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Archive for tag: collaboration

June Highlights in the Financial Industry

 

 

Let's take a look at what June had to offer us in the banking and FinTech bubble.

HINT: it's mostly about cooperation in the industry, RegTech and open banking, with a dash of cybersecurity and trends.

 

 

Cross-border Cooperation in FinTech

 

After signing a FinTech co-operation agreement with Indonesia earlier this year, Australia pushed the fast-forward button in June and inked 3 more such agreements, with Japan, Malaysia and Hong Kong.

 

The Australian Securities and Investments Commission (ASIC) announced the completion of these co-operation frameworks in order to promote innovation in financial services in their respective markets and more agreements are expected in the following months.

 

Moreover, according to recent research, Australia is significantly ahead of the UK and the US in the payment technology race and their cashless future with instant payments is galloping to become reality.

 

But Australia isn't the only one to embark on the FinTech collaboration journey at full speed. Singapore is breathing down its neck after signing a similar co-operation agreement with Denmark, right after the Money 20/20 Europe conference in Copenhagen.

 



"Financial innovation is not confined

to national borders."



Thomas Brenoe

Deputy Director General, Danish FSA



- on Singapore-Denmark agreement -


 

This collaboration aims to help FinTech companies in both countries expand into each other's markets, as well as explore joint innovation projects together, sharing information on emerging market trends and their impact on regulation.

 

Furthermore, Singapore regulators have recently proposed rules that will make it easier for banks to conduct or invest in non-financial businesses such as e-commerce and digital-payment platforms.

 

Singapore's proposals come as financial technology and e-commerce giants are expanding financial services including digital payments in Southeast Asia as part of their global strategy, thus helping banks to better compete with non-bank firms in the area.

 



"The future belongs to the technological giants and to the banks that copy, acquire or collaborate with FinTechs.

It's neither cheap nor easy, but the alternative is irrelevance."


Brett King

CEO, Moven


 

 

RegTech Status in Asia-Pacific. Brief Pit Stop in Bahrain

 

According to the latest news, RegTech is getting ready for a great start in Southeast Asia, where financial institutions often have to deal with more than a dozen different regulatory regimes. But there are 2 sides to this coin...

 

Though RegTech is meant to maximize financial performance and risk management, some international banks anticipate the costs of complying with the new rules to be so high that they are considering leaving the Asia-Pacific region.

 

Turning to the Middle East, it’s worth mentioning Bahrain's central bank (CBB), who launched on June 18 a regulatory sandbox which will enable FinTech companies to test out their products and services. The bank's governor explained this move as: "We are witnessing how technology is defining financial services and CBB remains at the forefront of these developments to enable the industry to advance similarly."

 

 

 

The Latest Studies in the Financial Industry

 

A. Cybersecurity Insights

 

Cyberattacks impacting financial institutions are largely executed for direct financial gain, very few aiming to hurt the brand or customer loyalty. However, these are prominent side effects, of course.

 

More important is how these attacks take place: 88% of security incidents are either web app attacks, DDoS attacks, or payment card skimmers, with a vast majority targeting ATM machines – 66%. More information on this topic can be found in Verizon's annual Data Breach Investigation Report (DBIR).

 

 

B. Top Trends

 

Can you guess what all the latest buzz is still about? Suuure... Artificial Intelligence, blockchain and open banking. The prediction goes like this: AI will become the main way banks interact with their customers in the next 3 years, blockchain adoption will lead to faster transactions and lower costs, while open banking will keep increasing competitiveness.

 

Another aspect to take into account is the necessary transformation of commercial banks in the direction set out by all those disrupting FinTechs that focus on the customer. This is expected to benefit banks in terms of increased profitability and efficiency, with a plus on the safety and soundness side, building engagement on a digital experience.

 

 

C. Open Banking and APIs

 

This is what the future of banking relies upon: third parties developing new products and services through use of APIs, followed by a FinTech-bank collaboration to leverage their complementary strengths and enhance the customer experience.

 

Recent studies underline an otherwise expected fact: FinTechs are more likely than traditional banks to provide positive banking experiences, and that is partly because they're not dragged down by the legacy technology and the outdated processes that banks still have to deal with.

 

Over 90% of banks and 75% of FinTech companies say they expect to collaborate in the future, since open APIs will likely lead to a more effective use of data, the rise of new business models, and enhanced customer trust. All these and more, in the World Retail Banking Report 2017.

 

 

 

 

EBADay from the outside

EBADay - actually it would be more appropriate to call it EBADays, as it lasts for exactly 2 days - is an annual forum organized by the Euro Banking Association and Finextra Research, which gathers payments experts from Europe and the rest of the world. Some, such as Gary Wright, even dare say that EBADay "has grown enormously and now rivals SIBOS for quality of speakers, delegates and exhibitors". This where I have to strongly agree, as we happen to be in that number, having been both Sibos and EBADay exhibitors for quite some time now :).

 

 

 

This year Madrid was chosen as the town fit for hosting such an event, the conference and exhibition taking place at the beautiful Feria de Madrid convention centre.

 

We have by the past exhibited at this event with our former identity, Business Information Systems, 2011 being a premiere for presenting ourselves under the new trade name of Allevo.

 

 

 

There is a very rich amount of information on EBADay, which has travelled over Twitter with the speed, well not with that of light, but with that of web 2.0. Even our Allevo Daily was 50% taken over by EBADay stories, tweets, pictures & videos.

 

It is very interesting to get to see stories reported through such diverse pairs of eyes. Of course the Finextra guys did their utmost and came forward with a professional very Sibos-like TV: the EBADay TV, which could easily take more than just 2 days to fully follow. Then a whole lot of people shared insights plus their own understanding and opinions in either thorough blog posts or simple tweets. For someone who only virtually observes the event, such as myself, this type of community is a real gold mine. There's plenty of things to see and a-ha moments to catch.

 

Judging from outside, the main word on everybody's lips was, as announced and expected, the one and only: SEPA. It comes as no surprise that people calling for an end date of the end date have lately started to multiply.

 

 

My colleagues temporarily dispatched to Madrid confirmed that the main subjects of debate were centred around this topic: is there need for two distinct end dates or only one? One end-date for SEPA credit transfers and another one for direct debits or would it be possible to set one single *mandatory* deadline which could cover both?

 

Aside from the star of the show, SEPA, and other collateral boring subjects, such as Basel III regulations and alike, the next buzz word the EBADay tweetcloud highlights is innovation. And something that always comes up when talking about innovation is collaboration. On collaboration I'm only going to quote JP Morgan's James Barclay, whose line I picked up via EBAday 2011: the Sepa journey nears its end: "Collaboration has driven me to a shrink - the last stage of collaboration is an EBADay panel".

 

So what my colleagues have shared of their own personal insights is that there is hope for SEPA after all. EBADay seems to have made people very optimistic on the subject or anyhow, more than before June 15th 2011.

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