Top fintech stories this week – 9 December 2016
Catch up on Banking Technology’s top five fintech stories of the week – all in one place!
News
Fintech funding round-up: 8 December 2016
Fintech funding stories can be fun if they are brief. Featuring MoneyLion, SETL and Finicity.
U.K. Regulator Proposals Take Aim at Competition Barriers to Payments Infrastructure
The U.K.’s Payments Systems Regulator (PSR) plans a sea change to the U.K. payments system after determining an inability for new payments infrastructure projects to compete as alternatives to the three interbank payment systems, Bacs, Faster Payments Service (FPS) and LINK.
Can Amazon Make the Checkout Lane Obsolete?
Amazon’s vision of the future, which it’s testing in Seattle, is a grocery store that enables customers to complete purchases via scanning mobile phones instead of waiting to pay.
People on the Move: Steve Pruitt, Americhip
Steve Pruitt has taken on the role of director of new business development for the Americhip Gift Card Group, a provider of print, specialty packaging, shopper marketing and gift card programs.
People on the Move: Jo Kenrick, Bacs Board
Jo Kenrick has been named an independent director on the board of Bacs Payment Schemes Ltd., the network behind the clearing and settlement of U.K. automated payment methods, direct debit and Bacs direct credit, as well as the Current Account Switch Service and the Cash Isa Transfer Service.
People on the Move: Elly Hardwick, Philip Milne, Deutsche Bank
Deutsche Bank has made two leadership appointments to its fintech innovation team. Elly Hardwick will become head of innovation for the bank, while Philip Milne has been named chief technology officer (CTO) for innovation.
Company on the Move: GlobalPlatfom, New China Task Force
GlobalPlatform, an industry body which standardizes the management of applications on secure chip technologies, has launched a China Task Force to give Chinese members and all GlobalPlatform members with business interests in China a dedicated platform to identify and agree on requirements from the region and work directly with Chinese industry and standards associations.
People on the Move: Miguel Vias, Ripple
Blockchain-based financial settlement solutions provider Ripple has named Miguel Vias as head of XRP markets.
People on the Move: Crystal Caligiuri, ShopKeep
Cloud-based m-POS solutions provider ShopKeep has appointed Crystal Caligiuri as the company’s new senior vice president of operations and customer care.
Citi Prepaid Talks Samsung Pay Rewards, Tipping Point for Incentives
Most of the talk around Samsung Pay’s new points-based loyalty program has been about whether it can spur mobile wallet adoption. But the in-app delivery of a virtual prepaid rewards card could mark a substantial shift for the incentives business, according to Brad Garfield, global product head for Citi’s corporate and public sector prepaid cards.
IBM launches blockchain ecosystem on Hyperledger Fabric
IBM has unveiled a blockchain ecosystem “to help accelerate the creation of blockchain networks”. The programme “is designed for innovators looking to build real networks – venture capitalists, start-ups, systems integrators, independent software vendors and enterprise developers”.
40 clients worldwide join IBM Watson for Cyber Security beta programme
IBM Watson has launched a testing programme for its cyber security tech, which includes 40 companies from various sectors worldwide. On the financial services side, participants include Sun Life Financial and Sumitomo Mitsui Banking Corporation.
American Express Acquires Mobile Authentication Provider
Fraud prevention is driving payments acquisition activity, with two major moves by the networks in the last two weeks. American Express has acquired InAuth Inc., a provider of mobile device authentication and intelligence solutions, which follows Visa’s announcement of its plans to acquire e-commerce authentication specialist CardinalCommerce, which operates the largest authentication network in the world, according to the company.
Western Union Gains Mobile Momentum with Investment in Billing Specialist
Western Union continues to expand its presence in the mobile vertical with an investment in Walletron Inc., a provider of mobile wallet bill presentment and payments services. The investment follows a deal struck between the companies earlier this year, under which Western Union’s Speedpay electronic bill payment service began offering biller clients the option to incorporate Walletron’s moBills platform.
Can PayPal, Google Holiday Promotions Spur Long-Term Adoption?
PayPal and Google’s Android Pay are making the holidays more festive with new promotions, but will they lead to more consumer usage? PayPal says it’s making its P2P payment service “more personal and heartfelt,” while Android Pay is offering U.K. users a free gift when they use the mobile wallet for purchases.
Russia Says Cybercriminals Stole $31 Million from Central Bank
Cybercriminals have stolen about $31 million from Russian Central Bank accounts, according to a Reuters report. The hackers broke into bank accounts after faking a client’s credentials, a bank spokesman said at a briefing, disclosing few other details. In a separate instance, Russia had recently warned about a plot by foreign countries to wage cyberattacks on its financial institutions.
The Future Is Now: Helping Merchants Engage Consumers
Whether it’s digital coupons, next-generation mobile apps or using augmented reality technology to enhance shopping, have no doubt: That future is here and it’s all about engagement. Paybefore sat down with Amy Parsons, vice president and head of global commerce, Discover Global Network, to get her take on what’s ahead.
Global Fidelity Bank implements AMLtrac from iFinancial
UK-based core banking and anti-money laundering (AML) software vendor International Financial Systems (iFinancial) is implementing its AMLtrac solution at Global Fidelity Bank.
Leveris looks to raise €15 million for core banking software business
A new core banking software vendor, Leveris, looks to raise €15 million from international venture capital firms, and is working with stockbroker Davy on the transaction.
Blackhawk Network Connects Merchants to Apple Pay
Blackhawk Network said Dec. 5 that it will “integrate gift cards, e-gifts, loyalty and rewards programs into Apple Pay,” a move that could make the mobile wallet more attractive to consumers.
Visa Buys World’s Largest Authentication Network
Visa Inc. has acquired e-commerce authentication specialist CardinalCommerce in a move the payment network called a bid to amp up security for online and mobile transactions and reduce fraud. Visa already provides Cardinal’s services to merchants and acquirers through its CyberSource enablement platform.
Payment Networks Give Fuel Sellers Reprieve amid Shortage of EMV-Compliant Fuel Pumps
Three of the four major U.S. networks have pushed back the EMV liability shift for fuel pumps three years. The cost of EMV migration at the pump—which is more extensive and complex than POS changes and can require pump replacement—now can be spread out over a longer implementation period, Randy Vanderhoof, director of the U.S. Payments Forum, tells Paybefore.
OCC Encourages Fintech Companies to Apply for Federal Banking Charters
Fintech companies seeking charters would have to fulfill multiple requirements under the proposal, including performing core banking services.
Santander InnoVentures invests in Tradeshift
Business commerce and supply chain finance platform Tradeshift has got an investment from Santander InnoVentures.
Banking Technology Awards 2016 – winners unveiled
Our dazzling event gathered together over 260 banking and financial technology specialists from all over the world – recognising the excellence and innovation in the use of IT in financial services, and of course the people that make it happen!
Amazon Web Services to certify fintech firms
Amazon Web Services (AWS) has launched Financial Services Competency to certify its partners that specialise in the financial services space.
Digital messaging platform Viber gets banking chatbot
Comtrade Digital Services has built an automated banking platform that enables users of online/mobile messaging platform Viber to perform a range of banking operations entirely through a chatbot.
MAB awards core banking managed services deal to JMR Infotech
Myanmar-based Myanma Apex Bank (MAB) has selected JMR Infotech as its core banking managed services provider. For its core banking system MAB uses Oracle FSS’s Flexcube.
DBS Bank to replace legacy procurement tech with Coupa’s cloud platform
DBS Bank will automate its business spend management with Coupa Software’s cloud-based platform.
Bancorp Bets Big on Fintech with Cube8 Innovation Lab
The Bancorp is doubling down on its commitment to fintech, unveiling plans for a new dedicated fintech innovation and development studio. Dubbed Cube8, the division will serve as a space where Bancorp will “explore unconventional–even radical–ideas in financial technologies” with the goal of creating changes or new opportunities to bolster the company’s business strategies, operational efficiency and incremental revenue, Bancorp said.
Mastercard Battles Fraud, False Declines with AI-Based Tool
Mastercard is employing artificial intelligence to improve the accuracy of real-time transaction approvals by minimizing false declines and fraud. Decision Intelligence, Mastercard’s decision and fraud detection service, is available across all markets for all Mastercard brands and products, according to the company’s Dec. 1 announcement.
FIS to Offer Zelle Network P2P Service
Financial services providers that work with FIS will be able to ramp up their real-time payments capabilities quickly now that the company is integrating with Early Warning’s Zelle Network P2P service. Using FIS PayNet and the financial technology provider’s open payment framework, the P2P service will be offered as part of FIS’s other real-time payment services, such as digital e-gifting, bill payment and external transfers.
In Wake of Cash Restrictions, Prepaid Cards Target Migrant Workers, Tourists in India
With India’s recent banning of high-denomination paper currency pushing the country’s traditionally cash-dependent economy further toward electronic payments, two new prepaid products have launched there to serve the needs of specific market segments.
BNY Mellon sets up global innovation group
BNY Mellon’s treasury services business has created a global innovation group and appointed Christopher Mager to lead it.
New mobile bank Pepper goes interactive with Playbuzz
Bank Leumi’s new mobile banking subsidiary, Pepper, is working with digital authoring platform Playbuzz “to enhance user experience and engagement through personalised content”. Content created with Playbuzz’s suite of interactive formats, such as polls, quizzes and flip cards, will be embedded into Pepper’s banking app (to be launched in Q1 2017).
Cognizant to acquire digital agency Mirabeau
Amsterdam-based digital marketing and customer experience agency Mirabeau and its 260 staff will join Cognizant’s digital business once the acquisition is completed.
Cachet Revamps Prepaid Mobile Platform for Faster App Design, Deployment
Cachet Financial Solutions has upgraded its Pay Award-winning Select Mobile Money prepaid mobile platform with enhancements that enable program managers to design and launch branded apps more quickly, as well as provide cardholders with a new international money transfer service.
PFS Issues Prepaid Mastercard for Refugees in Greece
To improve the plight of refugees in Greece, Prepaid Financial Services (PFS) has partnered with Samaritan’s Purse, a Christian international relief organization, to launch a financial aid program in which funds are being disbursed via a Mastercard-branded prepaid card. U.K.-based payments technology provider PFS is issuing the cards.
CFPB Warns Banks about Deceptive Sales Practices
Incentives that banks offer employees to increase sales can pose “significant” risks to consumers, the CFPB warned this week in a new bulletin following record fines assessed to Wells Fargo for opening millions of unauthorized consumer accounts.
