#PayPal made a strong move into the group #payments space with the announcement it will purchase #Hyperwallet for $ 400 million. The deal is expected to close in the fourth quarter. Hyperwallet allows for businesses such as Etsy, eBay or Uber to easily make disbursements to multiple merchants or drivers, even across international borders. The company […]
Bank Innovation
#Banks today are facing stiff competition from innovative fintechs focusing on niches in the retail banking value chain. The advent of Open Banking will also facilitate the creation of new products and services that were previously impossible to imagine.
This creation of new products and services is blurring the gaps between banks’ traditional lines of business, such as payments and #credit. Fintechs and banks see the importance of linking credit and payments, self-evident for many years with credit cards, but which is an emerging theme in payments #innovation currently.
The millennials of today are uneasy carrying credit card balances, particularly as an aftermath of the struggle with debt during the financial crisis. They lend with more certain repayment terms, which helps them fund their big-ticket as well as smaller purchases while also consolidating their debts. #Point-of-#sale lending has emerged as a new category of lending to help such consumers finance new spending and to help merchants reduce basket abandonment. By partnering with merchants and embracing digital technologies, some disruptive fintechs are competing directly with credit cards and store cards to provide customers with quick and easy short-term credit at checkout.
One such disruptive #fintech in this space is Klarna, which provides a “buy now pay later” option at the checkout. When visiting a website powered by Klarna, shoppers need to simply input their email ID and shipping address, without the need to set up an account or type in credit card information. The maximum purchase limit is different on each account and is determined by a credit assessment by Klarna. For retailers, Klarna assumes all the financial risk of encouraging shoppers to close the deal without #payment. When the online retailer ships the product, Klarna pays the merchant directly, then sends a message to the consumer allowing 14 or 30 days to pay or return the item. Shoppers can also choose to pay on monthly installments with an interest component added. Behind the scenes, Klarna does checks that quickly determine if a shopper is a legitimate person and has good credit based on his or her email and shipping address.
Other companies in this space, like PayPal credit (formerly known as Bill me Later), have been steadily growing since 2008; PayPal credit offers a digital reusable line of credit to shop anywhere PayPal is accepted. Customers get up to six months to pay on purchases of $ 99 or more. Another player in this space is Affirm, which is also partnering with merchants to offer payment options, including financing as an alternative to credit cards.
Payments systems, like those offered by these players, are growing, are profitable and are encroaching more and more on traditional banking systems. The primary benefit of such a service is that removal of the payment step greatly reduces friction and shopping cart abandonment in the checkout process. The model proves to be a win-win for the customer and the retailer alike. The granting of a banking license to Klarna has enabled the fintech to move into ‘big bank’ territory and start offering its customers a larger range of financial services.
Banks such as Wells Fargo and Citigroup have been big players in point-of-sale loans historically—but these types of loans are now becoming increasingly popular. This is due to the advent of #technology that enables merchants to offer the option of a loan at the moment of purchase, where they may have previously only accepted cash or credit cards. Of late, consumer loan growth has become a top priority for banks to diversify their loan books, which historically have been over-burdened with commercial loan portfolios.
Some banks have taken the route of partnering with fintechs to have their share in the POS lending scene—e.g. banks like SunTrust, Regions Financial Corp, Fifth Third Bancorp, etc. have been offering their loans through GreenSky, a fintech which enables merchants selling furniture, home improvement and medical firms to provide POS credit to their customers. GreenSky provides loans—from $ 5,000 to $ 55,000—which are funded in minutes by any of the banks in their network.
POS lending provides the much-needed portfolio diversification which banks need in their books. Burgeoning fintechs in this space are claiming their share of these loans from customers—and banks need to ensure they have their own plans in place to either partner with them, or speed up their digital innovation processes to get their fair share of the POS lending market. With the advent of technology and regulations aimed at removing friction in the customer journey, the linkage between payments and credit are strengthening like never before, and banks need to have their strategies ready to retain their dominant foothold in this space.
The post Payment innovation extends the marketplace for credit at the point of sale appeared first on Accenture Banking Blog.
EXCLUSIVE—#Marketplace lending survived 2017 with many of its advantages over traditional balance sheet #lenders intact, including its embrace and use of new digital technologies for lending and underwriting. With marketplace lenders enabling a borrower to apply for a loan via a mobile device from the comfort of their own home (rather than standing in line […]
Bank Innovation
It’s been less than a year since Goldman Sachs unveiled its #marketplace #lending arm, Marcus. How has the platform been doing so far? Marcus has lent more than $ 1 billion since the launch, and plans to “cross” the $ 2 billion threshold by the end of the year, Chief Executive Lloyd Blankfein said in an interview […]
Bank Innovation
The #marketplace #lending industry is far #from dead. Rather, it’s going through a reboot, which will include improved software, increased focus on regulation, and improved transparency. This was the upshot from a venture capital panel at a recent Bank Innovation event in San Jose. But what got the online lenders in trouble in the first […]
Bank Innovation
Image source Eons ago I managed a sales team that sold core banking systems to global #banks. One sales guy was consistently the best performer. I decided to find out his secret to teach it to the rest of the sales team. He had found a report that senior managersRead More
Bank Innovation
Image source This is a two part investigation. Part two will be on Friday. Big: a big and fast growing middle class and a banking sector that has been asleep at the switch on the consumer side; the idea of #China as a consumer market is relatively new and ChineseRead More
Bank Innovation
#KPMG has launched a new #platform that allows users to #hire KPMG #specialists to cover their short-term needs for up to 20 days, effectively, and online. The new service aims at addressing the increasingly fast-paced, dynamic and #digital working world.
As digitalization forces Swiss companies to innovate and take a critical look at their business models, KPMG is looking to lead the trend as the auditing and consulting firm has announced the launch of a new digital platform for the temporary staffing of its professionals.
Qualified as “the latest innovation in digital platforms,” KPMG’s #Marketplace lets businesses hire KPMG specialists rapidly through an entirely digital process. The temporary staffing agreement is concluded #within 48 #hours and marks the beginning of deployment.
Explaining the new platform, Anne van Heerden, head of advisory and member of the executive committee at KPMG Switzerland, said:
&8220;Marketplace is something completely new in the advisory business. Regardless of the reason, whether seasonal peaks, complex analyses requiring extra work or emergencies that pop up at short notice, at KPMG’s online platform, enterprises can find just the right specialists in a flash to efficiently cover their temporary requirements for any timeframe of up to 20 days.&8221;
KPMG&8217;s specialists provide a wide range of capabilities through Marketplace including financial modelling, analytics, business and process analysis and project administration and reporting.
According to Stefan Pfister, CEO of KPMG Switzerland, the platform intends to help companies with their digital transformation processes. He said that the new service will open up a wide range of opportunities and possibilities for the firm to incorporate into its auditing and advisory services.
&8220;Marketplace is just the latest example of our broad-based digital #attack,&8221; Pfister said. &8220;For years now, we have been offering our clients a unique range of support services in areas such as cognitive data analytics where we work together with Microsoft, IBM Watson and McLaren, along with many others.&8221;
KPMG Marketplace has launched in a number of markets including Switzerland, Australia and Vietnam (also referred to as KPMG OnDemand).
As the consulting world undergoes a shift, KPMG has been deploying a number of initiatives to disrupt itself and remain competitive in the face of growing demand for greater digitalization.
With a team based in Singapore, KPMG Digital Village acts as an online platform connecting firms with startups. The idea is to boost collaboration between corporates and the startup community to help the firm&8217;s clients in their digitalization journey.
KPMG Digital Village focuses on three particular areas: #fintech, healthtech and logtech.
During the past few years, consulting firms s have made some strategic acquisitions of design firms, moves that highlighted the industry&8217;s shift towards digitalization.
Featured image via KPMG
The post Digital Attack: ‘Marketplace’ Platform Lets You Hire KPMG Specialists within 48 hours appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
As you might have seen, the second your eyes opened this morning (I’m assuming like the rest of the population that your phone is already in your hands when this happens, if for no other reason than shutting off your alarm), #Facebook has just today launched its own peer-to-peer, ecommerceRead More
Bank Innovation
New York-based money transfer service #Payoneer has signed with e-commerce player #Rakuten.com, formerly known as Buy.com. Payoneer doesn’t enable purchases on the platform, but rather enables Rakuten to compensate its suppliers, who may be located anywhere in the globe, particularity East Asia. “We&8217;re a bridge between marketplaces and sellers,” saidRead More
Bank Innovation
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