Viewpoint: One-Time Passwords Aren’t Going Away
A recent NIST announcement would seem to toss SMS one-time passwords to the junk pile. But the anti-fraud technology still has value for low risk transactions.
Analysis
Viewpoint: Brexit Can’t Save U.K. from Data Protection Regs
A tough new European data protection rule, scheduled to come into force in 2018, will command businesses’ attention no matter the relationship the U.K. has with the EU.
Viewpoint: Who Dominates P2P?
Beware of predictions that upstarts will push aside incumbents when it comes to consumer-to-consumer remittances. The numbers tell a different story.
Prepaid International Forum Rips into Proposed EC Prepaid Rules
The European Commission’s proposed changes to anti-money laundering rules would place an “immense burden on the regulated e-money sector,” the Prepaid International Forum argues in a new position paper.
Office Depot Sues Delaware over Unclaimed Gift Card Law
Office Depot and an associated gift card program manager are suing Delaware officials in federal court, challenging the state’s unclaimed property law. The Florida-based retail chain and Virginia-based North American Card and Coupon Services LLC, Office Depot’s gift card operator, said Delaware’s escheat law violates the U.S. Constitution’s Fourth Amendment, which guards against unreasonable search and seizures.
The hare and the tortoise: racing ahead in customer experience
Sid Parashar, SVP of client relations and strategic account management, Firstsource Solutions, asks if traditional banks are now ready to take on the new kids on the block when it comes to customer communications. As the banking industry emerges from one of the most transformative periods in its history, it has been a trying time […]
Midnight Deal to Buy Bitcoin Goes Bad
A Florida man should have gotten his bitcoin through a reputable virtual currency exchange instead of some guys meeting in a Boston Market restaurant parking lot in the middle of the night. Likely surprising no one, a deal to exchange $28,000 for the equivalent in bitcoin went bad, leading to one arrest.
Interview: Rupert Scofield, founder of Finca International
Rupert Scofield, president and CEO of microfinance organisation Finca International, discusses how it brings banking to the developing world and why people should follow America’s lead in the art of philanthropy. “This is your world. My generation had its shot. We thought our problems were daunting but it’s nothing like the stuff you’re dealing with. […]
Can robo-advisors stand the test of time?
Robo-advisors are becoming increasingly commonplace in the UK’s financial sector. Over the last 18 months, high street banks such as Barclays, Lloyds, Santander and RBS have all launched robo-advice platforms, and it’s not only these well-known names that are competing to own the online investment space. Smaller challenger brands like Nutmeg and Wealthfront have also […]
Shell Pays $762K To California For Misleading Payments Advertising
Shell Oil is coughing up civil penalties, investigative costs and restitution after being accused of tricking consumers with payments ads for various Shell fuel rewards and gift card programs.
Australian Banks Seek Power to Negotiate with Apple over Payment Apps
They want permission from national anti-trust regulators to negotiate as a bloc with Apple over putting their own mobile payment technologies on iPhones.
Merchants File Cert with Supreme Court Challenging State Surcharge Laws
A group Texas merchants wants to take its battle against a Texas law prohibiting them from imposing a surcharge on customers paying with a credit card to the Supreme Court, arguing that the statute violates the merchants’ free speech rights.
CECL: introducing another project for banking IT departments
There was some big news for bank’s risk and finance technology departments last month. The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Notably, this standard introduces a new impairment model, commonly known as the CECL (current […]
Q&A with Ron Hynes, UniRush LLC
Ron Hynes has been on the job as the new CEO of UniRush LLC less than a month, but he’s already looking ahead. And, he’s not going to let the CFPB’s looming final prepaid rulemaking slow the company down when it comes to innovation and product development. Hynes spoke with Paybefore about what he brings to his new role and why UniRush’s cardholder settlement made him want the CEO job even more.
Optimal execution and the human-machine interface
In recent years we have seen a strong trend for institutional trading desks to leverage their data to improve trade execution results and become more recognised as active participants in portfolio performance. Two important applications of predictive analytics have arisen, both aiming to improve the manner in which trading algorithms are used and controlled. It […]
Tech and talent: priority number one for official institutions
Since the global financial crisis, there has been an endemic environment of low interest rates and currency fluctuations. The effects of quantitative easing have been broadly felt by institutions across the globe; and have created major challenges for central banks, sovereign wealth funds (SWFs) and government pension funds. In addition to this, equity market declines […]
Viewpoint: Liberating Consumers through Payments
For once, the sound bites being used to describe upcoming changes in the global banking industry may actually be too conservative. The latest Payments Services Directive likely will revolutionize how consumers interact with their banks and the protection they can expect when paying online or on their mobile devices—and the effects won’t be limited to Europe.
Viewpoint: Can Emojis Secure Mobile Payments?
In addition to brightening text messages and tweets, the popular icons beloved by everyone from tweens to Baby Boomers may soon serve a much more substantial purpose—mobile and payments authentication.
Viewpoint: Harnessing the Full Power of Tokenization
To harness the true power of tokenization—a technology that underlies mobile payments—banks need to change their thinking. Doing so could help boost the appeal of mobile wallets.
Viewpoint: Debunking E-Commerce Payment Myths
Retailers can cater more closely to the ever-changing needs and preferences of online shoppers if they resist falling prey to these four common misconceptions about how consumers pay.
U.S. Senators Go to Bat for Credit Unions and Community Banks
In this contentious presidential election cycle, it’s hard to imagine anything getting 70 percent of the Senate to back it. But 70 U.S. Senators want the CFPB to lay off credit unions and community banks when it comes to certain, unspecified rules.
U.K. Court to Hear Brexit Case in October
A U.K. hearing scheduled for October will consider if Brexit can happen without parliamentary approval. The U.K.’s June 23 vote to leave the union has led to confusion and much speculation in the payments world, as the industry wonders about such issues as licenses and passporting, along with other financial services regulations.
Cloud tech: how to support cross-border M&A
Merging tech, avoiding “turf wars”, embracing change, careful planning and ensuring alignment between the companies – there is plenty to think about in any merger and acquisition (M&A) deal to ensure its success. Some relief, however, might come in the form of a cloud. When and how should this technology be applied? Banking Technology contributor, Graham Jarvis, […]
Why staying compliant and generating returns are not mutually exclusive for funds
As regulatory pressures mount, Jon Hallam of GoldenSource explains why removing the burden of data management from the shoulders of fund managers can help deliver absolute returns for investors. From investors wanting more bang for their buck to increasing regulatory reporting requirements, it’s fair to say that asset managers have had a fair bit to […]
Santander Enforcement Could Preview CFPB’s Overdraft Intentions
The CFPB’s recent enforcement action against Santander Bank over the bank’s overdraft practices underscores federal regulators’ focus on holding regulated institutions responsible for the actions of third-party vendors, and could provide a preview of the CFPB’s upcoming rulemaking on overdraft.
Fintech innovation: staying on fringes or time to become core?
In the face of an ever rising digital agenda in Europe, banks are jumping on the fintech bandwagon, hoping to jumpstart innovation. Technology stands today as a catalyst for change in established banking institutions, write Astrid Froidure, digital transformation lead at Open Reply, and Fausto Jori, owner of E-finance Reply. The spark comes in a […]
Congressional Report Accuses FDIC of Covering up, Misrepresenting Data Breaches
A critical congressional report was released this week claiming the FDIC has been hacked several times over several years and regulators have been covering up or misrepresenting breaches. In an ongoing investigation by the U.S. House Science, Space and Technology Committee, the report implicates FDIC employees, as well as the Chinese government, as responsible for some of the breaches.
FDIC Guidance on Brokered Deposits Does Little to Ease Prepaid Industry Concerns
The latest FDIC guidance on brokered deposits, released on June 30, has done little to alleviate industry concerns about the treatment of prepaid card loads as brokered deposits.
Virtual cards 2.0 set to boost commercial card uptake
Why are the next generation of virtual cards the key to commercial card adoption? Alex Mifsud, CEO of Ixaris, explores the issue. Commercial cards are relatively commonplace in the business world, with companies using these cards to buy a raft of business related items, including client lunches, airline tickets & office supplies. Commercial cards come in […]
People on the Move: Beverly Cole, OCC
The Office of the Comptroller of the Currency has named Beverly Cole as deputy comptroller for compliance supervision. In the role, Cole will be responsible for developing and instituting compliance operational protocols, examination strategies and schedules.
People on the Move: Robert Cook, Financial Industry Regulatory Authority
The Financial Industry Regulatory Authority board of governors has appointed Robert Cook as president and CEO, effective the second half of 2016.
U.K. Financial Regulator Offers Guidance on Cloud Services
Hoping to encourage fintech innovation, the U.K. Financial Conduct Authority has issued a 17-page document that offers guidelines for how financial services firm can use outsourced Web-hosted services without running afoul of regulators.
Privacy Shield Deal Wins European Approval
A transatlantic data-transfer deal has won approval from European Union officials, giving official life to what’s known at the Privacy Shield pact.
Delivering true personalisation in the age of big data
Big data is a promise. In theory, banks can now know more about every single one of their customers than ever before. There is a real opportunity for them to cement their customer relationships; to create targeted offers and personalised experiences that attract new, and retain existing, customers. UK’s retail banks have increasingly been using […]
Viewpoint: Faster Payments Are Here
The key to unlocking the potential of real-time money movement is the delivery of an intuitive and seamless experience across accounts. As demand grows among early adopters—underserved consumers, millennials and those in the “gig” economy—a larger, more mainstream consumer audience will take note and engage.
Viewpoint: The Missing Link for Mobile Payments
Sure, mobile payments are taking much of the developing world by storm, giving consumers safer and more efficient ways to handle money. But merchant acceptance lags. Here’s why, along with ideas for improvement.
Viewpoint: What Does Brexit Mean for Payments?
Brexit likely will cause issues for major processors and cross-border acquirers for whom London has been a key European and cross-border processing hub. That’s in addition to a restricted market and reduced talent pool.
Viewpoint: Brexit: The Result of Zero Political Accountability
If politicians were held to the same truthfulness and disclosure standards as businesspeople, the U.K. might have avoided its regrettable decision to leave the EU.
EC AML Proposal Would Ban Anonymous Use of Prepaid Cards Online, Lower CDD Thresholds for In-Store Use
Following up on its promise to tighten rules for prepaid cards and virtual currencies in an effort to thwart terrorism financing and money laundering, the European Commission has released a proposal this week to lower the threshold that triggers cardholder identification requirements for prepaid cards and ban the use of anonymous prepaid cards online.
CFPB: Prepaid Complaints Spike in May
Although the overall number of prepaid card-related complaints continues to represent less than 1 percent of total complaints the CFPB receives, prepaid complaints were up 28 percent in May to 226 from 177 the previous month, according to the federal consumer protection agency’s latest monthly complaint report.
