Are banks promoting phishing?

Phishing is a serious security issue for banks. Industry data suggests that losses from online banking fraud were up 64 percent to £133.5 million in 2015 from £81.4 million in 2014. A Google search for “bank phishing” turns up results from all the major high-street banks, with titles like “Recognising & Preventing Phishing” and “Phishing & email scams.” Barclays has even started producing videos on the subject. So if the industry is, rightly, concerned with educating people about the risks of phishing, why on earth are they happy for their customers to put their login details into any other website than their bank’s website?

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EBA Strong Customer Authentication – The End of Frictionless Card Payments?

It seems that European payments regulation may be forcing the cards market to take a step backwards. We appear to be moving away from the frictionless online payment environment that so many of us use day to day, towards a much higher friction world where every transaction over €10 is actively issuer authenticated. This blog explores some of the implications of the tough stance taken by the European Banking Authority on consumer authentication in the European cards market.

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Research: Convergence of interests in the new financial ecosystsem

Saxo Bank’s Søren Kyhl and Stig Tørnes examine how the electronic financial sector will look in the future in a very detailed research piece.

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PSD2: An open opportunity

James McMorrow, head of payment strategy, Lloyds Bank, believes it is time for financial institutions to choose their strategic path to PSD2 compliance – and to embrace the benefits of open banking. Designed to drive increased competition, innovation and transparency across the European payments market, the revised directive on Payments Services (PSD2) has potential to reshape the financial services industry as we know it. One of the most disruptive elements of the new directive, which banks must implement in January 2018, is the Access to Account rule (XS2A) whereby third-party providers (TPPs) who are regulated and authorised by customers will be able to receive account data from banks. This will enable them to provide the customer with an aggregated view of their balances and transaction information, for example.

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PSD2 a golden opportunity for banks – new Finextra paper

If banks embrace PSD2 as a driver for strategic investment in open banking, they could leverage this mandatory change for technology and business benefit, finds new research from Finextra and Axway.

Banks have elevated their thinking about the revised Payment Services Directive (PSD2) beyond pure compliance to take a more strategic outlook – and they are viewing this regulatory change as just one of the reasons for embracing open banking based on open APIs. These are among the key findings of a new research report, produced by Finextra in association with Axway, and launched this week during Sibos 2016 in Geneva.

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PSD2: EBA Consults On Strong Customer Authentication And Common And Secure Communication – Finance and Banking – European Union

PSD2 entered into force on 12 January 2016 and will replace the current Payment Services Directive (in force since 2007) as of 13 January 2018. Under PSD 2, EBA has a role to develop (in close cooperation with the European Central Bank) a range of draft regulatory technical standards (RTS) specifying, amongst other, the requirements of strong customer authentication and the exceptions thereto.

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PSD2 in EU: New Report Provides Detailed Analysis of Expected Impact on BFSI Sector: – Press Release – Digital Journal

The EU’s payment directive aims to make it easier for Europeans to make cashless euro payments across national borders and the accompanying financial frameworks without having to change platforms. This calls for a unification of the financial protocols, standards, and infrastructure used across a significant part of Europe, which is a massive task. One of the key takeaways in the report deals with this, recommending players in Europe’s BFSI sector to view the incorporation of PSD2 guidelines as a fundamental model change rather than a mere compliance requirement.

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Why SA should consider EU-style payment rules

EUROPE’s Payment Services Directive 2 (PSD2) is expected to come into force in January 2018. With some banking industry commentators referring to it as the biggest development in banking history, one has to wonder why SA has not already begun to follow suit.

PSD2 was drafted to further standardise, integrate and improve efficiencies between EU states as well as stimulate competition in payments across the eurozone. Effective regulations also improve protection of consumers as well as bringing the obvious benefits of more options, cost savings and increased service.

Although a large chunk of the attention has been focused on the open banking APIs and the standards surrounding this requirement, the new ways that consumers can pay for purchases should be giving local bankers pause for thought.

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Sibos 2016: Instant payments “the new normal” – IBS Intelligence

End users are driving the instant payments landscape, and most companies are doing their best just to play catch-up. That’s according to José Beltran, Director of Business Development at STET, who was speaking to a packed conference room at Sibos 2016. Competition, regulation, technology and market demand are the four main reasons that payments keeps pushing itself forward, says Beltran, with competition and user demand probably the two main factors. PSD2 could be a game changer in that regard, however, he adds, as it will give opportunities to some “very creative people” and open up payments possibilities.

Throwing out some figures for the audience, Beltran points at the 35% increase in card transactions between 2010 and 2014 as a sign of things to come, though makes sure to highlight the fact that there was also a 22% increase in the amount of cash in circulation in the same period. What ishaving a larger effect, he concludes, is consumer habits – people are used to getting instant service from the technology in their daily lives. This has led to them expecting better, faster experiences from their banks.


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The path to perfect harmony » Banking Technology

With widespread adoption of the ISO 20022 messaging standard announced for the many immediate payment initiatives under way internationally, you could be forgiven for thinking that the ‘standards wars’ have been won. The reality is that they are only just beginning.

In the past few years, ISO 20022 has certainly moved from being a technical issue to being a central component enabling new business services to be implemented, such as providing enriched data alongside basic transactional information. At the same time, there are other technical developments coming along, notably distributed ledger technology, that have the potential to change the way financial transactions are processed and also regulatory changes that affect where banks sit in the financial value chain. It is also worth bearing in mind that ISO 20022 is intended for use only in payments, securities, foreign exchange, trade services and cards operations. Many of the changes in working practices that institutions will have to make lie outside those domains.

In this latter category, the stand-out event is the implementation of the access to accounts (XS2A) requirements of the European Union’s second Payment Services Directive (PSD II). This will require banks to provide authorised third-party access to account information to enable competitive services and in some cases to initiate payments.

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