU to take action. Action in terms of implementing a new technology. For instance currently it is rather uncertain that global will keep the passportability of their licenses as well as staying in the UK. Banks need new incentives for staying in the UK.


    From Pixabay

    To break it down shortly — incentives for Banks and the UK in relation to Blockchain could be (extract):

    &8211; Value Innovation — using sandboxing for establishing new standards to record, exchange, and trade assets as well as liabilities. Replacing traditional exchange and centralized markets as well as lowering barriers for business creation

    &8211; Re-Architecting the EU bureaucratic — implementing a document formation and management system for self-enforcing contracts (so called smart contracts) between the EU und UK

    &8211; Rebuilding Government and Democracy — rekindling the public’s trust in political institutions in the UK by establishing greater transparency and accountability in voting on the Blockchain

    New difficulties, but also great opportunities arise in our digital interconnected world between the EU and UK. London and the UK must act and innovate &8211; more than ever &8211; to ensure London’s preeminence as a global financial hub.

    The potential is big: the FCA has an innovative approach for Blockchain Startups and Banks — trial and error: this is unique in the European Union and might be one reason for Banks staying in the UK.


    From Pixabay

    sandboxing: this is unique in the European Union

    Nevertheless, the Brexit was a defeat for the European Idea, but every defeat makes you stronger, learn from the past, adapt the future, be innovative and just try. The Internet of Information was just the start, the Internet of Value has the potential for changing our whole life:

    Stand up Europe and implement the Blockchain Technology!

    Source: Own Research/ Ideas, Forbes, Fortune


    This article first appeared on LinkedIn Pulse. Featured Image: Pixabay

    The post BREXIT &8211; A Catalyst For Blockchain Technology? appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

    Fintech Schweiz Digital Finance News – FintechNewsCH

compose new post
next post/next comment
previous post/previous comment
show/hide comments
go to top
go to login
show/hide help
shift + esc