Research

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The Banks as Universal Digital Trusted ID Providers

This whitepaper by Finextra and HID Global explores the new trends in digital identity and highlights how financial institutions are well placed to play a central role in these developments as well as some of the more advanced responses in the financial sector from both a regulatory and business case perspective. Being able to prove you are who you say you are is the basic underpinning of many economic activities, and traditionally this proof has come in the form of personal interactions and physical documentations. But over the past 20 years, the concept of digital identity has emerged, with varying definitions, and several long-term trends that have been building over the past decade are combining to transform digital identity and the way consumers and businesses interact and transact in the economy. Digital identification and authentication will be radically different in the coming years than the simple username and password combination that have persisted since the dawn of the digital age. And financial institutions, with their long experience of identity assurance and trusted role within the economy, are well placed to play a central role in these developments. Download this new whitepaper produced by Finextra, in association with HID Global, exploring these trends and highlighting some of the more advanced responses in the financial sector from both a regulatory and business case perspective.

847 downloads

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Payments Transformation: Jostling for Position in the New Digital Landscape

The world is moving ever faster. The willingness of consumers and businesses to tolerate any delay or inconvenience is rapidly approaching zero. Fintechs are entering the market at record pace with a focus on taking profits from any inefficient market. The banking industry is starting to move. From the rapid rise of instant payments to SWIFT gpi, banks are forming a competitive response to these market forces gaining market and mind-share. Download our fourth annual research paper by Finextra in association with Fiserv on the state of the payments market and the competitive challenges and pressures. It focuses on the challenges banks face in building intelligent experiences for their corporate and retail clients to meet their increasing expectation of speed, seamlessness and security. The survey sets out the various aspects of banks transitioning to meet the opportunities and challenges of the ‘faster / instant’ world; the market context (new competitors, new regulations, operation and technologies) with which the banks are contending, the key issues around instant payments and building the business case to support the investment required. This information is supplemented by a look at what’s happening with blockchain and distributed ledger technology. The research was undertaken in September 2018 and is based on a survey of over 100 financial services professionals from around the world.

1522 downloads

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Digital Revolution in Treasury

Corporate treasurers are becoming more strategic within their organisations, with a focus on digital channels and advanced offerings from their partners that help them add greater value to their organisations’ business success. For corporate treasuries there remains a gap between the digital and real-time nature of financial services that retail customers expect, and the operational reality of corporate banking. Fragmentation, manual and slow movement of funds, batch processes and difficulty in scaling operations remain key problems. However, as instant payments infrastructures become more prominent in an increasing number of countries and payment limits increase, there is a greater potential for change. Combined with the regulatory standardisation of open banking APIs, and the possibilities offered by Virtual Account Management (VAM), the potential for real-time treasury is becoming increasingly attainable. Banks should not become complacent in their role as a trusted partner and provider to corporate treasuries. Indeed, treasurers no longer see banks as their sole trusted advisor. As their needs have evolved, treasurers have become more open to working with service providers outside the banking community. This is driven by treasurers’ increasing interest in automated processes and self-service execution. Rising technological capabilities delivered by fintechs, Enterprise Resource Planning (ERP) vendors and Treasury Management Systems (TMS) are unsettling the status quo. Download this new paper by Finextra in association with Tieto as we explore what options are available to corporate treasuries and what banks need to do in order to address the rapidly evolving requirement of treasuries.

736 downloads

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AI - The Road to Transformation

The challenge for global financial institutions is how to navigate the Artificial Intelligence (AI) revolution in a successful manner. It requires a full evaluation of operational models, approach to the customer, ability to combine technological acumen with real business needs, and much more besides. At Finextra’s annual NextGen Banking London conference, speakers and panellists discussed how robotics can be deployed to automate processes and increase operational efficiency, and how advanced analytics can enable a better understanding of the customer allowing banks to improve their offering, remain competitive and also reduce fraud. Ultimately, AI is a tool with which to augment the workforce, and a cultural shift is also required in order to fully leverage the benefits to be gleaned from AI. Download this new paper produced by Finextra to find out more.

132 downloads

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Payment System Assurance – Reducing Risk through Effective Testing

Banks traditionally offer three services: accepting deposits, making loans and moving money. Once an area in which there was little competition and regulatory focus, today payments is a product led business that has changed beyond all recognition. Now banks and the infrastructure providers are at the centre of an environment which moves vast numbers of transactions and monetary value both domestically and internationally and often in real time. Against this backdrop there is increased regulatory legislation and compliance. All payments must be vetted to ensure both their authenticity and funding, and against various watch-lists – anti-money laundering, anti-terrorist financing etc. Further, the banks’ clients now expect the ability to initiate payment transactions from a gamut of devices from the ERP (Enterprise Resource Planning) and TMS (Treasury Management System) systems of large corporates to the mobile devices of millennials. The only certain feature of banks’ payments infra structure today is change, and the amount of change is at historically unprecedented levels. With the huge risks – business, financial, regulatory and reputational - to banks of failures in their payments infra structure, the importance of testing in this area has never been greater. Download this paper produced by Finextra and Iliad solutions examining the quality of the payments-related testing approaches and systems used by banks operating in the UK. It also sets out the obstacles currently preventing them from moving from limited automation and obsolete processes, to a completely new approach based on a strategic investment in technology to rationalise, simplify and fully automate their testing.

472 downloads

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Capturing the AI Opportunity: Transforming Financial Services Technology and Culture

As part of the NextGen Banking London 2018 event, Intel hosted a roundtable that gathered together experts from a wide selection of the global banks to discuss the accelerating data-driven transformation in financial services due to artificial intelligence (AI) and the move towards a secure data and analytics platform it is working alongside partners to create. Under Chatham House Rule, what emerged during the discussion was a disconnect between the technology and business divisions and how some are broaching this. Download this new paper by Finextra and Intel to find out How are banks approaching AI? Who owns AI and what is driving it What are the challenges on the path to AI Implementation How banks can demonstrate the return on investment

793 downloads

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The AI Revolution: Time to Get Ready

Artificial intelligence (AI) and related technologies are fast making inroads into the financial services industry. Operating in an interconnected, digital world in which money moves instantly, and faced with increasingly stringent regulations, financial institutions are turning to AI to help transform their operations. According to Forbes, organisations invest in AI developments to meet one of three objectives: Build systems that think exactly as humans do; Get systems to work without figuring out how human reasoning works; or Use human reasoning as a model but not necessarily the end goal. Download this new paper by Finextra in association with Intel to find out more on these three objectives and how AI will help financial institutions participate fully in the digital revolution.

207 downloads

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Exploiting Big Data, Analytics and Visualisation for Better Decisions and Business Growth

Banks are in many ways the original data-driven businesses, generating huge volumes of transactions on an hourly basis. Coupled with the explosion of data points produced by digital and social media and ever-advancing technologies in other sectors, financial organisations have a great opportunity to streamline processes, reduce costs and utilise this data to achieve their business goals. This new paper by Finextra, in association with Qlik, brings together the views and opinions from a broad range of data experts from the financial industry on what needs to change from a business and technology perspective to enable banks to harness the power of big data, analytics and visualisation and to foster data-driven value. Download the paper to read about: How Natural language processing (NLP) will impact the flow of data and analytics ‘Navigate the noise’ and overcoming key challenges such as leadership Ensuring the technology is right from the ground up Customer regulatory compliance, security and risk strategies How increased data means increased risk

539 downloads

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Interconnection and Data at the Edge: The Next Frontier Of Competitive Advantage In Financial Services

There is a consistent focus on digital transformation within traditional banks. This paper, produced by Finextra in association with Equinix explores how interconnection and computing at the edge can help banks successfully navigate digital transformation and secure competitive advantage; whatever the future landscape looks like. Traditional banking is experiencing disruption on an unprecedented level, driven by regulatory change and increased customer demand. In order to remain relevant, banks need to go beyond compliance with legislation and a “me-too” offering, to a new frontier where they are considering new business models, innovating new revenue streams and working with new partners to offer a personalised experience. Banks lack the agility to capitalise on this opportunity given legacy technology, the ever-present threat of cyber-attack and the regulatory restrictions which are a pre-requisite for market participation. Through an online survey of over 100 expert financial services professionals, and a series of one-to-one interviews with senior bankers, this new paper lays out the key issues and opportunities faced by banks over the next five years. Download the paper now to view the results.

695 downloads

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Digital Transformation: The New Dawn Belongs to Data

Digital transformation has become today's imperative for survival. So how do firms do it well? The charge for digital transformation means challenging the way businesses have been run for decades. To achieve that requires real vision. And a clear idea of what good looks like. The secret is to be clear where a constellation of technologies is best used, determine where technology is simply part of the kit bag and where one type of technology is not part of the answer for that particular phase. So where should firms start? With so many options, a digital transformation imperative, and a market littered with false starts, the best route is not always apparent. Download this new paper by Xceptor and Finextra as we discuss how using technologies to replicate bad processes just locks in more problems and how those in the know understand that data is the new dawn and it’s just around the corner.

637 downloads

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Meeting EU Regulatory Requirements in A Post Data Breach Era

2017 played host to a catalogue of data breaches, and some of the most shocking examples were those that were an updated account of previously reported breaches. This has done nothing to augment already dwindling trust in financial services. In the wake of the second Payment Services Directive (PSD2), the General Data Protection Regulation (GDPR) updates and AntiMoney Laundering (AML) updates with their regulatory requirements for stronger verification and more rigorous data protection, have current verification methods passed their expiry date? The plethora of digital account services available now has given rise to more opportunities for cyber criminals to breach customer account data- this can then be sold on the dark web and used for fraud and money laundering. At the same time, the rise of cryptocurrencies has enabled such nefarious activities by providing anonymity. What is the way forward for digital payment and service providers to know exactly who their customers are as they come under increased regulatory scrutiny? Download this new white paper, produced by Finextra in association with Mitek, as we explore these issues and highlights some of the emerging methods financial institutions can deploy to meet compliance obligations while onboarding their customers in a secure, user friendly manner.

719 downloads

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How to Realise a Digital Strategy in Financial Services

During 2017 Finextra in association with Temenos hosted a series of seminars to unpick and explore the challenges and opportunities for financial services grappling with the transition to a digital world. The three seminars examined the role of cloud computing within a digital strategy, progress by financial institutions in harnessing data and analytics to improve customer experience and options open to them to reinvent their business models for open banking. This new whitepaper produced by Finextra in association with Temenos distils the outcome of the seminars and presents a set of key takeaways for financial institutions looking to realise their digital strategies to remain relevant and successful in the banking landscape of the future. Download the full paper now to find out more.

962 downloads

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AI in Financial Services: Next Steps To Realising The Potential

AI has generated a lot of excitement in the past few years. While it is a disruptive technology, its potential to add value in Financial Services firms is enormous. It already exists in our lives, and we know that it has much further to go. Every day we hear more about driverless cars, chatbots, robots, robo advisors and so much more. Where will AI go, how will it change our world are questions worth pondering. Firms across the globe are becoming aware of the power of these technologies. They have started to explore how AI could improve the customer experience, enter new markets and gain revenue more quickly, reduce operational and business expenses and enhance compliance efforts. Banks always want to know their customers better and improve their relationships. AI will clearly help here. In late 2017 Finextra and Opentext conducted a survey exploring how firms are approaching AI in financial services, what areas they consider the benefits and what they view as barriers to success. Download the full report now to view the findings, we hope you find the results as compelling as we do.

966 downloads