The land of traditional insurance is getting an upgrade. 2017 might be the year the insurance industry (which tends to conjure up images of cramped cubicles, multiplying paperwork, and incomprehensible legalese) gets the #fintech touch; in fact, we’ve already seen the beginnings of the change with certain #startups named after certain citrus beverages. Want to […]
Bank Innovation
#Silicon #Valley #Bank and #First #Data look for #fintech companies with Series A funding for their virtual #accelerator program.
Tom Groenfeldt – Financial Technology
There’s #lots of talking #ahead to #develop global #standards for financial #technology firms and #banks. It’s pretty vague in these announcements but more is promised.
Tom Groenfeldt – Financial Technology
P2P, e-commerce, InsurTech, and neobanks–#2017 is certainly shaping up to be a great year to shake up your smartphone contents with the latest #fintech novelties. Of course, keeping a watch on the #best newcomer #apps can be a little challenging. That’s why Bank Innovation has put together its annual list of the best newly-arrived fintech […]
Bank Innovation
#China and #Hong #Kong saw greater #fintech #investment than the U.S. –$ 11.2 billion to $ 9.2 billion while leaving Europe in the dust with $ 2.4 billion.
Tom Groenfeldt – Financial Technology
Pairing up with fintechs can provide quite a few benefits to #banks, as long as they pick the right partners. Banks have been spending more and more on deals just to make sure they don’t get left by the wayside–JPMorgan Chase, for instance, spent $ 600 million on #fintech alone in 2016, according to the bank’s […]
Bank Innovation
Fintechs are becoming more entrenched into the financial ecosystem, with the majority of #banks now firmly on the side of collaboration, rather than conflict. More than 80% of financial incumbents anticipate developing more #partnerships with fintechs in the next five years, according to PwC’s 2017 Global #Fintech Report. However, working with fintechs is nothing like […]
Bank Innovation
$ 600 #million of JP Morgan #Chase’s $ 9.5 billion #technology spend in #2016 went to #fintech solutions, and given the company’s 2016 results, it seems like money well #spent. According to the company’s Annual Report 2016, released today, the bank’s spend on fintech included improving its mobile and digital services. Chase ended the year with 26 […]
Bank Innovation
Following on from my previous blog introducing the new year in the #Fintech Innovation programme, I wanted to turn the focus onto the emergence of #RegTech—technologies that address the challenge and cost of regulatory compliance. Over the past couple of years, we’ve seen RegTech arise as an entity in its own right. It’s a welcome development: financial regulation’s been increasing in complexity since 2008…and so has the compliance challenge. Looking ahead, with new technologies like #blockchain and smart contracts coming into play, the pace of regulatory change will accelerate even more.
RegTech has two aims: increasing the effectiveness and the efficiency of compliance. Both are critical. The cost of non-compliance, e.g. fines, legal bills and compensation is estimated by Standard & Poor at £19.5 billion over the past year for the UK alone. Similarly, the cost of compliance is a heavy burden on the industry, somewhere between £10 billion and £20 billion in the UK. There are hidden costs too. Increased bureaucracy damages customer retention and onboarding, while complex regulation can get in the way of innovation.
Continue reading the post RegTech: what is it and what are the benefits? on Accenture Banking Blog.
Read the full report
In the new world of #digital #payments, many #technology developments are driven by #customer #experiences. #Banks are investing heavily in technological innovations and #Fintech relationships to provide better payments experiences to their customers. Even so, there is a stark contrast between the payments experiences of retail customers and #corporate customers. While retail consumers can enjoy seamless, immediate, always-available payment services with advances such as mobile and contactless payments, corporate customers struggle with rigid paper-based processes, fragmented products and relationships, poor visibility into payment flows and more.
However, I see a shift starting to happen in the corporate payments landscape as corporates start demanding the ability to transact in real-time, in an omni-channel environment, 24/7. Banks such as HDFC, HSBC, and others are already launching their corporate mobile solutions in areas including cash management, trade services, reconciliation, authentication and operational support.
Market dynamics are driving corporates to restructure their operating models, and are driving banks to adapt their corporate payments offerings to meet these new expectations (as shown in Figure 1):
Figure 1
The (re)emergence of virtual accounts is a key trend to watch, with banks such as BNP Paribas, RBS and Barclays leading the way in offering virtual accounts to their corporate customers. Virtual accounts provide corporates with better control over their cash management accounts, reduce administrative costs and optimise the number of real bank accounts, thus eliminating the need for cash management products such as notional pools (at least in the same currency). Banks can also consider extending virtual account management features in a multi-bank environment for the corporates who bank with multiple banks.
Corporate portals are another product that banks such as CitiDirect, J.P. Morgan and Barclays have in their corporate payments service portfolio. A corporate portal presents corporate customers with a single view of all their banking services and activities, and for banks it can support greater cross-sell of products, making it easier to roll out new and enhanced digital services.
As banks strive to deliver against corporates’ expectations, they need to invest in new payments technologies, move closer to corporate customers, and integrate themselves into their value chains. If banks themselves don’t move quickly to seize this opportunity, then somebody else will do it first—thus relegating banks to back-office utilities running accounts for others’ front-office payments offerings.
Accenture recognizes the challenges banks will have in balancing innovation with handling ‘run-the-bank’ issues such as regulation and the inflexibility of legacy systems. Those banks that can execute on both fronts most effectively will win out in the race to forge durable, profitable relationships with their corporate customers.
Read more in the full report, Transforming the corporate payments landscape
The post Corporate payments: Catching up with the customer experiences of digital transactions appeared first on Accenture Banking Blog.
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