bobsguide spoke to Lu Zurawski, Solutions Practice Lead, Consumer Payments EMEA at ACI Worldwide about what fintech actually means, what the future holds for the payments landscape and why some countries have picked up on new technology faster than those in the developed world prior to Sibos.
Sourced through Scoop.it from: www.bobsguide.com
The payments landscape has seen some major changes in the last decade thanks to innovations from new entrants to the market. Consumers have benefited from better rates, lower fees, improved customer experience – all driven by new technologies. I can’t help but wonder if incumbents would have invested in digital as heavily without the disruptive non-bank players coming onto the scene; the way in which people used financial products remained the same for years, and even though technology was evolving at a rapid pace, banking was slower to catch on, as there appeared to be no reason to embrace it.
Sourced through Scoop.it from: www.finextra.com
The outlook for digital start-ups looks less than promising, with global professional services firm Accenture warning that the vast majority of new digital platform startups are destined to fail in coming years.
And, while Australia has a “relatively strong” ranking at sixth in the world in Accenture’s Platform Readiness Index”, Accenture warns that the nation looks set to lag behind global counterparts in the digital platform market, due to the lack of “sufficient business and socio-economic enabling conditions”.
While warning about start-up failures, Accenture says that after “digital-born” companies paved the way to growth with platform business models, now it is small enterprises and traditional businesses entering the digital platform market in a second worldwide wave. In the first wave — in the five years between 2010 asnd 2015 — US$20 billion was invested in digital platforms
Sourced through Scoop.it from: www.itwire.com
“The Brexit unrest aside, Europe is taking initiatives to make a sounder, more user-friendly economic landscape. By using technology solutions and digital innovation, the European Union (EU) is encouraging greater transparency, usability and higher standards of security for all manner of web-based banking and financial transactions.
Irrespective of any governmental re-organisation, and the trickled-down impact to markets, some of the EU’s advancements will lead to improvements in how organisations and society work, and it’s encouraging.
The Revised Directive on Payment Services (PSD2) is a perfect example of how the EU is encouraging a pairing of technology innovation with market opportunity, with the goal of opening up more financial institutions to be able to interoperate, share data and make users’ lives easier. It is a sensible directive that will change how the world conducts business, and it is creating opportunities for technology companies that provide the connective tissues among applications, data repositories, and other sources of information.”
Sourced through Scoop.it from: www.bankingtech.com
On 12 August 2016, the European Banking Authority (EBA) published a consultation paper on draft regulatory technical standards on strong customer authentication (SCA) and common and secure communication under the revised Payment Services Directive (PSD2).
The publication of these draft technical standards follows on from a discussion paper issued late last year, which received a number of responses, and sets out a harmonised framework designed to ensure security for both consumers and payment service providers (PSPs).”
Sourced through Scoop.it from: www.eversheds.com
The EUs Directive on Payment Services 2 (PSD2) will accelerate the fragmentation of Europes retail banking industry following the global financial crisis. The opportunities brought about by PSD2 will energize banks with strong brand awareness and advanced digital offerings into pushing the boundaries of open banking. Increased competition from card issuers and non-bank third-party providers will prompt steady mid-cap players to fundamentally evaluate their strategies. Banks that are competing on price may see a future in collaborating with third parties, but in doing so will relinquish control over their customer relationships. Whichever path is chosen, the opportunity to offer, create, or co-create new products and services much more quickly is a positive change for the industry.
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Sourced through Scoop.it from: www.digitaljournal.com
Protectoria announced today a technological break-through for payment transaction security. The technology enables PSD2 (Payment Services Directive II) security compliance for payments for a single smartphone without any other pre-requisites other than an Internet connection and a security enhanced payment app.
Sourced through Scoop.it from: www.benzinga.com
“The European alternative finance industry — which includes marketplace lending, crowdfunding, balance sheet lending, and invoice trading, among other models — is far smaller by volume than in the US and UK, according to a report from the University of Cambridge and KPMG.
The European alt finance industry’s market volume was €1 billion ($1.1 billion) in 2015, up 72% from €594 million ($668 million) the year before. In comparison, the UK industry’s market volume was €4 billion ($4.5 billion) in 2015, up 84% YoY, while the market volume in the US was €34 billion ($38 billion), up 213% from 2014.”
Sourced through Scoop.it from: uk.businessinsider.com
The disruptive forces of technology and legislation are forcing banks to become open and collaborative, things which they historically found challenging.
A friend who owns a small business recently went through what I call a “connected and choreographed” experience to get a loan. iWoka, a digital lending company, simply asked him to log on to his PayPal and Xero (accounting software) accounts and connect his bank feeds. This enabled them to quickly establish his credit worthiness and offer a loan. After accepting the loan via email, the money was transferred to his account and Xero automatically reflected the loan in his company’s balance sheet. This all happened in under an hour. Contrast this with a traditional bank’s lengthy and often cumbersome process, which requires a detailed business case upfront that can take weeks to put together.
How was iWoka able to do it? Through so-called application programming interfaces, better known as APIs. Put simply, APIs allow developers to build systems that talk to each other. This results in a connected experience that enables customers to use a range of financial services in new and exciting ways. By building open platforms and embracing collaboration, fintech companies are “bundling up” to compete with banks on more fronts.
Sourced through Scoop.it from: www.bankingtech.com
“The EU’s efforts to regulate financial markets has opened new opportunities for global fintechoperators looking for universal standards to tap into the lucrative 28-country marketplace. While over-regulation can stifle growth, the fintechindustry, in pursuit of consumer trust, has a lot to gain from a clearly defined regulatory framework.“Fintech startups will need a very clear regulatory and compliance strategy as well as their product and marketing strategies. The new regulatory environment is beneficial for thosefintech companies that are building data-driven businesses with transparency and data-integrity as the backbone,” said Marta Sjögren from Northzone, a Stockholm-based investment fund.
Regulation often is an entry barrier because companies must be licensed by regulatory bodies to do business in each jurisdiction. For startups that want to expand, compliance is mandatory and the financial system has low tolerance for risk.”
Sourced through Scoop.it from: techcrunch.com