Digital Banking in Latin America: Best Practices and the Shift Toward Banking As a Service
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Next-Gen Technology Transformation in Financial Services
April 2020 Next-gen Technology transformation in Financial Services Introduction Financial Services technology is currently in the midst of a profound transformation, as CIOs and their teams prepare to embrace the next major phase of digital transformation. The challenge they face is significant: in a competitive environment of rising cost pressures, where rapid action and response is imperative, financial institutions must modernize their technology function to support expanded digitization of both the front and back ends of their businesses. Furthermore, the current COVID-19 situation is putting immense pressure on technology capabilities (e.g., remote working, new cyber-security threats) and requires CIOs to anticipate and prepare for the “next normal” (e.g., accelerated shift to digital channels). Most major financial institutions are well aware of the imperative for action and have embarked on the necessary transformation. However, it is early days—based on our experience, most are only at the beginning of their journey. And in addition to the pressures mentioned above, many are facing challenges in terms of funding, complexity, and talent availability. This collection of articles—gathered from our recent publishing on the theme of financial services technology—is intended to serve as a roadmap for executives tasked with ramping up technology innovation, increasing tech productivity, and modernizing their platforms. The articles are organized into three major themes: 1. Reimagine the role of technology to be a business and innovation partner 2. Reinvent technology delivery to drive a step change in productivity and speed 3. Future-proof the foundation by building flexible and secure platforms The pace of change in financial services technology—as with technology more broadly—leaves very little time for leaders to respond. -
Neobank Varo on Serving Customers' Needs As P2P Payments See A
AUGUST 2021 Neobank Varo on serving customers’ needs as P2P payments see Nigerian consumers traded $38 million worth of bitcoin on P2P platforms within the past month a rapid rise in usage — Page 12 (News and Trends) — Page 8 (Feature Story) How P2P payments are growing more popular for a range of use cases, and why interoperability will be needed to keep growth robust — Page 16 (Deep Dive) © 2021 PYMNTS.com All Rights Reserved 1 DisbursementsTracker® Table Of Contents WHATʼS INSIDE A look at recent disbursements developments, including why P2P payments are becoming more valuable 03 to consumers and businesses alike and how these solutions are poised to grow even more popular in the years ahead FEATURE STORY An interview with with Wesley Wright, chief commercial and product officer at neobank Varo, on the rapid 08 rise of P2P payments adoption among consumers of all ages and how leveraging internal P2P platforms and partnerships with third-party providers can help FIs cater to customer demand NEWS AND TRENDS The latest headlines from the disbursements space, including recent survey results showing that almost 12 80 percent of U.S. consumers used P2P payments last year and how the U.K. government can take a page from the U.S. in using instant payments to help SMBs stay afloat DEEP DIVE An in-depth look at how P2P payments are meeting the needs of a growing number of consumers, how 16 this shift has prompted consumers to expand how they leverage them and why network interoperability is key to helping the space grow in the future PROVIDER DIRECTORY 21 A look at top disbursement companies ABOUT 116 Information on PYMNTS.com and Ingo Money ACKNOWLEDGMENT The Disbursements Tracker® was produced in collaboration with Ingo Money, and PYMNTS is grateful for the companyʼs support and insight. -
Pa Perspectives on Nordic Financial Services
PA PERSPECTIVES ON NORDIC FINANCIAL SERVICES Autumn Edition 2017 CONTENTS The personal banking market 3 Interview with Jesper Nielsen, Head of Personal Banking at Danske bank Platform thinking 8 Why platform business models represent a double-edged sword for big banks What is a Neobank – really? 11 The term 'neobanking' gains increasing attention in the media – but what is a neobank? Is BankID positioned for the 14future? Interview with Jan Bjerved, CEO of the Norwegian identity scheme BankID The dance around the GAFA 16God Quarterly performance development 18 Latest trends in the Nordics Value map for financial institutions 21 Nordic Q2 2017 financial highlights 22 Factsheet 24 Contact us Chief editors and Nordic financial services experts Knut Erlend Vik Thomas Bjørnstad [email protected] [email protected] +47 913 61 525 +47 917 91 052 Nordic financial services experts Göran Engvall Magnus Krusberg [email protected] [email protected] +46 721 936 109 +46 721 936 110 Martin Tillisch Olaf Kjaer [email protected] [email protected] +45 409 94 642 +45 222 02 362 2 PA PERSPECTIVES ON NORDIC FINANCIAL SERVICES The personal BANKING MARKET We sat down with Jesper Nielsen, Head of Personal Banking at Danske Bank to hear his views on how the personal banking market is developing and what he forsees will be happening over the next few years. AUTHOR: REIAR NESS PA: To start with the personal banking market: losses are at an all time low. As interest rates rise, Banking has historically been a traditional industry, loss rates may change, and have to be watched. -
Online Or Neobanks: Convenience Could Cost You!
Online Or Neobanks: Convenience Could Cost You! As if choosing a property isn’t hard enough, there is also the The main difference between an online/digital bank and a added challenge of selecting the right lender and home loan Neobank is that a Neobank is completely online and does not use from the vast number of options available. any existing infrastructure or systems to operate2. Whether it is your first home, upgraded next home, investment ING and ME are examples of banks using existing banking property or a refinance, deciding where to finance your home infrastructure to offer online finance but they are not Neobanks. loan can be a tough decision – and rightly so. There are over 130 lenders in Australia!1. Plus, there is the added trend of online Online and Neobank lending sound too good to be and Neobank lending. true? More and more Australians are turning to online lenders when Probably because for many, it could be. taking out a loan. Why? Because of convenience, self-service Why? and low interest rates. • Less personalised service – There is less focus on personal Online banks relationships and recommending loans suited to your specific An online bank is an organisation that operates solely, or mostly, situation. online. Emerging fintech lenders promise streamlined home loans • Limited range – Online lenders generally offer a limited range as easy as 1-2-3 through the digital platform. of products – no frills to keep the interest rates down! Do you Some online banks are backed by larger more well-known really know the product that suits you best? traditional banks. -
The Future of Banking Is Open
Visa Consulting & Analytics The Future of Banking is Open 1 Visa Consulting & Analytics Open banking What it is, why it matters, and how banks can lead the change If a consumer wants to block out the world around them, a single app gives them access to hundreds of thousands of songs and podcasts; over time, this app learns about their tastes and suggests new tunes for their listening pleasure. As technology evolves and artificial intelligence becomes more pervasive, consumers are beginning to ask why managing money cannot be as intuitive as managing music? Data is a key ingredient in offering personalized financial services, but it has been traditionally hard for consumers to share sensitive information with third parties, in a secure and consistent way. In response, financial innovation globally by both traditional and emerging players has taken place. This has led to an increase in financial innovation globally that is driven partly by the market and partly by regulation. As the world responds to the COVID-19 pandemic, one of the clear outcomes is accelerated digital engagement, something that can only be done quickly and at scale through an open ecosystem and the unbundling of financial services. In this paper, we look at what open banking is, the way some of the world’s most forward-thinking banks are responding, and how Visa Consulting & Analytics can help in transforming your business. 2 Contents What is open banking, and why does it matter? What is driving open banking? What are the consumer considerations? What are the commercial implications for ecosystem players? How are banks responding? Five strategies to consider How can Visa help you take the next step on your open banking journey? 3 What is open banking, and why does it matter? Broadly put, the term open banking refers to the use of APIs (Application Programming Interfaces) to share consumers’ financial data (with their consent) to trusted third-parties that, in turn, create and distribute novel financial products and services. -
Building a Customer-Centric Digital Bank in Singapore: It Takes an Ecosystem
White Paper Digital Banking EQUINIX AND KAPRONASIA BUILDING A CUSTOMER-CENTRIC DIGITAL BANK IN SINGAPORE: IT TAKES AN ECOSYSTEM Contents The dawn of digital banking in the Lion City Defining a value proposition . 2 No digital bank, in the purest sense of the term, Digital banking in Singapore amid COVID-19 . 4 currently exists in Singapore. While there are many fintechs, most provide only digital financial services The digital banking opportunity: that do not require a banking license: digital wallet retail and corporate . 5 services, cross-border payments and various virtual- asset-focused services. A digital bank (also known Key success factors for digital banks . 7 as a “neobank” or “virtual bank”) differs in that it is licensed to both accept customer deposits and issue 1. Digital agility to support a better loans, whether to retail customers, corporate customers customer experience. .7 or both. Singapore’s financial regulator, the Monetary 2. Favorable cost structure. .8 Authority of Singapore (MAS) plans to release five digital bank licenses in total and will announce the 3. Optimizing security .............................8 successful licensees in the second half of 2020. The licensed digital banks will likely then launch in mid-2021. Conclusion: The ecosystem opportunity . 10 While many less-developed Southeast Asian economies are leveraging digital banks to focus on financial inclusion, the role of digital banks in Singapore will be slightly different and focused on driving innovation. Bringing together traditional financial services firms, fintechs, other tech companies and even telecoms Singapore will become one of the firms, digital banks could act as a catalyst for financial focal points of Asia’s digital banking innovation in Singapore and help the city-state maintain evolution when the city-state awards its competitive advantage as a regional fintech hub. -
Canada Fintech Report 2021 | Financial Technology | Accenture
Collaborating to win in Canada’s Fintech ecosystem Accenture 2021 Canadian Fintech report Contents Introduction 3 Executive Summary 4 Part 1: Canadian Fintech Ecosystem Analysis 5 Part 2: Financial Services Industry Outlook and Trends 34 Part 3: Global Fintech Ecosystem Benchmarking 46 Part 4: The Canadian Fintech Ecosystem: Looking Ahead 54 Appendix A: Global Fintech Ecosystem Benchmarking Methodology 58 Appendix B: Definition of Funding Types 61 References 62 2 Introduction As the pace of change continues to accelerate, industry boundaries blur; financial institutions, now more than ever, are adopting the mindset of technology companies. As both market and regulatory forces push these Canadian companies into the spotlight, the financial services ecosystem may be poised to deliver the most personalized and seamless digital experiences Canadians have ever seen. This report offers insights into this ecosystem for 2020 in four parts: Part 1: Canadian Fintech Ecosystem Analysis Part 3: Global Fintech Ecosystem We examine the current state of the Canadian Benchmarking fintech ecosystem - at both the national and Using our benchmarking model, we rank city level - in terms of growth, talent, and four Canadian cities (Calgary, Montreal, investment. We also discuss how incumbent Toronto and Vancouver) against 16 leading financial institutions (FI) are responding and and emerging fintech hubs around the collaborating, the importance of incubators world. This quantitative model draws on 46 and accelerators, and the government’s role in individual data points from various public supporting even further innovation. and proprietary sources, distilled into five key metrics. Part 2: Financial Services Industry Outlook and Trends Part 4: The Canadian Fintech Ecosystem: We elaborate on key emerging trends we Looking Ahead see as influencing the future direction of the Finally, we summarize our findings and explore Canadian financial services industry. -
Designing a Sustainable Digital Bank Learning from the Digital Pioneers
IBM Sales and Distribution Banking White Paper Executive Summary Designing a sustainable digital bank Learning from the digital pioneers In an era of unprecedented change, technology offers banking clients greater access to information than ever before. Out of this revolutionary advance, a new class of smarter and more demanding customers has emerged. In tandem, new financial players are moving quickly to offer new compelling digital services. As with every major change triggered by technological advancement, there are clear winners and those who are unable to adapt. Banks that embrace digitization have an opportunity to generate new business value and better engage with their customers. The surge of new entrants riding the digital wave Banking has traditionally been a conservative industry that enjoys rela- tively high barriers to entry due to regulations that restrain access for non-bank competitors. New digital technologies—driven by cloud, mobile, social and analytics—have drastically lower entry barriers. Regulators in many countries have also relaxed regulations to encourage innovations in the banking industry. As a result, many new all-digital financial services firms, unencumbered by older less agile systems are aggressively pursuing customers by addressing their needs in new and dis- tinct ways. For instance, Chinese internet giant Tencent created WeBank hoping to capitalize on its vast user base of microblogging and peer-to- peer chatting services. E-commerce leaders such as Tesco in Europe, Rakuten in Asia-Pacific and Walmart in the US have also entered the IBM Sales and Distribution Banking White Paper Executive Summary banking sector. Globally, entrepreneurs and even traditional ●● Model C, a digital bank subsidiary: Many banking innovators banks are creating digital-only banks or neobanks. -
Latin America: Global Investors' New Fintech Frontier
Co-authored by WHITE PAPER Latin America: Global Investors’ New Fintech Frontier Insights from Leading Banks, Venture Capital and Private Equity Investors 1 LATIN AMERICA: GLOBAL INVESTORS’ NEW FINTECH FRONTIER WHITE PAPER EXECUTIVE OVERVIEW CONTENTS Mega-deals and marquee global 1. A Market Inflection: Global investors are making headlines in Latin Investment in Latin American American fintech. The region is digitally- Fintech .................................................... 3 connected and rife with underbanked populations and a burgeoning talent 2. Insight into LatAm’s Fintech pool. Available early and later-stage Arrival ...................................................... 5 growth capital from both local and global venture capital, private equity and corporate ventures, rounds out 3. Dynamics Driven by Outside the situational factors essential for a Investors ................................................. 8 thriving fintech hub – and accelerates opportunities for founders and funders. 4. Factors for Long Term Success ....12 This paper captures the global investor point-of-view, while exploring the trend 5. Key Questions for the Future ........16 of ecosystem improvements that have led to LatAm’s breakout, including the emergence of new talent, early startup 6. Appendix: Research Sources .........17 successes and ambitious regulatory reform. The paper showcases how these sector changes have invited deeper investor participation – and examines the outside influence of global investors’ new practices and perspectives. It concludes with an exploration of the opportunities and challenges these marketplace shifts create. The insights in this report are based on interviews with leading, active global investors as well as fintech sector trend research. The paper is intended for global investors pursuing or considering the Latin American fintech sector; fintechs in the region open to funding from investors based outside the region; and all others interested in trends and data behind the growth story that is LatAm fintech. -
French Fintech Ecosystem
About Exton Consulting Exton Consulting is a strategy and management consulting firm, founded in 2006 and specializing in financial services: insurance, retail banking, cards and payments, CIB & Asset Management. As a key player in this field, Exton Consulting provides executive boards with the advice and support needed to manage company growth, transformation and innovation. The firm is represented in France, Italy, Germany and Morocco and employs 150 consultants with a high level of expertise and competence. With more than 10 years of experience, Exton Consulting has become a privileged partner in addressing the challenges and opportunities of digital transformation in financial services. In direct contact with the FinTech and entrepreneurial ecosystem, to better support its clients in their innovation projects, Exton Consulting is a founding member of Le Swave, the first French acceleration platform for FinTechs, and a partner of Finance Innovation, an active member of its FinTechs banking and insurance projects labelling committee. For more information: www.extonconsulting.com [email protected] FOREWORD Some observers predicted that the FinTech phenomenon would slow down worldwide at competitive advantages and accelerate their digital transformation. the end of 2016. However, financial start-ups continue to attract investors and 2018 is already proving to be a record year. These are just some of the factors that lead to attractive development opportunities for FinTechs in France. Europe is the region with the strongest growth in 2017 (+121%) and in third place after North America and Asia in terms of invested amounts. The continent has a regulatory In this context, Exton Consulting and the Finance Innovation cluster wanted to framework that favours the emergence of FinTechs (with the European financial passport combine their expertise in order to: and the entry into force of PSD2, which paves the way for open banking). -
Kalifa Review – FIL Response KALIFA REVIEW Finance Innovation Lab’S Response
Kalifa Review – FIL response KALIFA REVIEW Finance Innovation Lab’s response 1 OVERVIEW .................................................................................................................2 2 RESPONSE................................................................................................................. 3 3 ASKS .........................................................................................................................5 4 ANALYSIS OF FINTECH ...............................................................................................7 4.1 FINTECH AND DATA ........................................................................................................ 7 4.2 FINTECH AND BIG TECH ................................................................................................... 8 4.3 RISKS OF FINTECH ......................................................................................................... 9 The Finance Innovation Lab is a Registered Charity (number 1165269) and Company Limited by Guarantee. (number 09380418). 1 Kalifa Review – FIL response 1 Overview The Finance Innovation Lab welcomes the attention and focus on the future of fintech. Last December, we published our report Lifting the Lid on Fintech, which examined the acceleration of technology-driven innovation in finance and explored how fintech is transforming finance on a systemic level, leading to worrying concentrations of power and increased threats to democracy, sustainability, justice, and resilience in finance. It is -
DIGITAL BANKS How Can They Deepen Financial Inclusion?
Antonio Aragon Aragon Antonio Renuncio | CGAP Photo Contest CGAP Photo | DIGITAL BANKS How can they deepen financial inclusion? Ivo Jenik and Peter Zetterli February 2020 Is retail banking changing at its core? The world is rapidly changing. New We focus on three broad technologies and business models are innovation spaces defined by upending long-established markets across different sets of actors. virtually every major sector. Financial services are no exception, as traditional • Digital banks from plain start- retail banks are joined by a growing up competitors to radically new number of digital partners and other business models like banking- competitors. as-a-service. • Fintech start-ups and funding What are the implications for incumbents, + innovation ecosystems that regulators, and investors? And what will enable them. this evolving landscape mean for financial inclusion and the many stakeholders • Platforms like big tech giants working to make universal access a in the United States and China reality? and local goods or services platforms in emerging markets. In mid-2018, CGAP launched an effort to This initial slide deck focuses on understand this change and how it may digital banks. For content on the alter the very nature and structure of other innovation spaces, please banking. This presentation features our stay tuned to www.cgap.org/fintech early findings concerning digital banking as we publish more work across models. this agenda. Photo Photo credit: Deo Surah, CGAP Photo Contest 2 © CGAP 2020 Table of Contents Executive Summary 4 I. Introduction 7 II. Emerging Business Models & Trends 13 How Can Digital Banking Advance Financial III.