CFPB Launches Mobile Banking Inquiry, Requests Information (June 17, 2014)
The Consumer Financial Protection Bureau is turning its attention to mobile financial services and is seeking information from the industry and consumers.
Worldwide
Financial services failing to provide omnichannel experience customer expect
While nearly all of large financial services firms say customer experience management is important, the reality is that they are only about half as good at it as customers expect them to be.
Will N.Y. Bill Run Payroll Cards Out of Town? (June 16, 2014)
New York State lawmakers, along with Attorney General Eric Schneiderman, came out with guns blazing last week—their target: payroll cards.
Rep. Stivers: Don’t Let Regulation Stifle Innovation (June 16, 2014)
Congressman Steve Stivers (R-Ohio) stressed the importance of the prepaid card industry continuing its work of getting to know federal rulemakers and explaining to them the value the industry’s products provide to consumers, businesses and state and local governments.
HCE Continues to Gain Ground as PPS, Proxama Ink Deal (June 16, 2014)
More mobile wallet providers are pinning their hopes on host card emulation technology to facilitate NFC payments.
New Site Could Be Springboard to Alibaba’s U.S. E-Commerce Ambitions (June 16, 2014)
Chinese e-commerce giant Alibaba’s new U.S. retail portal eventually could present a challenge for some of the biggest names in the online shopping sector, including Amazon and eBay.
Outsourcing: making oversight a forward-looking benefit
Could the establishment of an enhanced outsourcing oversight capability do more for asset managers than simply satisfy the FCA? A more mature set of oversight metrics could be used to provide foresight into how the outsourcer might perform in the future.
The Bancorp Steps up BSA Compliance Efforts, Following FDIC Consent Order (June 13, 2014)
The Bancorp Bank, a wholly owned subsidiary of The Bancorp Inc., this week revealed in an 8K filing with the SEC that it’s stepping up its Bank Secrecy Act (BSA) compliance efforts in accordance with an FDIC consent order that went into effect June 5.
EBA report sets scene for collaboration on supply chain finance
The Euro Banking Association has published results of research and assessment work on supply chain finance topics and alternative electronic payments, including recommendations on managing financial industry collaboration and partnerships.
Waratek wraps vulnerable Java code in security blanket
Specialist Java start-up Waratek has announced a security product intended to protect older Java code – which can contain five to 10 security vulnerabilities per 10,000 lines of code – from security breaches.
Blog: The Overdraft Problem Is Really a Credit Problem
Rather than spending time debating which option is worse for consumers—overdraft or payday loans—or focusing solely on reining in overdraft, we ought to shift our energies to creating new credit products that meet consumers’ needs transparently and affordably.
Blog: Fight Fraud without Alienating Customers Using Mobile, Knowledge-Based Authentication
While asking a customer for multiple pieces of information and presenting him with various questions satisfies federal guidelines and other legal compliance, it can throw a major wrench in the prepaid card activation model. Out-of-wallet authentication must be accomplished in real time—and that means mobile.
Cordray: Proposed Rules for Prepaid Cards Due by ‘End of Summer’ (June 11, 2014)
The Consumer Financial Protection Bureau (CFPB) has bumped plans to release its proposed rule on prepaid cards to “the end of the summer,” according to Richard Cordray, the agency’s director.
U.K. Retailers’ Banking Push Continues with Tesco Current Account (June 11, 2014)
As U.K. retailers move further into providing personal banking services, supermarket giant Tesco has launched its first-ever current account.
Amazon Expands One-Click Payments to Subscriptions (June 10, 2014)
Less than a year after Amazon launched a one-click checkout feature for outside Web merchants, the online retail giant has unveiled a similar service for recurring and subscription-based payments.
American Express Goes Mobile in Uber Deal (June 10, 2014)
Uber, the global service that connects drivers with riders, has integrated American Express’ membership reward points into its iOS app, giving consumers another way to use their mobile devices to pay with American Express.
Report: EMV Makes Increasing Sense for Credit, Debit Cards (June 10, 2014)
The increasing risk of fraud, the rise of NFC, customer convenience and lower technology costs have combined to make the business case for EMV work for U.S. payment card issuers, according to a new report from Aite Group.
Cachet App to Expand FirstView’s Mobile Presence (June 10, 2014)
On the heels of its March acquisition of the moneto mobile payment platform from DeviceFidelity Inc., Minneapolis-based remote deposit capture specialist Cachet Financial Solutions announced it will be developing a prepaid mobile app for cardholders of FirstView, an Atlanta-based program manager and processor.
30:30 hindsight – Thirty years of Banking Technology
Banking Technology first appeared 30 years ago this month. David Bannister, the current editor, looks back at that first year of coverage …
Banks: get your act together or fail, EBAday conference told
Banks are paying lip-service to the concept of customer service and are years behind on innovation – and unless they literally get their act together by collaboratively embracing open software libraries and sharing applications and data, they will not survive.
EMERGE Recap: Digital Currencies Pack Potential to Serve the Underbanked (June 9, 2014)
The rise of Bitcoin and other digital currencies could present new opportunities for serving the underbanked once acceptance becomes more widespread, and payment providers and investors are building an infrastructure to support such uses.
EMV Inching into Prepaid with i2c, Banco do Brasil Americas Travel Card (June 9, 2014)
Despite some skepticism around the business case for prepaid issuers, in particular, to migrate to EMV in the U.S., another card targeting international travelers has made its debut.
Bitcoin ATM Allowed in China, Denied in Switzerland (June 9, 2014)
Bitcoin recently took one step forward and one step back as one provider launched its first Bitcoin ATM in China, while another Bitcoin operator has been denied doing the same more than 4,700 miles away in Switzerland.
Nasdaq OMX pursues data and technology revolution
Shifting settlement cycles, the rise of big data, global regulation and increasing demand for post-trade services are creating both challenges and opportunities that global exchanges would do well to face wisely, according to Lars Ottersgard, head of market technology and Eva Saidac, head of business development market technology at Nasdaq OMX.
People on the Move: Michael Dotsey, Federal Reserve Bank of Philadelphia
The Federal Reserve Bank of Philadelphia has promoted Michael Dotsey to senior vice president and director of research.
People on the Move: Dickson Chu, Ingo Money
Ingo Money, an Atlanta-based technology and solutions provider, hired Dickson Chu as executive vice president, corporate development and chief product officer.
People on the Move: Tim Sloane and Ben Jackson, Mercator Advisory Group
Mercator Advisory Group has appointed Tim Sloane vice president of payments innovation, and promoted Ben Jackson, formerly senior analyst, to director of the Prepaid Advisory Service.
People on the Move: Elizabeth Buse, Amanda Burton and Paulette Garafalo, Monitise plc
Monitise plc has announced a series of updates to its executive leadership team and board of directors, including the appointment of Elizabeth Buse to co-CEO of Monitise Group.
Company on the Move: paysafecard.com Wertkarten AG, Award Recipient
In addition to being the 2014 Paybefore Awards Europe winner in the Consumer Champion category, paysafecard.com Wertkarten AG, which is part of the Skrill Group, also has been included in The New Economy’s list of top 40 most innovative companies in the world.
Companies on the Move: The Members Group and TMG Financial Services, Marketing Honors
Des Moines, Iowa-based payments processor The Members Group and its sister company and credit card agent issuer TMG Financial Services received recognition from the Iowa Chapter of the American Marketing Association, both earning multiple NOVA Awards for excellence in marketing campaigns.
People on the Move: Walter Taylor, TSYS
TSYS, a Columbus, Ga.-based processor, has named Walter Taylor group executive, chief procurement officer.
Settlement Time
With the US markets heading in the same direction as Europe and elsewhere, the world is converging on T+2 settlement, albeit at different speeds.
Tokenisation may offer antidote to soaring cyber crime epidemic
As the number of cybercrime incidents increases, financial institutions and their corporate customers should take renewed steps to protect their data – including using tokenisation and hosted payments pages, according to a new report by Chase Paymentech.
Risk aggregation and reporting challenges intensify for banks
The past month has been a busy one for G-SIBs – global systemically important banks – as they confront the challenges of “what full compliance looks like” in the context of the Basel Committee on Banking Supervision and its Principles for Effective Risk Data Aggregation and Risk Reporting.
Amex Bolsters Bluebird, Serve with Budgeting Tools; Expands Free Reload Network (June 5, 2014)
New financial management tools for American Express Serve and Bluebird GPR prepaid cards announced today likely will strike a chord with cardholders—many of which already are displaying positive financial behavior, according to the payments network.
EMERGE Keynote: CFSI’s Tescher on Promoting Financial Health for All (June 5, 2014)
With the Center for Financial Services Innovation ringing in its 10th anniversary this year, CFSI President and CEO Jennifer Tescher took a short walk down memory lane—but kept a sharp focus on the road ahead—in her keynote address yesterday at EMERGE: The Forum on Consumer Financial Services Innovation.
Federal Banking Agencies Seek Comment on ‘Outdated, Unnecessary’ Regs (June 5, 2014)
A rare chance to trim back certain redundant financial regulations that seem to spread like ivy has arrived.
The challenge of intraday liquidity reporting
Reporting on the management of intraday liquidity risk will start on a monthly basis from 1 January 2015 to coincide with the implementation of the liquidity coverage ratio reporting requirements. Christian Goerlach of Deutsche Bank, takes a closer look at some of the issues facing global banks.
ISO 20022: where next?
An question that continues to be asked is will the increased adoption of ISO 20022 facilitate the consolidation of payments clearing utilities and see the introduction of new services for customers? This suggests that despite the fact that ISO 20022 has been around for more than decade, confusion still exists over what it is.
Visa Sets Standards for Prepaid Simplicity, Transparency (June 3, 2014)
Visa isn’t waiting for regulators to help simplify prepaid products for consumers.
