Security: survival of the fittest
The threat of cybercrime shows no sign of diminishing any time soon, but to what extent can market infrastructures and financial institutions protect themselves against hacking attacks?
Analysis
When the ground is moving, banks need to shift to a smarter platform
The tectonic plates of the banking sector are shifting faster than ever. High street banks are under stress from the massive competitive threats generated by their leaner, technology-driven fintech rivals and challenger banks. These fintech companies are finding success simply by being more efficient or by taking advantage of emerging and highly effective technologies such […]
Viewpoint: Europe’s Startling Response to Interchange Regulation
Since the EU imposed interchange decreases in December, issuers have reduced rewards and increased fees. What might the future hold? Building ways to monetize the vast amounts of data at issuers’ disposal.
Viewpoint: What Tipping Means For EMV
As the U.S. payments industry marks the first year of the EMV rollout, questions abound about the spread and use of the technology. Among the concerns is how restaurants will handle tipping.
Viewpoint: Why Fintechs Want More Regulation
As regulators increase their focus on financial technology firms, some of those companies are eager to welcome more rules, which could lead to less expensive and complicated businesses. Much depends on one fintech’s application before U.S. regulators for a national charter.
Does the bank branch still matter?
The number of branches operated by major banking groups in the UK has halved over the last 20 years. In fact, Britain’s banks closed more than 600 branches across the UK between April 2015 and April 2016. This is hardly surprising as more and more people move online, often mobile-first, to complete most of their […]
Technology is galloping ahead. Time for IT to play catch up.
The technology era has come with its new aesthetic, economic models and philosophy about the meaning of value. It is not going away. And the people who thought economics was theirs to define and aesthetic and values were “hobbies” have a lot of catching up to do. That catching up is your hottest technology trend of 2017.
Mastercard Litigation Could Provide Example for Future U.K. Class Actions
One of the U.K.’s first-ever class action lawsuits is targeting Mastercard, providing a potential preview of future class actions in the country. The case stems from a 2007 finding by the European Union (EU) Commission that the network’s interchange fees were too high, in breach of EU rules.
Computer Scientist Cracks Security of Phone Model Used in San Bernardino Shooting
A computer scientist appears to have broken Apple’s iPhone security by simply opening the phone and replacing the main memory chip with a cloned version. As long as the researcher kept switching the chips, it allowed an unlimited number of password attempts. The researcher said that the technique, which is known and referred to as Nand mirroring, cracked a 4-digit code in 40 hours and a 6-digit code in “hundreds of hours.”
New Cybersecurity Rules on the Way in New York
The New York State Department of Financial Services (NYDFS) has proposed new regulations designed to protect against the rising threat of cybercrime targeting financial systems and consumer data. New York Governor Andrew Cuomo unveiled the plan, which would require banks, insurance companies and other financial services providers regulated by the NYDFS to establish a cybersecurity plan that meets standards set by the agency.
Manhattan Judge Latest to Rule that Bitcoin Is Money
In a Sept. 19 ruling in a case over a cyberattacks against JPMorgan Chase and others, a federal judge became the latest to declare that bitcoin qualifies as legal tender. Manhattan District Court Judge Alison Nathan rejected an attempt by Anthony Murgio to dismiss charges that the bitcoin exchange he operated was an unlicensed money transmitting business.
Regulators Put Marketplace Lenders on Notice
Federal regulators are planning to tighten the screws on marketplace lenders over concerns about consumer protections and reckless lending. At a marketplace lending policy summit, U.S. Comptroller of the Currency Thomas Curry told lenders to expect a new regulatory framework this fall that would support “responsible innovation.”
Artificial intelligence set to transform regulatory compliance
Most people have heard of the headline-making achievements in artificial intelligence (AI); systems winning quiz shows and beating world champions in chess. These are the poster children of the discipline but there is a quieter revolution taking in shape in other areas, including regulatory compliance in financial services. Writing for Banking Technology, Mike MacDonagh, London-based […]
PSD2: 5,000 banks, 15 months and lots of work to do
In a mere 15 months, approximately 5,000 financial institutions across Europe will be required to provide open access to customer, transaction and payment information via APIs. “This is a massive amount of work,” said James Whittle, director of industry policy for Payments UK, the representative body for the country’s payments industry, speaking at the EBAday […]
Opening up may be good for you: making PSD II access to accounts work in practice
A new open ecosystem – where banks can enable third parties to develop mobile banking apps and cash management solutions for them – has many advantages over the previous closed world, where everybody tried to do everything themselves. The key to successful “opening up” is to provide a standard interface, such as a smart phone to a bank account, that is accessible to third parties whilst retaining the necessary control.
Harmonising high-value payments
While it sounds like something for which you’d need to visit a doctor, Swift’s HVPS+ will likely be a talking point during the payments industry panels at this month’s Sibos. Announced in mid-August, the high-value payments system task force is an important component of Swift’s ISO 20022 harmonisation initiative. A number of central banks, market infrastructures and banks from around the world are members of the task force.
Taking a nap isn’t a crime, but falling asleep at the switch could cause a disaster
“Give me a solid foundation to stand on, and I will move the Earth.” I am still looking for cement trucks that are pouring foundations – virtual or otherwise – for the new normal of banking, but I can’t find them. Bankers are really confused as to how to succeed in their own business. But like Johnny Lee, I might have been lookin’ in all the wrong places.
Mastercard Hit with U.K. Interchange Damage Claim
Mastercard faces a £14 billion claim ($18.6 billion) in the U.K. over interchange fees in a case filed with the country’s Competition Appeal Tribunal. The claim comes two years after the European Union labeled the interchange charged by the payment card network as unfair. European interchange caps went into effect in December of 2015.
FFEIC Updates its Information Security Guides
The Federal Financial Institutions Examination Council has revised the “Information Security” booklet of the agency’s FFIEC Information Technology Examination Handbook.
Visa, Mastercard Deny Litany of Allegations in Home Depot Complaint
Home Depot’s complaint asserts that Visa and Mastercard “unlawfully” fixed interchange fees at high levels.
Dodd-Frank Overhaul Plan Goes before Financial Services Committee
The House Financial Services Committee will meet Sept. 13 to mark up a bill that would overturn major provisions of the Dodd-Frank Act. Initially proposed in June by Financial Services Committee Chairman Jeb Hensarling (R-Texas), the Financial CHOICE Act would strip significant authority away from the CFPB, renaming it the Consumer Financial Opportunity Commission and tasking the agency with the dual mission of protecting consumers and ensuring competitive markets.
The global economy, brought to you by APIs
The Brexit unrest aside, Europe is taking initiatives to make a sounder, more user-friendly economic landscape. By using technology solutions and digital innovation, the European Union (EU) is encouraging greater transparency, usability and higher standards of security for all manner of web-based banking and financial transactions. Irrespective of any governmental re-organisation, and the trickled-down impact […]
Fintechs and banks, collaborate to succeed!
Banks and fintech companies need to collaborate to succeed, argue Saxo Bank’s global COO, Søren Kyhl, and Stig Tørnes, head of business management. And that requires a change of mindset on both sides, the sooner the better. Fintech has become the buzzword for a diverse group of companies whose ambition is to bring efficiency to financial […]
CFPB Levees Record $100 Million Fine on Wells Fargo
The CFPB on Sept. 8 announced a $100 million fine against Wells Fargo for what the agency called “widespread unlawful sales practices.” The agency said the fine is the largest such penalty it has ever issued.
FTR 2015 – EU regulation with global impact
What is FTR 2015 and how does it affect banks operating in the cross-border payments space? Marc Recker, Head of Market Management, Institutional Cash Management at Deutsche Bank, explores. The challenges and complexities of complying with anti-money laundering (AML) and counter terrorist financing (CFT) regulations are certainly not new in the financial industry. Over the past […]
N.Y. DOL Issues Strongly Opposed Final Rule on Payroll Cards
A New York Department of Labor (DOL) rule that has been bitterly opposed by a major prepaid card association is being implemented anyway. The N.Y. DOL has issued its final rule regulating methods and payment of wages, including the use of payroll cards, in the state and includes no substantive changes from its second revised proposal in June.
FinCEN Gives Iran a Bit of Financial Breathing Room
Iran has won a slight reprieve in FinCEN’s latest advisory for anti-money laundering and countering terrorism measures.
Swift admits attacks are “here to stay” – so what can banks do?
There’s a cultural misconception that security equals lockdown in the financial sector; disclosure runs counter to that perception. Banks are less inclined to share intimate details of attacks because they don’t want to damage market confidence and that makes cyber security a major challenge for the sector. Swift has recently sent a letter out to customers […]
Rash of Email Fraud Schemes Prompt FinCEN to Issue Advisory
A spate of email fraud schemes involving stolen consumer information and financial institutions being duped into conducting wire transfers has prompted the Financial Crimes Enforcement Network (FinCEN) to issue an advisory Sept. 6 in an effort to thwart the illegal activity.
Officers Use Prepaid Card Reader to Seize $10 Million
A handheld card reader released last year has helped U.S. law enforcement agencies seize or recover about $10 million in fraudulent prepaid funds, according to the Dept. of Homeland Security.
How emerging banks are changing the banking experience
Consumers and businesses alike will often consider a company’s reputation before entering an agreement with them. After all, why would anyone choose an organisation which has history of letting its customers down, over another with a spotless track record? It’s unsurprising then that once the reputation of traditional banks in the UK was tarnished by […]
Shadow data – robbing cloud’s silver lining
Welcome to the dark, scary world of “shadow data”, which can easily turn into a nightmare for enterprises from data governance, compliance, reputation and financial losses points of view… Are you sitting comfortably? Yamini Kona, principal consultant, financial services at Infosys, is going to tell a chilling tale. Imagine a scenario where an employee shares […]
Report: Mobile Payments Surge, Banks Could Play Larger Role as Wallet Providers
Consumer adoption of mobile payments is on the upswing, according to a new report by First Annapolis Consulting, which found that 74 percent of respondents had made at least one mobile-based payment in the preceding 12 months—up significantly from just 40 percent a year earlier.
Banking on collaboration
The disruptive forces of technology and legislation are forcing banks to become open and collaborative, things which they historically found challenging. A friend who owns a small business recently went through what I call a “connected and choreographed” experience to get a loan. iWoka, a digital lending company, simply asked him to log on to […]
Viewpoint: Bitcoin After Brexit
A spike in bitcoin value after the U.K. voted to leave the European Union points to the digital currency being viewed as a safe haven for investors. But a recent bankruptcy case clouds the situation.
Viewpoint: How to Deal with Stricter Money Transmitter Laws
New Mexico becomes the latest state to enact a law that requires licenses for money transmitters. That means more bureaucracy. Here are some tips for meeting those requirements.
Viewpoint: Think Small to Battle Online Fraud
Too often, online merchants and their payment providers focus more on international orders than domestic transactions in the battle against fraud. But drilling down into ZIP codes and neighborhoods might be a wiser strategy.
Defining fintech as an opportunity, not as a threat
“Silicon Valley is coming,” warned Jamie Dimon, JPMorgan Chase’s boss, in a recent letter to shareholders. It’s a sentiment echoed across much of the banking world at the moment. The idea that fintech is a threat to the financial services sector is bubbling – a 2015 PwC survey found 83% of financial services professionals were […]
Virtual bank accounts: forget what you thought you knew
Virtual bank accounts (VBAs) are a hot topic among the treasury community today. While you may have heard of VBAs before, their usage is rapidly evolving – and their benefits for treasurers continue to grow. Dick Oskam, global head of sales for transaction services at ING Bank, explains what VBAs are all about. In an increasingly […]
CFPB: Prepaid Complaints Continue Decline in July
Prepaid card-related complaints to the CFPB ticked down in July, the bureau announced in its latest monthly consumer complaint report. The month saw 211 complaints about prepaid products, down 5 percent from 223 prepaid complaints in June and slightly below the monthly average of 215 since the CFPB began tracking prepaid complaints in July 2014.
