Former FDIC Chair Sheila Bair writes in the FT that in light of the recent hack to Equifax should regulators be providing more entry points to customer data; she goes on to explain past bank hacks are typically done using a third party who has gained access to a customer’s data; other key points include can these service providers cover potential losses and are regulators forcing service providers into the most secure process. Source.
The UK's Payment Services Directive 2 (PSD2) has the potential to significantly change banking for consumers with access to open APIs; the article notes that banks that have only done the minimum to comply with PSD2 may run into issues if we ever see a PSD3; fully embracing PSD2 may save headaches for banks down the road; the trend of open APIs and data sharing is likely to make its way to the US; Japan is also leading the way in this area having explored domestic ACH on blockchain. Source
Mastercard said all consumers will be able to use biometric identification when they shop and pay by April of next year; banks offering Mastercard branded cards will have to have biometrics alongside the typical PIN and password; the company cited consumers preference for this type of authentication and new regulations like PSD2 in Europe; Mark Barnett, president, Mastercard UK and Ireland, tells Banking Technology: “It will make the purchase much smoother, and instead of having to remember passwords to authenticate, shoppers will have the chance to use a fingerprint or a picture of themselves.” Source.
At $13 billion of revenue and 800 million users in 2016, Office 365 roughly generated $20 per user. That's like Monzo, but with the user foot print of Ant Financial.
You might think the comparison is daft. But let's dig a bit deeper. Excel, and spreadsheets more generally, are the default behavior for managing personal finances. Even for financial advisors, who are supposed to be the precise niche leveraging financial planning software, Excel is the default "do nothing" option. If you are not paying for digital wealth software as an advisor, you are doing it in Excel.
In an op-ed in the FT, the chairman of BBVA, Carlos Torres Vila, argues for the expansion of European open...
Europe's PSD2 will require financial institutions to share data with third party service providers creating a new market opportunity for fintech developers with guaranteed account data access; in the US fintechs must still rely on relationship building to secure data partnerships thus making technology development more challenging; American Banker reports on details of a recently formed association that's seeking to make data access easier; the Consumer Financial Data Rights (CFDR) consortium includes 31 data aggregators and fintech companies lobbying for data access solutions and agreements; American Banker also outlines the progress that has been made in data sharing and proposals from the CFDR. Source
In the "Top 10 Disruptive Technologies in Fintech" report, Juniper identifies the emerging technologies that are disrupting and influencing financial services in 2017; the top three include PSD2 and open APIs, regtech, and chatbots; at the top of the list, open APIs are a trend influencing financial services globally and Europe's PSD2 legislation is expected to help accelerate innovation. Source
According to a report by Which almost 92 percent of consumers have not heard of open banking; slow adoption by banks is one reason for the low numbers; another reason is many people have started to use non bank services for payments or other tasks, the term open banking is still relatively new; banks are starting to innovate, by building or partnering, and open banking will only help to push innovation forward. Source.
Despite the fact a recent study suggests only 22% of those in the UK had even heard of “open banking”...
Alibaba’s Alipay was granted an eMoney license in Luxembourg to allow the company to serve customers across Europe; the eMoney...