Tue.Feb 11, 2020

Q: Do investors believe bank digital transformations are succeeding? A: No.

Chris Skinner

Anyone who’s read this blog since 2007 or my books since 2014 will know that I have a regular rallying call: replace core systems; refresh the bank’s technology stack to an open architecture; embrace APIs, apps and analytics; deep dive on data; transform to be digital and not industrial; rethink … The post Q: Do investors believe bank digital transformations are succeeding? A: No. appeared first on Chris Skinner's blog. Digital Bank Future Grid

Varo’s bank charter process a test for consumer banking startups

Bank Innovation

This week, digital banking startup Varo received approval from the Federal Deposit Insurance Corporation, a significant milestone in the company’s three-year quest to become a bank.

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Things worth reading: 12th February 2020

Chris Skinner

Things we’re reading today include … Wells Fargo CEO Scharf shakes up management at scandal-hit bank ABN Amro’s fourth-quarter net profit misses on low interest and rising impairments German digital bank N26 pulls out of UK, blaming Brexit Blockchain: The revolution that hasn’t quite happened Challenger bank N26 to shut … The post Things worth reading: 12th February 2020 appeared first on Chris Skinner's blog. Reading

Mastercard wins approval to join China’s $27T market

Bank Innovation

Mastercard Inc. won approval to set up a bank card clearing business in China, gaining access to a $27 trillion payments market as part of the nation’s financial opening.

How to deliver the seamless bank experience your account holders expect

Mobile Payments Today

A survey of U.S. consumers indicated that 86% of bank account holders expect a seamless experience across channels and devices when conducting banking activities

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Digital bank N26 to depart the UK amid Brexit upheaval 

Bank Innovation

N26, the Berlin-based digital-only bank that has raised more than $670 million and gained 5 million users globally, announced Tuesday that it will leave the U.K. The company cited Brexit as the primary reason for the decision, saying it could no longer operate in the U.K.

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Shopify shares soar with payment and point-of-sale financing growth

Bank Innovation

Shopify Inc. reported fourth-quarter revenue that topped analysts’ estimates and gave an optimistic forecast for this year, boosted by holiday shopping and add-on services such as payment and marketing tools. The shares surged the most in almost four years. Sales grew by 47% to $505.2

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Mastercard Gets Nod To Join China’s $27T Payments Market

PYMNTS

China’s central bank gave Mastercard the go-ahead on Tuesday (Feb. 11) to set up a bank card clearing business, granting access to a $27 trillion payments market, according to reports. .

UK card startup Curve sets up US shop

Bank Innovation

based payments consolidation startup Curve has officially opened its first North American office in Brooklyn, N.Y., aiming to extend its products to a select group of U.S. customers by the end of this year. ? Curve plans to invest $17 million in research and development in the next decade.

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New Payment Rails Take On Real-Time B2B Friction

PYMNTS

The latest data from Nacha found a new record-high growth rate for adoption of ACH payments , with B2B payments showcasing a surge in adoption of the legacy payment rail that has recently turned to technologies that can augment the service, from the movement of transaction data with an ACH payment to the deployment of Same Day ACH. Yet this week’s look at payment rail innovation finds that many players in the B2B space are turning to develop new payment networks and services infrastructure from the ground up, rather than rely on new technology for legacy payment rails to improve the business payment experience. Signature Bank Mixes Rails For AP. Signature Bank, based in Chicago, announced a new accounts payable solution for its corporate clients designed to support businesses’ demand for choice when it comes to payment rails. The bank said last week that it is rolling out its Finrails AP solution, a business-to-business (B2B) payments automation solution that supports Visa commercial cards, ACH and paper checks. Designed with features to streamline the supplier on-boarding process, Finrails AP enables companies initiate transactions via a single payment file upload. In a statement, Visa Global Head of Business Solutions Kevin Phalen pointed to the “choice, flexibility and security” the B2B solution offers via supporting multiple payment rails. Cashfree Links India Firms To Faster Payments. In India, payments and banking technology firm Cashfree recently revealed its initiative to open up the nation’s real-time payment network to corporates with the launch of its UPI (Unified Payments Interface) stack, a solution designed to enable businesses to onboard to the rail. “As UPI continues to witness tremendous growth in India, we want to offer businesses a simple way to use the UPI infrastructure for the widest range of business payment applications,” explained Cashfree Co-Founder and CEO Akash Sinha in a statement. The UPI stack offers application programming interfaces (APIs) to support corporates UPI integration in a range of their back-office operations, including payments, collections and refund processing. Clear Embraces Blockchain For High-Volume Transactions. Blockchain startup Clear is embracing distributed ledger technology to facilitate high-volume B2B transactions, with a focus on the telecommunications sector, a market in which telco partners must exchange a high volume of payments and data while ensuring compliance to complex agreements between each other. The company, which recently spoke with PYMNTS about its technology following a funding round, has plans to offer its solution to other industries as well. According to Clear Co-Founder and Executive Chairman Eran Haggiag, existing payment rails cannot handle the data burden, particularly in cross-border payment scenarios. Yet, he told PYMNTS, Clear also aims to integrate with existing payment networks with the ability to both operate on top of current infrastructure, or bypass it altogether. Transparent Systems Wields Blockchain For Real-Time Settlement. Transparent Systems is another newly-funded startup wielding blockchain technology for B2B payments, though this company is targeting its solution toward real-time settlement. Company Co-Founder and Chief Technology Officer Jeff Kramer told PYMNTS in a recent interview that Transparent Systems is addressing the need for businesses to enable real-time settlement, particularly for repeat transactions on a consistent basis with their business partners, to mitigate counter-party risk. The company is “starting from scratch” to facilitate B2B payments, rather than using existing payment rails, he said, noting that doing so means addressing pain points from the get-go beyond the challenge of moving money, including easing friction in onboarding and integration. Banks Back Blockchain For Settlement, Too. Recent reports noted a group of financial institutions, spearheaded by UBS Group, has begin to develop a blockchain-powered cross-border trade settlement solution. The consortium is developing a digital token, the utility settlement coin (USC), to facilitate the movement of both money and data across borders, with UBS Head of Strategic Investment and FinTech Innovation Hyder Jaffrey explaining that the technology removes “settlement risk, the counterparty risk, the market risk. All of those risks add up to costs and inefficiencies in the marketplace.” Metro Bank Loops SMBs Into Bacs. In the U.K., Metro Bank recently announced its participation into the Bacs payment network, operated by Pay.UK, to facilitate Direct Debit origination for its business customers. The payment rail addition is the result of the bank’s partnership with business payments solution provider Bottomline Technologies, an announcement said, with Metro planning to roll out the service for small and medium-sized businesses (SMBs) in the “coming months.” The capability will enable businesses to initiate, collect and manage Direct Debit payments; according to Bottomline Managing Director, Europe Nigel Savory, SMBs “have traditionally found it challenging to get access to Direct Debit with all the benefits it brings.” Nacha Touts ACH’s Growth For B2B. As blockchain and newer real-time payment networks gain traction among businesses, Nacha says ACH is also seeing a boost in the B2B payments arena. The organization announced last week that the annual growth rate of The ACH Network’s volumes in 2019 reached a 12-year high, with 24.7 billion transactions completed on the network. B2B payments alone saw a 12 percent year-on-year increase, reaching 4 billion payments last year. Nacha also pointed to the growing adoption of its newest ACH service, Same Day ACH, valuing $247 billion in transactions last year — though Nacha did not reveal how much of that volume could be attributed to corporates using Same Day ACH. B2B Payments B2B Bacs Blockchain Cashfree NACHA News payment rails real time payments Same-day ACH Transparent Systems UPI

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Wells creates new digital innovation group as part of organizational overhaul

Bank Innovation

As part of a comprehensive organizational overall, Wells Fargo & Co. has created a group to focus on strategy, digital platforms and innovation, The Wall Street Journal reported today.

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T-Mobile Wins Court Decision To Take Over Sprint

PYMNTS

In a ruling that goes against a state-led lawsuit that aimed to stop a deal that would reshape the wireless industry, T-Mobile US Inc. has received court approval for its Sprint Corp. takeover.

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Wells Fargo hires another JPMorgan exec as shake-up continues

American Banker

Mike Weinbach will lead consumer lending as part of a reorganization that will change the responsibilities of three longtime bank executives. C-suite Consumer lending Wells Fargo Career moves Wholesale lenders Wealth management Mary Mack JPMorgan Chase Charles Scharf

Mastercard: The Role Of ‘Instant’ In Improving Consumer Financial Health

PYMNTS

To improve the financial lives of millions of Americans, speed matters — especially for FinTechs seeking to bring new products to market digitally and to target consumers underserved by traditional banking models.

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Realizing the Digital Transformation Vision in Financial Services

Perficient Financial Servies

My last post highlighted digital transformation and means to establish it. In the final post of this series, I analyze the call-to-action in implementing that vision.

SoftBank-Backed Brandless Goes Bust

PYMNTS

For its three years in operation, Brandless generated no shortage of buzz with its concept of “private label for less” and the idea that the best brand is no brand at all.

How should banks view mounting household debt?

American Banker

Depending on one's perspective, the surge in consumer borrowing is either a normal byproduct of a booming economy or a worrisome trend that portends a wave of delinquencies when the next downturn hits. Consumer lending Mortgages Student loans Auto lending Student loan debt Credit cards

FTC Big Tech Probe Expands With New Inquiries

PYMNTS

A Federal Trade Commission (FTC) investigation into the biggest five tech companies in the U.S. has expanded with a new inquiry about acquisitions, according to a report by The Wall Street Journal.

A new kind of British invasion: Regtech hackathons

American Banker

Tech sprints that bring regulators together with bank officials, data scientists and software companies originated in the U.K. and have crossed the pond into the U.S. Artificial intelligence Predictive analytics Analytics Regtech AML Data federation Citizens Bank

Online Orders Surge In China As Coronavirus Continues

PYMNTS

In China’s Wuhan district, the epicenter of the coronavirus outbreak, many residents are not allowed to leave their homes, much less go out shopping. And even if they could, many stores are closed.

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Bitcoin ATM makers see an opening as digital currencies come to stores

Payments Source

Traditional ATMs are vanishing in the U.K. and other parts of the world, but there may be a growing market for their crypto counterparts. Blockchain Digital currencies ATMs Bitcoin

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RBC Bank Automates AR Collection Reminders

PYMNTS

The Royal Bank of Canada (RBC) is the first Canadian financial institution to offer businesses Interac eTransfer: Bulk Request Money for the efficient management of accounts receivable (AR), RBC announced Tuesday (Feb.

Square combines services to address the modern acquiring market

Payments Source

Square is adding to its menu of services just as long-established competitors embed expanding payments technology into their own product mix. Alternative acquirers Acquirers Square Point-of-sale Retailers

Following Brexit, N26 Will No Longer Operate In The UK

PYMNTS

FinTech bank N26 , based in Germany, will no longer operate in the U.K. following Brexit, according to reports. N26 customers will need to transfer deposits, spend all their money or withdraw funds before their accounts close on April 15, 2020.

Wells Fargo escalates the API race

American Banker

When it comes to customers using application programming interfaces, the bank appears to be outpacing its rivals. Wells Fargo Data sharing Citigroup APIs

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Deliverr Puts $40M On The Board To Battle Amazon

PYMNTS

How does a company compete with Amazon? At Deliverr , they attack what Amazon won’t handle – and now they have the funding to prove it. Yesterday, the smaller-scale fulfillment company closed $40 million in Series C funding, led by Activant Capital, bringing its total capital raised to $70 million.

Veteran CEO retiring from Great Western in South Dakota

American Banker

Ken Karels will be succeeded by Mark Borrecco, who had been CEO of Rabobank's U.S. Ag lending Community banking Growth strategies Succession planning

Xero Partners With Square For Faster B2B Payments

PYMNTS

Cloud accounting firm Xero and payments services company Square are collaborating to offer small businesses a tool for faster invoicing and payments, according to reports on Tuesday (Feb.

6 statehouse issues on bankers’ radar

American Banker

Bankers groups are keeping close tabs on a host of legislative and gubernatorial proposals, from prize-linked savings accounts in Iowa to rent control in Massachusetts to a slew of bills modeled after California's recently passed data privacy law.

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Uber Creates Uber Money Team In India With FinTech Focus

PYMNTS

In a move that bolsters its financial technology presence in India, Uber has put an Uber Money team into place in Hyderabad. Uber Money teams are also located in Palo Alto, Amsterdam, New York and San Francisco tech centers, Livemint reported.

House lawmakers press Powell on CRA, climate change, stress tests

American Banker

Federal Reserve Chair Jerome Powell reaffirmed his agency’s skepticism of a Community Reinvestment Act plan proposed by other regulators, and said the Fed has an important role to ensure banks “are resilient against the longer-term risks from climate change.”.