#Credit card penetration is one of those problems that isn’t really a ‘problem&8217; in the West. In the U.S. alone, 232 million adults are said to own at least one credit card, with 18 percent of consumers in the country owning two or three cards. Read More
Credit, private or public, is of greatest consequence to every country. Of this, it might be called the invigorating principle. -Alexander Hamilton So which is it? Is #lending a good business, where moats and profit pools are durable and one can build billions in equity value … or is it anRead More
Bank Innovation
#Swiss #bankers are the most #convinced that #fintech will #impact the entire #financial services #industry, naming #robo-advisory and #blockchain #technology as the most impactful innovations, according to a new #survey by CFA Institute.
Released earlier this month, CFA Institute’s ‘Fintech Survey Report 2016&8217; measures the opinions of the organization&8217;s investment professional members to better understand their sentiment towards the emerging fintech scene.
According to Christian Dreyer, CFA and CEO of CFA Society Switzerland, the survey results highlight “the fascination and respect that financial experts have for financial technologies.”
&8220;Swiss counterparts are particularly convinced by all things related [to financial technologies],&8221; Dreyer said in a media release.
Findings suggest that among the current innovations in the financial services industry, robo-advisors are expected to have the biggest impact in both short and long-term.
Asset management (55%), banking (16%), and securities (12%) are the three sectors that will be the most affected by automated financial advice tools.
70% of participants consider that mass affluent investors will be positively affected by robo-advisors in the form of reduced costs, improved access to advice, and improved product choices. In Switzerland, this figure rises to 80% of respondents.
That said, respondents also named the biggest risks affiliated with the increase in automated financial advices as technical flaws in the algorithms (46%), mis-selling of financial advice (30%) and privacy and data protection concerns (12%).
While robo-advisors are considered to be the technology that will have the greatest impact on the industry both 1 year and 5 years from now, blockchain technology is considered as the second technology with the greatest potential future opportunity (and risk) in the medium- to long-term.
Clearing and settlement, alternative currencies, and commercial banking are the top three areas that are thought to be under greatest impact of blockchain technology.
Crowdfunding and lending marketplaces on the other hand should have short-term impacts on the financial services industry.
38% of respondents believe that existing crowdfunding and/or peer-to-peer lending marketplaces do not have the right balance between ease of access and investor protection. 53% of them are not sure if such balance is possible.
As a leader in both financial services and innovation, Switzerland has the potential to become a frontrunner in fintech. That said, not all are convinced that the country is putting enough effort to fulfill its potential.
In a report released in February, EY argued that Switzerland is lacking governmental support when compared with the likes of London or Singapore.
In March, the Swiss Financial Market Supervisory Authority (FINMA) issued new rulings aimed at reducing obstacles for fintech startups and allowing the industry to flourish.
The circular allows financial intermediaries to onboard clients by means of online and video transmission and is targeted at digital businesses in particular.
Read CFA Institute&8217;s &8216;Fintech Survey Report 2016&8217;: https://www.cfainstitute.org/Survey/fintech_survey.PDF
Featured image: Graphs and charts with stacks of coins, by S.Dashkevych, via Shutterstock.com.
The post CFA Swiss Fintech Survey: Swiss Bankers Convinced That Fintech Will Dramatically Impact Financial Industry appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
Professional services firm #Deloitte has unveiled a new #blockchain proof-of-concept focused on artwork provenance.
fintech techcrunch
The last day of #Consensus 2016 featured a workshop discussion on #standards for #blockchain development.
fintech techcrunch
#Fintech: #Shaking up the #financial #industry
The following is a script from "Fintech" which aired on May 1, 2016. Lesley Stahl is the correspondent. Shachar Bar-On, producer. One sector of our economy after the next is being disrupted by new apps and websites, like bookstores, travel agents …
Read more on CBS News
Malaysia #banks told to embrace challenges posed by fintech firms
KUALA LUMPUR (May 3): Malaysia's banking industry has been urged to embrace challenges put forward by financial #technology (fintech) companies to stay relevant in the evolving world economy. "With fintech, people don&39;t go to the banks anymore and …
Read more on The Edge Markets MY
#2015 has been the year which saw some path breaking innovations, rapid adoption and steady growth of the Mobile Payments Ecosystem in India. With wider adoption of smartphones and Internet penetration, people in the country have finally started realizing the benefits of #technology in online payments space. We take a look at 5 #trends that have made a huge impact on #payment technology #industry in the recent time.
1. Mobile wallets & Checkout
There was an increased acceptability of the most recent online payment innovation ‘mobile wallet’. Words such as ‘wallet’, ‘cashbacks’, ‘wallet offers’ etc. have become a part of our daily life. All thanks to the millions of dollars which have been burnt at a breakneck speed in advertising and praising the merits of new age online payment system. Especially the advertisements around the mobile wallets are way too luring for anybody to fall for it due to the benefits that are being offered.
Consumers appreciate mobile wallets that enable faster checkouts. In recent times, it has been observed and established that businesses offering a seamless payment experience have a tendency of picking up faster in the market. Buyers tend to lose interest in the purchase if the payment process is too complicated. Accepting payments from customers isn’t as easy as clicking a switch and watching the money flow in, however it is not necessary that it be complicated either.
In this regard, PayUmoney made some noise with its checkout feature.
2. Faster mobile payments with focus on reducing transaction time
With massive shift to mobile that has happened in such a short time frame, opportunities in m-commerce as well as in other areas have multiplied. This is a time when online payment companies would be taking e-commerce companies to the next level.
Few online payment companies have already started working in this direction by thinking about what problems they can solve for m-commerce by providing best online payment experience on mobile screens.
The launch of ‘one tap payment’ by PayUbiz is one such technological breakthrough which sent ripples across the booming online payments industry. The patent pending and first of its kind tech innovation in the payments world is another step which will ensure a robust online payment system. The PCI-DSS complaint and patent pending ‘one tap payment’ is a combination of 4 different tech innovations that together provide a seamless online payments experience to the users.
Store Card Vault: This feature is the first of seamless payment journey, ensures that the consumers don’t have to go through the pain of putting in the 16 digit card number repeatedly.
No CVV: The heart of creating a seamless one tap payment solution was doing away with the process of repeatedly entering the CVV. The innovative patent pending and PCI-DSS certified technology developed by payubiz provided a solution to it.
Auto OTP read and submit: Furthermore the second factor authentication of OTP, gets auto read and submitted leading to the completion of a seamless one tap payment experience.
Magic Retry: the magic continues even when there is a network issue and the magic retry feature picks up the transaction from the point where it stopped.
3. Focus on improving mobile transaction success rates (impacted due to poor network)
In India, network congestion, signal error, slower internet speeds on 2G, 3G, and internet fluctuations are prime reasons for a transaction failures on mobile. A transaction can drop anywhere while it is hopping across acquiring gateways, processors, issuers or Master/Visa network. As a result of this, merchants encounter increased cart abandonment rates which impacts their revenue stream negatively.
For this Magic Retry feature was introduced by PayUbiz which solves this issue very effectively. Magic Retry gives customer an option to retry by a click of a Retry icon, without the customer to go through the hassles of re-doing everything again. Magic Retry captures the current status of a customer’s transaction and creates various checkpoints during the transaction. It helps him/her recover the transaction if anything goes wrong during a payment process. In other words, upon Retry, it resumes the transaction from the last successful checkpoint by re-using the existing captured parameters.
Statistics suggests that the mobile based payment transactions suffers approximately 20% drop rates due to network issues. As low as 50% customers retry transaction due to failures at first attempt. With this feature, this the success rates can go up to 90-100%. .
4. Emerging Biometric payments
Security is the topmost concern of the financial services industry today. Passwords have been the most common and the oldest way to keep accounts and personal data secure. But for how long? It’s difficult to keep a track of all the passwords and payments organizations have already started bringing innovations in this space.
Very rapidly, biometric authentication is replacing the term “password,” especially in #FinTech. This is true not just for the US but globally as well.
In the FinTech industry, Apple has done a brilliant job of taking people away from passwords by introducing TouchID. Apple’s TouchID has been a huge success as #banks and financial institutions are incorporating the feature in their banking mobile apps. Like Apple Pay, Samsung Pay also has biometric authentication techniques where a user will be able to authorize payments by holding their finger on the inbuilt biometric scanner.
5. Online to Offline
O2O is defined as anything digital such as a mobile app which brings people to shop in offline stores. Mobile payments are an enabler for O2O wherein customers can shop from offline stores and use a service such as mobile wallet to make the payment for the service or product.
Recently Paytm decided to enter into O2O with the acquisition of local services marketplace Near.in. It also invested in deliveries start-up Jugnoo and Little, an app that helps people find deals at stores in their neighbourhoods.
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