Viewpoint: Enough with the 2016 Predictions—Let’s Think Bigger!
Forget predictions. We’ve got work to do. There are several significant challenges for payments that need to be solved from fixing cross-border payments to making payments disappear.
Analysis
Viewpoint: The Future of Payments Is Already Here, So What’s Next?
With more contactless cards in the U.K. than people, the new age of payments is already here. But we’re not done yet, and thanks to biometrics, we could be the next form factors.
CFPB Complaint Report: Prepaid, Money Transfers Less than 2% and 1% of Consumer Complaints (Jan. 12, 2016)
The CFPB recently released its November complaint report or “snapshot” of consumer complaints it received through its Website for the three month average between September 2014 and November 2015. Although prepaid saw a jump of 215 in complaint volume, prepaid complaints still represented only 2 percent of all complaints the CFPB received during the period.
FinCEN Seeks Comment on Cost Analysis of CDD Proposal (Jan. 12, 2016)
A proposed rule that would place new Customer Due Diligence requirements on financial institutions—including prepaid issuers—has taken a step forward with the release of two new documents estimating the impact and cost the proposed rule would have on regulated institutions and seeking comment from stakeholders by Jan. 25.
Keeping file-based threats out of bank vaults
While mention of bank robberies will often conjure images of masked criminals and high-speed car chases, most modern instances of the crime are being conducted from behind computer screens. In addition to the lure of stealing cash, these criminals are going after banks for valuables such as the personal data of customers, details of mergers and acquisitions between companies and the private tax information of corporations, data is fast becoming an incredibly valuable commodity in its own right
Trust, data, and why marketplace lenders are here to stay
New peer-to-peer platforms that match lenders with borrowers are proving to be more efficient than banks at connecting those with money and to those that need money. Known as marketplace lenders, this new industry is still very much in its infancy, currently representing a tiny proportion of total loans compared to bank lending
People’s Bank of China Revokes Prepaid Provider’s License (Jan. 7, 2016)
The People’s Bank of China (PBC), the country’s central bank, this week has revoked the license of Shanghai Chang Gou Enterprise Services, a prepaid card-issuing company, preventing it from selling prepaid cards, according to Reuters.
Two Lenders Settle Charges in $353 Million FTC Case (Jan. 6, 2016)
Two payday lenders have settled Federal Trade Commission charges over allegedly hitting customers undisclosed and inflated fees.
Industry Views: 2015 Game-Changers, Priorities for 2016
To kick off the New Year, we asked payments industry thought leaders to tell us what happened in 2015 that will most influence payments in 2016 and to discuss their hottest priorities for the next 12 months. Responses run the gamut from a combined Visa/Visa Europe to compliance, wearables and the impact of Chase Pay.
From training to trendsetting: how institutions reverse the fintech migration
Aspiration doesn’t look like it used to. The face of Eighties ambition was a power dresser, clad in a suit with shoulder pads as they rushed to Wall Street to earn as much as they could, whereas today’s bright young things are more likely to be found sipping lattes at a co-working space in Silicon Valley
Closed-Loop Gift Cards Set for 6 Percent Growth this Holiday Season
Closed-loop gift cards appear poised for growth for the second consecutive holiday season after 2012 and 2013 declines, thanks in part to last-minute shopping and young consumers, according to a new report from Mercator Advisory Group Inc.
Idaho Ag Dept. First to Launch NIC’s eGovExpress Digital Wallet (Dec. 23, 2015)
Idaho’s Department of Agriculture is the first government department to launch the eGovExpress digital wallet developed by Olathe, Kan.-based NIC Inc., provider of official government Web portals and digital government services for more than 3,500 federal, state and local government agencies.
Fintech: friend or foe?
While the mainstay of the financial services industry was busy dealing with the global financial crisis in 2008, start-up organisations in Silicon Valley, New York, London and other major financial and technology hubs were turning their attention away from social media plays and looking to reinvent financial services.
Viewpoint: Staying Relevant through Gift Card Innovations
There’s no questioning the popularity and appeal of gift cards—especially during this time of the year. Giving recipients the ability to treat themselves to something they really want or need has become prized among gift buyers. What’s even more exciting is how the concept of gift cards continues to evolve as new brands and card types launch.
Viewpoint: Prepaid Regulations Should Go on a New Year’s Diet
The CFPB needs to return to its original plans on prepaid regulations and put its proposed rules on a New Year’s diet. By issuing rules focusing solely on disclosure, the CFPB could issue guidance earlier in 2016 that would help consumers, prevent access disruptions, and potentially reduce the size of the landfill needed to for the mountains of noncompliant cards and marketing materials.
Blockchain: ushering a new era in fintech
The distributed ledger – the central nervous system of the Bitcoin system – is the most sweeping departure from the long-standing financial bookkeeping practices followed since the codification of the Medici’s double entry accounting system.
CFPB Releases Student Scorecard, Calls Colleges on the Carpet (Dec. 17, 2015)
The CFPB yesterday released its “Safe Student Account Toolkit,” which includes a scorecard to help colleges pick the best school-sponsored deposit or prepaid accounts for their students.
In third parties we (mis)trust?
Technology is transforming trust to the point that people find themselves trusting others with whom they’ve had no experience, on eBay or Facebook, more than banks they’ve dealt with their whole lives.
Currency Cloud Report: Filling the Need for Speed (Minus Cost/Complexity) (Dec. 15, 2015)
London-based B2B fintech company Currency Cloud recently released a trend report revealing the need for faster, less expensive and less complicated ways to make cross-border business payments. With $18 million in funding fueling its U.S. expansion, Currency Cloud says it’s taking on those cross-border pain points.
Executive Profile: One on One with Joby Orlowsky, Discover Network
Joby Orlowsky is a die-hard Cubs fan—is there any other kind?—but the Chicago native’s optimism extends well beyond baseball. After nearly 20 years at Discover, Orlowsky is animated when he talks about the future of payments and Discover’s place in it. And unlike some, he’s not spooked about a potential fintech bubble.
Helping millennials chart today’s financial waters
Millennials – those highly sophisticated, tech-savvy men and women born between 1980 and 2000 – present enormous opportunities for banks and other financial institutions. Yet to be successful, these businesses must understand and meet the needs of a generation that grew up having it all, seeing it all, and being exposed to it all since early childhood – and that is no easy task.
Legacy systems – still the big barrier to banking innovation
Outdated legacy IT systems are a major stumbling block for traditional UK high street banks as they look to fight back against their often more agile rivals, widely known as ‘challenger banks’, who unhindered by complex, unwieldy IT infrastructures are typically better positioned to innovate.
Senator Menendez Strikes at Prepaid Again
It’s almost become a holiday tradition for Senator Robert Menendez (D-N.J.) to propose prepaid legislation in December. His previous three attempts went nowhere, but this time he proposed his bill in November. Still, more pressing issues, such as spending and cybersecurity, may keep his measure on the back burner for now.
Viewpoint: Overcoming Prepaid Debit’s Value Issue
Churn is by far the biggest challenge facing prepaid debit card companies. Issuers can combat it by tapping smartphones and real-time analytics to deliver personalized services through a preferred communication channel.
Viewpoint: EMV’s UX Fail and the Case for Contactless
Poor user experience with EMV could be a boon for contactless cards and NFC mobile payments. But retailers could take immediate steps to improve the UX with contact EMV, starting with cashier education.
Viewpoint: The Payments Landscape: The Friction is Real
When it comes to the payments, there are more choices than sweet treats at Dylan’s Candy Bar in NYC (i.e., the world’s largest candy emporium!). The payments landscape is likely to become increasingly confusing and fragmented as retailers ramp up their efforts to influence buying decisions. If we don’t help our members evolve and understand how things are changing, credit unions risk losing the transaction and engagement.
EU Fee Caps Effective Today (Dec. 9, 2015)
The European Union’s cap on fees banks can charge retailers for processing credit and debit card payments went into effect today, but there are some questions whether the measure will have the desired effect.
Blockchain Ready?
2015 has been a year of extensive discussion about what role blockchain can play in making processes in the financial services industry more efficient. It has also been a year where both banks and start-ups have been testing whether distributed ledger technology can adequately replace costly legacy systems and improve securities processing, writes Brian Collings. […]
Time to think strategically about Basel capital calculations
As part of the ongoing Basel reforms, the Bank for International Settlements is busy rewriting the rules that govern how much capital banks must maintain in order to mitigate different types of risk. So far the Standardized Approach for Measuring Counterparty Credit Risk Exposures and the Fundamental Review of the Trading Book have garnered the most attention. However, these are just two components of a much larger package of changes to the Basel capital requirements, which banks need to think about holistically and start factoring into their technology programs now
Getting to grips with mobile security
The sensors built into mobile devices offer a whole new way of identifying their users though biometric techniques, according to security expert Uri Rivner.
Target Reaches $39.4 Million Breach Settlement with Banks, MasterCard (Dec. 2, 2015)
Target is moving another step forward in its attempts to put its 2013 data breach behind it.
House Committee Applauds Mobile Payments Innovation (Dec. 2, 2015)
In a Congressional hearing yesterday, lawmakers examined the role mobile payments technologies are playing in disrupting traditional payments, paying particular attention to how mobile has increased payments security and enabled small businesses and underbanked consumers to access electronic payments.
Gift Cards, E-Commerce Drive Holiday Shopping
U.S. shoppers flocked to physical and online stores during the Thanksgiving weekend, with more than 151 million Americans shopping in-store and/or online, based on data from the National Retail Federation. The shopping frenzy is expected to continue, with Cyber Monday deals projected to drive 121 million U.S. consumers to shop online. Average spending per shopper was $299.60, and gift cards were especially popular, comprising a whopping 76.6 percent ($229.56) of that average total.
ERPB Approves Instant Payments Plan (Nov. 29, 2015)
Instant payments are a step closer to becoming a reality in Europe, now that the European Payments Council (EPC) has submitted and received approval on its proposal for the design of a pan-European instant credit transfer framework.
Losing the risk management war
It’s no secret that past risk management practices and regulatory frameworks failed with respect to the global financial crisis. There were a number of reasons behind this, ranging from an overreliance on quantitative analysis to poor risk governance and frameworks, not to mention a lack of understanding around concentrated risk build-up such as leverage, convexity […]
A lesson in effective stress testing
Integrated stress testing is the preferred tool from a supervisory perspective. And that’s on a global basis. It may not be new, but it is featuring increasingly higher on the regulatory agenda and so understanding the technological opportunities is all important. A key building block for effective and integrated stress testing is an integrated balance sheet strategy
Why 2016 is the year asset managers must take back control
There is an uncanny similarity between Prime Minster David Cameron’s emphasis of moving from a “low wage, high tax, high welfare society to a higher wage, lower tax, and lower welfare society” and a shifting focus among the asset management community.
Getting fintech on bank CIOs’ radar
It is a well-known fact that banks have two types of technology: Cold War-era IBM mainframes running Cobol-based batch programmes and Evil Genius HFT systems. The mundane truth is that any financial services operation will have a range of hardware and software systems of different vintages and spend a lot of time and money living with the consequences.
Viewpoint: Holiday Forecast: Gift Cards Continue to Expand the Online and Mobile Landscape
It should be no surprise to anyone that gift cards are forecasted to be uber popular again this holiday season. However, it will be crucial for those in the prepaid industry to be mindful of plugged-in shopper preferences to capture holiday spend.
Viewpoint: Why Your Survival Rests on Customer-Centric Strategies
Knowing your customer is taking on new meaning for retailers, If you want to thrive, you must give your customers a personalized shopping experience with a simple integrated payments process.
