Can Banks Make Innovation Projects Count?

Despite all their efforts to pursue tech innovation internally and through partnerships, many banks are still struggling to turn those endeavors into practical solutions.

Over the last few years, banks have stepped it up. They are embarking on partnerships with fintech firms, they are incubating early-stage startups and they are trying to foster innovation from within. This multipronged approach might be creating problems, observers say. Essentially, banks are still trying to figure out their best method for innovation, said William Sullivan, global head of market intelligence for Capgemini Financial Services.

Sourced through Scoop.it from: www.americanbanker.com

EBA: Consultation On Guidelines On Authorisation And Registration Under PSD2 (EBA-CP-2016-18)

The European Banking Authority (EBA) launched today a consultation on its draft Guidelines specifying the information to be provided by applicants intending to obtain authorisation as payment and electronic money institutions as well as to register as account information service providers under the revised Payment Service Directive (PSD2).These Guidelines are in support of the objective of PSD2 of strengthening an integrated payments market across the European Union, ensuring a consistent application of the legislative framework, and promoting equal conditions for competition. The consultation runs until 3 February 2017.

Sourced through Scoop.it from: www.mondovisione.com

Forrester Predicts What Financial Services Executives Can Expect In 2017

As the seasonal hit song declares, it’s the most wonderful time of the year: The time when Forrester outlines its predictions for how the world will change in 2017. In the financial services space, we believe that leading firms will focus on improving customer journeys, while laggards will get distracted by bright and shiny technologies. A gap is emerging between the financial firms that are embracing digital business transformation and those that continue doing things the same old way. Forrester predicts that this gap will only grow wider, as leading firms will experiment with new ways to win, serve and retain customers.

Sourced through Scoop.it from: www.forbes.com

Cross-border payments: Could RTGS systems unlock the next big frontier?

It is no secret that the majority of European banks and financial institutions are currently faced with making big and strategic decisions: the pan-European instant payment initiative is due to go live in 2017, new regulations such as PSD2 will come into effect soon and the digitalisation of the sector is well under way, with customers demanding new services and payments methods.

IT departments and bank executives need to make difficult choices: do they try to adapt their current IT infrastructure to accommodate instant and mobile payments solutions as well as new European regulations, or, do they completely replace their current platforms with new ones, designed to follow strict PSD2 requirements and to accommodate new payments solutions?

Sourced through Scoop.it from: www.fx-mm.com

The banking revolution: A sneak preview

The recent APIDays London 2016 conference brought together the great and the good from the banking, finance and payment industries as well as programmers and technology specialists. Everyone had one common objective – to be part of a banking revolution. As Chairman of a FinTech company, I often find myself talking to banks, depositors and investors about our own vision for the future with a childish excitement about what it holds. Here I was, in a room with 350 others who needed no convincing, in fact, had fascinating views and insights of their own. So here are the game changers….

Payment Service Directive v2 (PSD2)
Coming into effect in January 2018, PSD2 will allow greater payment and account information to flow into and out of our financial service providers (i.e. the bank that we all use for day to day banking).
Open Banking Working Group (OBWG)
Formed in 2015, the OBWG released a report in 2016 laying out the template for how this exchange of information should be structured and reviewed important aspects such as security and data protection.
Application Programming Interface (API)
APIs are a set of functions and procedures that allow the creation of applications which access the data of an operating system, application, or other service. The apps on our phones are everyday examples of APIs at work.

Sourced through Scoop.it from: www.cambridgenetwork.co.uk

Smart Insights: Everything You Always Wanted to Know About PSD2 – Press Release Rocket

Intelling is publishing a new Smart Insights White Paper “Understanding the PSD2 regulation,” in which it discusses the main changes introduced by the new Payment Services Directive (PSD2) regulation, including opportunities and benefits for key stakeholders. With this new regulation, the European Commission (EC) aims to develop a unified payment services sector that better fosters competition, innovation and security of online payments. Innovative stakeholders will now have an opportunity to become payment institutions and to directly access users’ bank accounts, creating new business opportunities. Major benefits around cost, convenience and speed for consumers are expected to spread across the region. Though, not all stakeholders share the same enthusiasm around PSD2. Critics believe PSD2 will increase complexity of doing business in the regulated payments space.

Sourced through Scoop.it from: www.pressreleaserocket.net

Revolution in European payment transaction market highlighted in Deutsche Bank report as new regulation looms ahead

The clock is now ticking on implementation of an EU Directive of profound importance to Europe’s financial institutions, their corporate customers and consumers. European banks and payment providers will need to adapt their systems and processes to comply with the requirements of the new EU Directive on Payment Services Directive 2 (PSD2). A new white paper published by Deutsche Bank, in collaboration with PPI AG comprehensively explains the most important provisions of PSD2, as well as covering the directive’s impact on the operations of payment service providers and corporates.

Sourced through Scoop.it from: www.assetfinanceinternational.com

Getting data privacy and security right is ‘paramount’ to success of open banking, says regulator

Alasdair Smith, an inquiry chair at the Competition and Markets Authority (CMA), said without “the right safeguards” banking customers will not give their consent for their data to be “shared with anybody”. At the conclusion of its retail banking market review, the CMA said UK banks would be required to implement an open banking standard by early 2018, to allow businesses and consumers to share their own current account data with other banks and third parties and manage multiple providers through a single app. Open banking will be built on linking different systems together via application program interfaces (APIs). In a recent speech, Smith said the use of open APIs in banking would “give customers control over what data is shared and with whom”.

The CMA has recently published details of the initial work (2-page / 214KB PDF) being undertaken towards the development of the open banking standard. It includes work to set up an ‘implementation entity’, containing representatives from industry, to “act as the forum for the discussion and agreement of the application program interface (API), data and security standards”.

Sourced through Scoop.it from: www.out-law.com

Race to Connect FinTech Dots

On their own, start-up fintechs find it a challenge to compete with traditional banks; but by teaming up with technology giants they could beat the banks at their own game.

While top banks like Citi, Goldman Sachs and Barclays are leading the field when it comes to investing in and incubating fintechs, they are being joined by tech giants like Google, Apple, Amazon.

Tech giants, experienced in dealing with start-ups, can leverage new innovative ideas and apps from fintechs to become competitors to banks. Plus, fintechs may find working with tech giants more appealing as they are technology focused, innovative, open, agile, and can provide the scale and customer base required to shape & grow a solution.

Sourced through Scoop.it from: www.finextra.com

Brexit means Brexit, but London could keep its fintech crown

For years, London has been the fintech capital of the world. Is that likely to change now that Britain is gearing up to leave the EU before April 2019?

 

While U.S. regulators have struggled to create a regulatory framework that supports innovation in banking, the U.K. and fellow European Union nations have charged full steam ahead toward open banking.

 

A critical mass of digital platform opportunities could create a new center of gravity for startups and alter the flow of fintech talent and funds.

 

The centerpiece of this effort is the EU’s Revised Payments Services Directive (PSD2). Aimed at creating a more integrated European payments market, the directive requires that all banks operating in EU member states provide access to customer account information, transaction information and payment initiation to third parties via application programming interfaces (APIs).

Sourced through Scoop.it from: www.finextra.com