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Definitive Differentiators - Forging a future-proof payments model

Over the last few decades, banks have been forced to reconsider their business model for transaction services. During the era of low-interest rates, the focus shifted to transaction revenues, and while the pendulum is now pivoting back to utilising the balance sheet for revenue growth, the amount of new regulations impacting the industry is ever-increasing. New technology and market regulation have fostered innovation and new market entrants. This “perfect storm” is exposing a number of potential threats for banks, but also new opportunities to expand the share of customer wallet and time to market, and drive cost efficiency through standardization. This Finextra survey report, produced in collaboration with Tietoevry, explores the key factors driving changes to payment models for different financial institutions and how they can wield continued or differentiated success in the evolving landscape.

350 downloads

Impact Study

APP Fraud Liability: A Guide for Banks

Fraud is running rampant. The UK Government's 2023 'Fraud Strategy' report highlighted that fraud now accounts for over 40% of crime, yet receives less than 1% of police resources. More needs to be done to ensure that the consumer is protected.  This is why, as per the Financial Services and Markets Bill, all PSPs will now be required to reimburse fraud victims from October 2024. In light of these upcoming changes, banks need to reassess how they manage liability associated with APP fraud and develop new methodologies in order to investigate and mitigate fraud more effectively.  This Finextra impact study, produced in collaboration with Form3, gives banks a guide to tackling the new APP fraud liability landscape. It highlights:  Risk scoring payments  Implementing the right intelligence  Considering false positives  Ensuring explainability  And more. 

370 downloads

Impact Study

8 Steps to Efficient Transaction Fraud Monitoring

In the wake of the widespread shift to digital banking and ecommerce, fraud teams have seen a sharp increase in card transaction fraud. Since 2014, card transaction fraud has increased by an average of 8.9% per year and exceeded $32 billion in losses in 2021 alone. In an increasingly complex threat environment, card transaction fraud has devastating consequences for banks and merchants alike.  Technologies like cloud, artificial intelligence (AI) and machine learning (ML) pave the way for innovative fraud solutions. Yet, in order to effectively deploy these tools, banks need to address their underlying risk strategies, technical infrastructure and the quality of their available data.  This Finextra impact study, produced in association with Brighterion, a Mastercard company, explores the eight steps for banks to reach transaction fraud monitoring excellence. Download today to learn more. 

515 downloads

Sentiment Paper

Payments: The key to unlocking new ecosystems and why merchant services are on the up

To say things have changed in payments, and, as a result, the merchants services space is to understate a dramatic and fast-moving digital and cultural evolution that has driven such change.  Digital payments have enabled the establishment of hundreds of merchant businesses, particularly in developing markets, as well as the significant growth of global ecommerce.  This Finextra Research report, in association with Ingenico, explores: How banks and acquirers have adapted to the digital frontier; The importance of data-driven business services; Why the Point-of-Sale is the ultimate channel for digital success; What will be the key tenets of the payments ecosystem in the next five to ten years; And more. Download our sentiment paper today to discover more. 

655 downloads

White Paper

UK Open Banking API Performance 2022-2023

The UK continues to be at the forefront of the global Open Banking revolution thanks to the proactive attitude of regulators.  As the most advanced Open Banking market in the world, the UK provides an example of best practices in the implementation of API-based Open Banking that other jurisdictions can use as a model.  In this report, we study the performance of the Open Banking APIs exposed by the large CMA9 UK banks, traditional High Street banks, credit card providers and building societies, and new entrant banks (neobanks). Some of our key findings include:  There continue to be significant API performance differences between banks; There is a significant difference in total latency between the fastest and slowest banks; Cloud choice makes a huge difference in performance; And more. Download our analysis of Open Banking API services today to learn more. 

629 downloads

White Paper

How can the future state of information technology combat fraud and money laundering?

Modernisation programmes, digital service proliferation, client demand and advancing technology are all shaping the evolution and the future of financial services.  Real time is the order of the day, and while real time payments come more and more to the fore globally, payment providers need to get up to speed in being able to offer them to their clients and end users, but also to ensure they are deployed and implemented in a fully robust, resilient and secure environment.  With real time payments comes real time fraud and the opportunities for value on both sides of the fence is eye-wateringly vast. Firms cannot afford to have payments held up by authorisation checks, fraud and AML controls and yet at the same time the sheer amount of information that should be processed with any given payment in order to scan, approve and hence protect against fraudulent or nefarious activity is great.  Institutions are allocating more and more to defend against financial crime and this is at the same time good news and bad news for them. Being smart about such allocations means minimising the resource and disruption presented by legacy systems and instead working around them.  Download this Finextra whitepaper, produced in association with Hazelcast, to learn more. 

382 downloads

Future of Report

The Future of Digital Banking in North America 2024

2023 was characterised by increasing amounts of uncertainty and a lack of clarity across the financial world. The collapse of banks, including Silicon Valley Bank, Signature Bank and First Republican Bank, in March 2023, added strain to already unsettled financial markets. While market volatility has remained relatively stable, soaring inflation and climbing interest rates slowed economic growth and this is expected to continue into 2024.  While forecasts regarding the length and severity of a possible recession are speculative, experts are even more divided about stock market predictions for 2024. Optimism is strong in many investors who expect that 2024 is the year rates will stop rising and predict bullish turns that will see markets soar to new heights. Yet with many other factors affecting North American markets, the only certainty we can expect as we look towards 2024 is more uncertainty. This Finextra report on the outlook of North American banking trends, is produced in association with Money20/20 and includes key insights and commentary from industry experts at EY and Mastercard.

715 downloads

White Paper

Build, Buy or Bust – Hybrid leapfrogging Legacy

The age-old Build Vs. Buy conundrum has never been brought into sharper focus than it is now. In light of unprecedented unpredictability and economic volatility in recent times, in light of converging pressure brought about as a result of myriad payments systems, real time rails, cross-border implications in a global village, standards development and heightened public awareness and expectation, financial institutions are leaping forwards by falling back on partners to bring systems in line with modern business expectations.  Undoubtedly, the advent and availability of open source technology has intensified and strengthened both sides of the Build Vs. Buy argument. For one thing, it has enabled banks and financial organisations to tailor and sculpt new processes and systems around their exact needs, with the availability of non-proprietary technology. For another, it has brought about a plethora of third party ‘enablers’, as well as having inspired fintech services firms by way of creating plug-and-play or pay-as-you-go offerings.  And alongside all of this, the development of cloud technology and its permeation throughout the financial services industry has oiled the wheels for the journey, facilitating the bespoke and dynamic capability that open source cloud offers, and compounding the technological know-how and prowess of both banks and fintech providers the world over.  There are other influencing factors, such as the API economy, the concepts of open finance, open data; external global, market and economic drivers and events that shape the demand for improved and instant banking services in the first place, putting pressure on operations to the point that banks need to fast-track pretty much every modernisation or product development project they have going, inevitably having to outsource some of this burden.  Download this Finextra report, produced in association with Cloudera, to learn more.

261 downloads

Future of Report

The Future of the Global Financial Ecosystem 2024

A Sibos Special Edition. Our world has experienced several unexpected and unprecedented events over the last few years, which show no signs of slowing down. This year’s Sibos aims to connect those in the financial services community who have experienced fragmentation, in the hope that tackling this will help with some of the biggest issues facing banking. The role that financial institutions play in the global environment will continue to be placed under the microscope as situations continue to develop. In light of this, there has never been a better time for those in finance to come together and have frank and open conversations about their future. This applies to not only environmental and social goals for banks, but also the adoption of and adaptation to new technologies. No longer can these issues be placed on the side and given lip service, they need to become an integrated part of each financial institution’s core policies and practices. However, ever increasing this challenge are the continuously changing global circumstances. Due to these circumstances, communication and collaboration are essential drivers for 2024. This Finextra report, produced in association with Swift, includes commentary from BBVA, BNP Paribas, BNY Mellon, Deutsche Bank, ING, JP Morgan, Lloyds, McKinsey, NatWest, SEB, Standard Chartered, UniCredit, and Wells Fargo.

1023 downloads

Event Report

Entering New and Niche Markets with BaaS

A Financial Cloud Series Report Banking-as-a-Service (BaaS) has emerged as a prominent and steady trend in the banking sector, significantly disrupting the industry and introducing consumers to faster and more personalised services. Working hand-in-hand with embedded finance, BaaS allows third-party distributors to provide banking services, essentially integrating financial services in non-banking infrastructures. Research revealed that the BaaS market is expected to reach $11.34 billion globally by 2030, a huge jump from $2.41 billion in 2020. The rapid acceleration of the BaaS market is due to the speed of digital transformation currently occurring in the financial industry, with a sharply increasing number of banks and consumers seeking to integrate BaaS services into their offerings in order to provide quicker and more efficient experiences. The rapid growth of third-party non-bank platforms has grown exponentially in recent years to incorporate BaaS services into their offerings. The global market has embraced BaaS and new innovations are pushing the trend to become even more significant in the financial industry. BaaS opens up new opportunities for smaller businesses and for a diverse range of companies to facilitate banking operations on a wider scale. The banking sector has evolved and become more diverse and sophisticated through BaaS, which allows companies to focus on what is best for both businesses and banks. To understand how embedded finance and banking as a service can help to transform the backbone of business operations, experts came together for a Finextra webinar, hosted in association with Temenos, 'Entering new and niche markets with BaaS'. The panel explored how banks can best diversify their product offering with cloud.

298 downloads

Event Report

Keeping Pace with Customer Experience Demands during Cloud Migration

A Financial Cloud Series Report It has been widely established that the cloud is the next big step for financial institutions to become more agile, flexible, and scalable. The financial industry has become a storm as more and more companies flock to the cloud for data, real-time efficiency, and broader accessibility. According to Google, by 2027 over 50% of enterprises will have shifted to the cloud to boost their businesses and create more accessible and efficient platforms for their services. Cloud is seeing massive growth from all industries, and prominently from the fintech and banking sectors as industry leaders rush to get ahead of their competitors. However the move to the cloud is no easy task, as financial institutions require funds, time, energy, and talent to support the transition. As enterprises embark on their modernisation and digital transformation journeys, they are looking to new technologies to aid as they transition such as AI-driven technology. 72% of cloud experts see digital transformation as more than a simple task of “lifting and shifting” of company data to the cloud. The complexity of restructuring a company’s infrastructure with the help of a third-party in a new space is daunting, and requires a significant amount of prior planning and decision-making. To discuss how financial institutions are adapting to consumer demand and security concerns in the cloud transition, experts came together for a Finextra webinar, hosted in association with Temenos, ‘Keeping pace with customer experience demands during cloud migration’. The panel explored how banks are approaching digitisation on the cloud and using new technologies to scale up and expand.

155 downloads

Report

Customer Experience - Is Hyperpersonalisation the next frontier?

An Inflection Point as Banks Invest to Improve Customer Experience A Finextra research survey, which was conducted in late 2022/early 2023, aimed to quantify priorities and ambitions in financial services with regard to improving the digital experience of services for the customer, and to what extent services have or will become personalised, or even hyperpersonalised.  Financial institutions are prioritising investment in customer experience capabilities in what is seen as a key “inflection point” behind new IT-led growth initiatives, results from this primary research survey show. But feedback also reveals the challenges this objective brings, including legacy IT infrastructure and restrictions imposed by regulatory obligations around data storage and processing. The findings show a genuine and growing appetite by banks and other financial service providers to invest more in making customers’ online engagements easier and more fulfilling.  Download your copy of this Finextra Survey Report, produced in association with SoftServe, to learn more. 

443 downloads

Impact Study

How banks can expand the omnichannel for virtual signing experiences

The global pandemic presented a challenge to the way many products and services were offered by banks, and now that we are on the other side of Covid-19, the impact is clear. Covid has permanently altered the expectations and possibilities of how banks conduct their business. According to finder.com, in 2023 24% of people in Britain have a digital-only bank account, compared with only 9% in 2019. This trend looks set to continue with 5.3 million Britons intending to open a digital only bank account in 2023. To achieve success given these dynamics, financial institutions must balance the convenience of the virtual world with the personal touch of th real world. Customers expect their financial service provider to offer the same digital experience they are receiving in other areas of their life. For instance, the proliferation of existing tools that improve digital experiences such as Zoom, Microsoft Teams, or AI-based chatbots, are now proven and effective enablers of digital innovation. However, automation is no longer enough. Today, security and a human connection is a must-have, particularly because remote working is now normalised, but the requirement for collaboration persists. In a world where we are making more financial decisions on digital platforms, there must be a process in place where meetings can be tracked and signatures can be ensured virtually. This Finextra impact study, produced in association with OneSpan, explores how financial services providers can balance security, compliance, and remote interactivity with the need for a more human centric digital experience.

188 downloads

Sentiment Paper

Seeking Approval - Acquirers vs. Transaction Fraud

Transaction fraud monitoring lies at the heart of fraud prevention for acquiring banks, and while the effort in decreasing fraud rates has advanced significantly, so has the sophistication of fraudsters themselves. The emergence of AI within fraud solution models has come to the fore in recent years and along with it, newly realised appreciation of the value of transaction data, current and historic. Banks need to get to grips with processing and utilising these data to full advantage, to inform a robust and futureproof strategy which can both increase approvals and reduce fraud. For transaction monitoring solutions to drive value, serving both merchants and acquirers alike, intelligence on any given transaction needs to be issued in real time before the submission of authorisation. Approval rates, pricing, customer-centricity, and fraud rates are always going to be key differentiators in a very competitive market. Within these parameters, banks need to continually improve their service to remain competitive, while navigating the various tools and techniques that are rapidly emerging. Different business models prioritise different aspects of case management and scoring, using traditional rules-based methods and more data-led AI and ML approaches. This Finextra industry sentiment report was produced in association with Brighertion, a Mastercard company. It is based on several industry interviews, through which we aim to take a pulse on the industry’s general appetite for real-time, AI-driven, data-rich transaction fraud monitoring, and the various models, technologies, and priorities that shape acquirers’ anti-fraud strategies.

464 downloads

Report

The Future of Digital Banking in North America 2023

A Money20/20 USA Special Edition 2022 in North America saw a continuation of economic recovery from the Covid-19 pandemic, fuelled by the rapid rollout of vaccinations particularly across the US and Canada. Although the US was the fastest of the G7 economies to recover from the crisis, an enduring impact of the Russia-Ukraine conflict resulted in high inflation and the subsequent cost-of-living crisis is set to continue into 2023. These macrotrends are a catalyst for digital transformation within the financial services industry as banks attempt to grapple with new payments trends, the evolution of digital identity and innovative uses of data to enhance customer experience across retail, wholesale and commercial relationships. In 2022, digital banking for the consumer is far more advanced than the products and services that are available for merchants or large corporations. In 2023, open banking must be utilised to remedy this issue. For the retail customer, although digital methods of managing money are now part and parcel of day-to-day life, the pandemic encouraged, or in some cases, forced people who may have been uncomfortable with using technology to bank on their mobile phones or desktop computers. This unfamiliarity with technology has led to consumers being in environments in which they are vulnerable and at increased risk of fraud and other types of financial crime. In 2023, banks will need to ascertain what they need to adapt and strengthen in fraud prevention while also managing new regulatory and compliance requirements. Further, the areas of onboarding that need to be automated must also be considered as part of a holistic digital strategy, striking the balance between innovation and digital noise. For instance, Web3, the metaverse, digital assets and tokenisation are no longer the monopoly of global tech giants, but are increasingly being shaped by financial players who are having their relevance threatened. This Finextra report, which features expert views from ebankIT, EPAM Systems, Infosys Finacle, and Trustly, will explore topics that impact the digital banking sector and those that will be covered at Money20/20 USA 2022 in Las Vegas. Additionally, key insights from Wells Fargo, Plaid, Green Dot, Silicon Valley Bank, FXC Intelligence, Synapse, Navy Federal Credit Union, Branch, Citi, and the New York State Department of Financial Services will cover how organisations across North America are preparing for imminent change across the digital banking landscape.

1152 downloads