Finextra Research: Latest fintech news, analysis, interviews, features and opinion by industry experts

Report

Onboarding next steps for new and established Digital Banks

Customers want the onboarding and account opening process to be as easy as possible. A certain amount of friction is to be expected when it comes to identity and security checks, reassuring them that their prospective financial service provider takes security and their data seriously. Signing up for a new financial services product shouldn’t be as simple as providing a username and email address. But nor should it always require reams of paperwork, branch visits and forms signed in triplicate. In the past five years, banks of all shapes and sizes have invested significantly in streamlining their processes so that the regulatory checks such as Know Your Customer (KYC) and Anti Money Laundering (AML) can be met while minimising, where possible, the number of postal and in-branch interactions required for establishing identity and product suitability. Depending on the market segment and product, this process can be done 100% online and ideally via a mobile device – a channel that now dominates for even traditional banks with established, older customer bases. Digital onboarding is just the start, however. Banks, both new and established, are looking to improve the integration of identity at onboarding with ongoing authentication credentials, and adopt a risk-based approach to security throughout the customer lifecycle that can adjust the balance between protection and convenience for customers. Download the full white paper below to find out more.

14 July 2020 838 downloads

Report

Shifting to the New Normal in Card and Digital Payments

It is an interesting time for the cards industry and for issuers there is a similar narrative to that of legacy banks and digital transformation. There have been several drivers of innovation in recent years, very much accelerated by the current pandemic and the various demands and transitions that have been wrought on the entire industry in different ways, as well as on the consumer and client base. What are the key factors for survival as competition increases and regulatory compliance bears down on security measures around customer data and fraud as well as on a looser and more empowered user experience? Utilising new data that can be more easily captured and carried with transactions can inform and shape new services, and better overall understanding of customer behaviour, leading to increased personalisation and an array of added features. As integration into retail commerce platforms and an increased demand for frictionless and invisible payments takes hold, is the physical card becoming obsolete or can issuers create new propositions to retain their position? Competition in the cards industry has evolved from terms such as interest rates and fees, to balance transfer products, to loyalty and rewards and more recently has been diversified by new fintech providers. This research paper by Finextra, produced in association with FIS, is based on several interviews with cards industry experts, to formulate a view on how issuers can compete in the digital world as payments continue to proliferate and fintechs disrupt the status quo. Download the full report below to find out more.

07 July 2020 891 downloads

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A 3 Step Guide to Driving Customer-Centricity with Big Data

As a result of increased competition and rapidly changing consumer expectations, banks are under increased pressure to develop the way they target and appeal to customers and in turn, maintain a profitable personal relationship. In addition to this, the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the US have set a foundation for data consent management and ensuring that customers’ personal information is always protected and secured. Now they are breaking down their data silos, banks are struggling to harness the information that is key to unlocking customer relationships in this ever-changing market. While they are navigating their way through such a volatile environment, traditional financial services companies are often reluctant to change and may find it difficult to implement new technology from which they can derive value. This is partly because they have had bad experiences with tech projects in the past that did not deliver or bring changes as expected. However, smart technology and out-of-the-box solutions in the form of powerful customer data platforms (CDPs) are readily available and deliver a competitive edge and value to financial institutions. Find out more by downloading your copy of the research paper below.

19 May 2020 406 downloads

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The Information Advantage: Driving Opportunities and Mitigating Risk in a Hyper-Connected World

What's next for business in this world of digital services and data? Collaboration, interoperability and a trusted network in which to operate came to the fore as the key factors to support business growth and financial services transformation during a recent roundtable, held under Chatham House Rule. The roundtable was hosted by Finextra, in association with OpenText, and brought together payments and industry stakeholders to discuss the pertinent issues and drivers around digital and operational transformation. The themes have percolated and resonated in follow-up discussions since. Delegates discussed the pressing challenges as well as opportunities, and how to solve them in order to improve the landscape for commerce. Download the full report to find out more.

09 March 2020 417 downloads

Report

The Future of Cybersecurity: 2020 Predictions

2020 promises to be another politically-charged year around the world. Even with the possibility of any referenda in the UK now largely removed, the US election in November may bring to the fore cyber threats and the evolving methods of nefarious actors to interfere with business and government. Financial services companies will therefore be monitoring the cybersecurity space and evolving threats encountered and the methods used to mitigate them. In conjunction with experts of the financial services industry, Finextra explores trends to watch and predictions for cybersecurity in 2020 and beyond. Download your copy of the report now!

28 January 2020 721 downloads

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4 Regulatory Changes Impacting Data, Identity, and the Digital Trail

This Finextra Impact Study, produced in association with DocuSign, examines the foremost regulatory changes affecting financial institutions and the businesses which transact with them, the key issues arising out of these changes and the avenues for opportunities in this dynamic context. Digital transformation has swept through the financial services industry, spurring innovation and prompting incumbents and disruptors alike to reassess how they can remain competitive while meeting complex regulatory requirements. This 4-point study outlines the 4 key regulations affecting financial services and why digital solutions hold the key to smooth compliance. Compliance with the London Inter-bank Offered Rate (LIBOR), Regulation E updates, the Federal Deposit Insurance Corporation’s (FDIC) Final Rule implementation and the refining of Capture Consent laws each demand that firms are equipped to manage these regulatory changes. Find out more by downloading your copy below.

22 January 2020 470 downloads

Report

Embracing Open Banking with Secure and Interconnected APIs

In financial services today, data is an asset. But only if it can be accessed, transformed and integrated securely into internal and external ecosystems. In the world of open banking the definitions of competitor, partner and customer are blurring. It is particularly important for financial institutions to have a cohesive strategy to manage the integrations that tie together their systems from back office to customer-facing channels. This needs to happen across lines of business and international operations, and be able to expose functionality and data to build innovative new services with third parties. Application Programming Interfaces (APIs) have become the most accepted method for building systematic connecting points between an organisation and the outside world. They are often used internally as well, alongside more traditional internal integration patterns such as file transfers and middleware. The widespread use of APIs has led some to talk of the “API economy” as a way to describe the new business models emerging. Large organisations are transforming themselves to compete and partner with new service entrants such as aggregators while start-ups create new businesses by combining functionality provided by APIs from multiple sources. There are many drivers for organisations to develop an effective API strategy. Within financial institutions from the board level down there is pressure to continually modernise and embrace digital transformation to optimise costs, become more efficient at developing new products and services and boost revenue from customers that expect better, faster, anywhere/anytime service.

20 December 2019 646 downloads

Report

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.

06 November 2018 847 downloads

Report

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.

20 July 2018 695 downloads

Report

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.

04 June 2018 719 downloads