For banks \u2014 and especially for credit unions \u2014 the battle with Big Tech for the hearts, minds and wallet share of consumers may seem a more than challenging proposition.
\nAfter all, Big Tech\u2019s role across all facets of everyday life is pervasive, touching on everything from commerce to search to social media to the actual devices in one\u2019s hand (think Android and Apple) where banking services and products can be delivered.
\nIn the report \u201cHow Top-Performing Credit Unions Innovate to Stay Competitive,\u201d a collaboration between PYMNTS Intelligence and Velera, we found that even among top-performing credit unions (CUs), who have relatively high scores on membership satisfaction, a majority (at 56%) view Big Tech firms as key competitors. Overall, 28% of CUs say they compete with Big Tech companies.
\nThere are, of course, signs that the competitive landscape will only get more competitive. As has been seen through the past several months, and as noted here, last year the Consumer Financial Protection Bureau (CFPB) sought to extend the same supervision to Big Tech firms that already is in place for banks and credit unions. The supervision would apply to companies that see volumes of more than 5 million transactions annually, which of course covers everyone from Apple to Amazon to Meta\u2019s financial ambitions. All told, the CFPB\u2019s rule-making would add 17 new entities to its purview, companies that facilitated about 12.8 billion transactions in 2021, with an estimated value of about $1.7 trillion, covering 88% of known transactions in the nonbank sector.
\nThe tech firms have the critical mass that would seme to put the CUs at a disadvantage, particularly given the user level data \u2014 rendered in real time \u2014 that they possess.
\nIf data is the gold, the oil, the \u2026 well, you name the precious commodity as metaphor here \u2026 underpinning banking services, it should be noted that last year we found\u00a057% of consumers said they trusted banks to keep their credentials secure, edging out Big Tech players.
\nThe traditional financial institutions (FIs) already are regulated, and have been regulated for decades, as they\u2019ve sought to innovate, funding those innovations with the deposits already on the books. But for forwarding-thinking banks, specifically for credit unions, we\u2019ve found in playbooks and interviews that two-thirds of CU members want more payment capabilities. The CUs that are putting time and effort into digital/omnichannel initiatives invest 13% more in payments innovation than bottom performers and benefit from 57% lower member churn, which conceivably blunts the movement of \u201cchurned customers\u201d to Big Tech.
\nThe banks themselves have insight into the payment behaviors and account usage that can help them take a proactive approach to keeping those members engaged. While Big Tech\u2019s point of access is through the mobile device, the banks have the digital and in-branch settings to keep customers\u2019 attention, and to offer loans and other services in data-driven context.
\nThe post Credit Unions vs Big Tech: Winner Gets the Customer appeared first on PYMNTS.com.
\n", "content_text": "For banks \u2014 and especially for credit unions \u2014 the battle with Big Tech for the hearts, minds and wallet share of consumers may seem a more than challenging proposition.\nAfter all, Big Tech\u2019s role across all facets of everyday life is pervasive, touching on everything from commerce to search to social media to the actual devices in one\u2019s hand (think Android and Apple) where banking services and products can be delivered.\nIn the report \u201cHow Top-Performing Credit Unions Innovate to Stay Competitive,\u201d a collaboration between PYMNTS Intelligence and Velera, we found that even among top-performing credit unions (CUs), who have relatively high scores on membership satisfaction, a majority (at 56%) view Big Tech firms as key competitors. Overall, 28% of CUs say they compete with Big Tech companies.\nDigital Wallets and Big Tech Supervision\nThere are, of course, signs that the competitive landscape will only get more competitive. As has been seen through the past several months, and as noted here, last year the Consumer Financial Protection Bureau (CFPB) sought to extend the same supervision to Big Tech firms that already is in place for banks and credit unions. The supervision would apply to companies that see volumes of more than 5 million transactions annually, which of course covers everyone from Apple to Amazon to Meta\u2019s financial ambitions. All told, the CFPB\u2019s rule-making would add 17 new entities to its purview, companies that facilitated about 12.8 billion transactions in 2021, with an estimated value of about $1.7 trillion, covering 88% of known transactions in the nonbank sector.\nThe tech firms have the critical mass that would seme to put the CUs at a disadvantage, particularly given the user level data \u2014 rendered in real time \u2014 that they possess.\nIf data is the gold, the oil, the \u2026 well, you name the precious commodity as metaphor here \u2026 underpinning banking services, it should be noted that last year we found\u00a057% of consumers said they trusted banks to keep their credentials secure, edging out Big Tech players.\nSome of the Advantages\nThe traditional financial institutions (FIs) already are regulated, and have been regulated for decades, as they\u2019ve sought to innovate, funding those innovations with the deposits already on the books. But for forwarding-thinking banks, specifically for credit unions, we\u2019ve found in playbooks and interviews that two-thirds of CU members want more payment capabilities. The CUs that are putting time and effort into digital/omnichannel initiatives invest 13% more in payments innovation than bottom performers and benefit from 57% lower member churn, which conceivably blunts the movement of \u201cchurned customers\u201d to Big Tech.\nThe banks themselves have insight into the payment behaviors and account usage that can help them take a proactive approach to keeping those members engaged. While Big Tech\u2019s point of access is through the mobile device, the banks have the digital and in-branch settings to keep customers\u2019 attention, and to offer loans and other services in data-driven context.\nThe post Credit Unions vs Big Tech: Winner Gets the Customer appeared first on PYMNTS.com.", "date_published": "2024-08-13T13:05:01-04:00", "date_modified": "2024-08-13T21:25:50-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/credit-unions-Big-Tech.png", "tags": [ "Amazon", "Apple", "bank regulation", "banking", "Banks", "Big Tech", "credit unions", "digital wallets", "Featured News", "financial services", "FinTech", "Meta", "News", "PYMNTS News", "regulations", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2050959", "url": "https://www.pymnts.com/news/banking/2024/fdic-letter-on-interactive-teller-machines-paves-way-for-more-branchless-banking/", "title": "FDIC Letter on ATMs Paves Way for More Branchless Banking", "content_html": "New input from the Federal Deposit Insurance Corp. (FDIC) is poised to pave the way for more \u201cbranchless banking\u201d \u2014 through interactive teller machines that can, conceivably, amp up competition between smaller banks and their larger counterparts.
\nIn a Friday (Aug. 9) financial institution letter, the FDIC said that state nonmember banks won\u2019t need the regulator\u2019s consent to set up bank branches as they insert interactive teller machines in different locations (i.e. not in branches) around their respective states.
\nAs the letter noted, \u201cInteractive Teller Machine (ITM) technology has become increasingly sophisticated in recent years. State nonmember banks have sought guidance from the FDIC regarding whether the proposed use of an ITM at a location other than an established branch facility would require the filing of a domestic branch application\u201d and went on to note requirements of the machines themselves:
\nThe ITM must operate as an \u201cautomated, unstaffed banking facility owned or operated by, or operated exclusively for, the bank,\u201d and which can serve existing customer by connecting them via interactive sessions with \u201cremotely located bank personnel.\u201d The other condition is that customers are able to conduct core banking functions with or without the assistance of those remote banking staffers \u2014 in other words, self-service functionality must be on offer with these ITMs.
\n\u201cITMs that operate outside of these parameters may require a branch application,\u201d the letter stated.
\nWe note that state nonmember banks are those financial institutions (FIs) that are not members of the Federal Reserve system, and, as the name implies, operate only with state charters, and not national charters. As of the second quarter of last year, as detailed here, there were more than 3,600 state banks, holding assets of about $8 trillion, compared to more than 750 national players with assets of nearly $15 trillion.
\nPYMNTS Intelligence data has spotlighted the rise of consumers\u2019 increasing comfort with digital and mobile banking, where those tech-enabled interactions are embraced by more than 40% of respondents surveyed across six countries. As for the smaller banks, 80% of all credit unions (CUs) report a positive return on investment resulting from their innovations across omnichannel settings; 12% of individuals opted to switch to their current CU primarily due to the lack of nearby branches at their previous FI. The branchless, ITM additions might go a long way toward rendering those customer/bank relationships a bit \u201cstickier.\u201d
\nIn but one example of those initiatives, in April, Arizona Financial Credit Union launched a partnership with retail banking firm NCR Atleos. AZFCU has picked Atleos\u2019 ATM as a Service (ATMaaS) offering to boost operational efficiencies within its self-service banking channel.
\nThe move toward more interactive banking via ATMs had taken firm root during the pandemic \u2014 the growth of multi-functional ATMs had been estimated to be growing by 6% though 2026 \u2014 and video banking with bank staff had been a key feature of those interactions. The FDIC letter from last week looks set to streamline the installation and use of those machines in more locations.
\nThe post FDIC Letter on ATMs Paves Way for More Branchless Banking appeared first on PYMNTS.com.
\n", "content_text": "New input from the Federal Deposit Insurance Corp. (FDIC) is poised to pave the way for more \u201cbranchless banking\u201d \u2014 through interactive teller machines that can, conceivably, amp up competition between smaller banks and their larger counterparts.\nIn a Friday (Aug. 9) financial institution letter, the FDIC said that state nonmember banks won\u2019t need the regulator\u2019s consent to set up bank branches as they insert interactive teller machines in different locations (i.e. not in branches) around their respective states.\nAs the letter noted, \u201cInteractive Teller Machine (ITM) technology has become increasingly sophisticated in recent years. State nonmember banks have sought guidance from the FDIC regarding whether the proposed use of an ITM at a location other than an established branch facility would require the filing of a domestic branch application\u201d and went on to note requirements of the machines themselves:\nThe ITM must operate as an \u201cautomated, unstaffed banking facility owned or operated by, or operated exclusively for, the bank,\u201d and which can serve existing customer by connecting them via interactive sessions with \u201cremotely located bank personnel.\u201d The other condition is that customers are able to conduct core banking functions with or without the assistance of those remote banking staffers \u2014 in other words, self-service functionality must be on offer with these ITMs.\n\u201cITMs that operate outside of these parameters may require a branch application,\u201d the letter stated.\nWe note that state nonmember banks are those financial institutions (FIs) that are not members of the Federal Reserve system, and, as the name implies, operate only with state charters, and not national charters. As of the second quarter of last year, as detailed here, there were more than 3,600 state banks, holding assets of about $8 trillion, compared to more than 750 national players with assets of nearly $15 trillion.\nConnected Banking, on Devices and on Site\nPYMNTS Intelligence data has spotlighted the rise of consumers\u2019 increasing comfort with digital and mobile banking, where those tech-enabled interactions are embraced by more than 40% of respondents surveyed across six countries. As for the smaller banks, 80% of all credit unions (CUs) report a positive return on investment resulting from their innovations across omnichannel settings; 12% of individuals opted to switch to their current CU primarily due to the lack of nearby branches at their previous FI. The branchless, ITM additions might go a long way toward rendering those customer/bank relationships a bit \u201cstickier.\u201d\nIn but one example of those initiatives, in April, Arizona Financial Credit Union launched a partnership with retail banking firm NCR Atleos. AZFCU has picked Atleos\u2019 ATM as a Service (ATMaaS) offering to boost operational efficiencies within its self-service banking channel.\nThe move toward more interactive banking via ATMs had taken firm root during the pandemic \u2014 the growth of multi-functional ATMs had been estimated to be growing by 6% though 2026 \u2014 and video banking with bank staff had been a key feature of those interactions. The FDIC letter from last week looks set to streamline the installation and use of those machines in more locations.\nThe post FDIC Letter on ATMs Paves Way for More Branchless Banking appeared first on PYMNTS.com.", "date_published": "2024-08-12T11:23:29-04:00", "date_modified": "2024-08-12T20:32:25-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/03/FDIC-1.jpg", "tags": [ "Bank Branches", "bank regulation", "banking", "Banks", "credit unions", "Digital Banking", "FDIC", "Featured News", "Federal Deposit Insurance Corp.", "federal reserve", "interactive teller machines", "ITMs", "News", "PYMNTS News", "Technology", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2049957", "url": "https://www.pymnts.com/news/banking/2024/clearbank-expands-clearing-embedded-banking-services-europe/", "title": "ClearBank Expands Clearing and Embedded Banking Services to Europe", "content_html": "Embedded banking firm ClearBank expanded from the United Kingdom to Europe.
\nThe newly established ClearBank Europe N.V. is headquartered in the Netherlands and has a Dutch banking license. It will offer U.K. and European institutions clearing and embedded banking services across Europe, according to a Friday (Aug. 9) press release.
\n\u201cWe\u2019re thrilled to be open for business in Europe \u2014 and this marks the first milestone in our global expansion strategy,\u201d ClearBank CEO Charles McManus said in the release. \u201cWe will soon fulfill client demand for euro clearing, as well as sterling, with the U.S. dollar coming next.\u201d
\nWith its new Credit Institution Licence from the European Central Bank, under the supervision of De Nederlandsche Bank, ClearBank can provide operating accounts, virtual accounts and access to major European payment rails, according to the release.
\nClearBank Europe N.V. will also offer multicurrency and foreign exchange (FX) services to its European clients, upgrade ClearBank U.K.\u2019s FX capabilities and roll out embedded banking services to European clients, the release said.
\nThe company\u2019s services are underpinned by a real-time cloud-native platform and are accessed via a single API, per the release. The platform holds client funds at the central bank \u2014 for maximum security, ClearBank said \u2014 and allows efficient and cost-effective transactions.
\n\u201cWith changing regulations impacting banks and payment providers across Europe \u2014 many of which will require major overhauls of technology infrastructure \u2014 we are best-placed to help our clients deliver compliant, next-generation banking and payments services,\u201d ClearBank Europe CEO Rintse Zijlstra said in the release.
\nMcManus said in April that ClearBank applied for a banking license in the Netherlands and was considering launching in the U.S. by 2026, possibly through an acquisition.
\nClearBank also said in April that it posted its first annual pre-tax profit of 18.4 million pounds (about $23.5 million) in fiscal year 2023, after posting a loss of 7.1 million pounds (about $9.1 million) in 2022.
\n\u201cWe have been able to offer resilience and stability in an uncertain market, building services our customers need, including a best-in-class embedded banking offering,\u201d McManus said at the time in a press release. \u201cBut this is just one step on the journey, not the finish line.\u201d
\nThe post ClearBank Expands Clearing and Embedded Banking Services to Europe appeared first on PYMNTS.com.
\n", "content_text": "Embedded banking firm ClearBank expanded from the United Kingdom to Europe.\nThe newly established ClearBank Europe N.V. is headquartered in the Netherlands and has a Dutch banking license. It will offer U.K. and European institutions clearing and embedded banking services across Europe, according to a Friday (Aug. 9) press release.\n\u201cWe\u2019re thrilled to be open for business in Europe \u2014 and this marks the first milestone in our global expansion strategy,\u201d ClearBank CEO Charles McManus said in the release. \u201cWe will soon fulfill client demand for euro clearing, as well as sterling, with the U.S. dollar coming next.\u201d\nWith its new Credit Institution Licence from the European Central Bank, under the supervision of De Nederlandsche Bank, ClearBank can provide operating accounts, virtual accounts and access to major European payment rails, according to the release.\nClearBank Europe N.V. will also offer multicurrency and foreign exchange (FX) services to its European clients, upgrade ClearBank U.K.\u2019s FX capabilities and roll out embedded banking services to European clients, the release said.\nThe company\u2019s services are underpinned by a real-time cloud-native platform and are accessed via a single API, per the release. The platform holds client funds at the central bank \u2014 for maximum security, ClearBank said \u2014 and allows efficient and cost-effective transactions.\n\u201cWith changing regulations impacting banks and payment providers across Europe \u2014 many of which will require major overhauls of technology infrastructure \u2014 we are best-placed to help our clients deliver compliant, next-generation banking and payments services,\u201d ClearBank Europe CEO Rintse Zijlstra said in the release.\nMcManus said in April that ClearBank applied for a banking license in the Netherlands and was considering launching in the U.S. by 2026, possibly through an acquisition.\nClearBank also said in April that it posted its first annual pre-tax profit of 18.4 million pounds (about $23.5 million) in fiscal year 2023, after posting a loss of 7.1 million pounds (about $9.1 million) in 2022.\n\u201cWe have been able to offer resilience and stability in an uncertain market, building services our customers need, including a best-in-class embedded banking offering,\u201d McManus said at the time in a press release. \u201cBut this is just one step on the journey, not the finish line.\u201d\nThe post ClearBank Expands Clearing and Embedded Banking Services to Europe appeared first on PYMNTS.com.", "date_published": "2024-08-09T10:21:31-04:00", "date_modified": "2024-08-11T21:36:15-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/ClearBank.png", "tags": [ "APIs", "B2B", "B2B Payments", "banking", "ClearBank", "commercial payments", "Digital Banking", "Embedded Banking", "embedded finance", "europe", "international", "News", "PYMNTS News", "uk", "What's Hot", "What's Hot In B2B", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2023085", "url": "https://www.pymnts.com/news/banking/2024/zafin-and-10x-partner-to-facilitate-core-banking-system-modernization/", "title": "Zafin and 10x Partner to Facilitate Core Banking System Modernization", "content_html": "Zafin and 10x Banking have partnered to enable banks and financial institutions to modernize their core systems incrementally.
\nThis phased approach makes the implementation less disruptive while delivering immediate value, thereby mitigating risk, maintaining stakeholder confidence and reducing upfront capital expenditures, the companies said in a Tuesday (Aug. 6) press release.
\nThe new partnership brings together Zafin\u2019s software-as-a-service (SaaS) core modernization and transformation solutions for banks and 10x Banking\u2019s cloud-native core banking platform, according to the release.
\nWith the integration of Zafin into the 10x Banking platform, banks can have one seamless interface for multiple cores, the release said.
\nThis collaboration enables banks to build and manage pricing and products across multiple core systems and tailor the platform to their own needs and requirements, per the release.
\n\u201cTogether, 10x Banking and Zafin offer banks years of combined financial services expertise and proven technologies that reduce complexity, enabling banks to work in a more agile operating environment to bring new products to market faster and at lower cost,\u201d Okan Ozaltin, chief product officer at 10x Banking, said in the release.
\nChris Dickin, global head of strategic partnerships at Zafin, said in the release: \u201cWorking with 10x Banking provides banks with a highly modular, enterprise-grade core that easily scales with Zafin\u2019s product and pricing platform so banks can gain efficiencies by streamlining existing and new operations.\u201d
\nThe banking sector is moving inexorably toward doing everything faster, which means that the back-end processes must be faster too, PYMNTS reported in June.
\nIn another recent development in this space, Mastercard and Thought Machine said in June that they have expanded their partnership to deliver payments and core banking capabilities to financial institutions worldwide.
\nTogether, these companies aim to help financial institutions shift from legacy core banking and payment technologies to cloud-native ones that are designed to enhance banking efficiency, lower costs, enable rapid introduction of more customer-centric experience and allow banks to offer more innovative pay-now solutions.
\nIn March, Citi Ventures became a strategic investor in core banking provider Tuum, saying that Tuum\u2019s platform \u201ccan help accelerate this long overdue transformation across the industry.\u201d
\nThe post Zafin and 10x Partner to Facilitate Core Banking System Modernization appeared first on PYMNTS.com.
\n", "content_text": "Zafin and 10x Banking have partnered to enable banks and financial institutions to modernize their core systems incrementally.\nThis phased approach makes the implementation less disruptive while delivering immediate value, thereby mitigating risk, maintaining stakeholder confidence and reducing upfront capital expenditures, the companies said in a Tuesday (Aug. 6) press release.\nThe new partnership brings together Zafin\u2019s software-as-a-service (SaaS) core modernization and transformation solutions for banks and 10x Banking\u2019s cloud-native core banking platform, according to the release.\nWith the integration of Zafin into the 10x Banking platform, banks can have one seamless interface for multiple cores, the release said.\nThis collaboration enables banks to build and manage pricing and products across multiple core systems and tailor the platform to their own needs and requirements, per the release.\n\u201cTogether, 10x Banking and Zafin offer banks years of combined financial services expertise and proven technologies that reduce complexity, enabling banks to work in a more agile operating environment to bring new products to market faster and at lower cost,\u201d Okan Ozaltin, chief product officer at 10x Banking, said in the release.\nChris Dickin, global head of strategic partnerships at Zafin, said in the release: \u201cWorking with 10x Banking provides banks with a highly modular, enterprise-grade core that easily scales with Zafin\u2019s product and pricing platform so banks can gain efficiencies by streamlining existing and new operations.\u201d\nThe banking sector is moving inexorably toward doing everything faster, which means that the back-end processes must be faster too, PYMNTS reported in June.\nIn another recent development in this space, Mastercard and Thought Machine said in June that they have expanded their partnership to deliver payments and core banking capabilities to financial institutions worldwide.\nTogether, these companies aim to help financial institutions shift from legacy core banking and payment technologies to cloud-native ones that are designed to enhance banking efficiency, lower costs, enable rapid introduction of more customer-centric experience and allow banks to offer more innovative pay-now solutions.\nIn March, Citi Ventures became a strategic investor in core banking provider Tuum, saying that Tuum\u2019s platform \u201ccan help accelerate this long overdue transformation across the industry.\u201d\nThe post Zafin and 10x Partner to Facilitate Core Banking System Modernization appeared first on PYMNTS.com.", "date_published": "2024-08-06T11:47:54-04:00", "date_modified": "2024-08-06T11:47:54-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/Zafin-10x-core-banking.png", "tags": [ "10x Banking", "banking", "Banks", "Digital Banking", "digital transformation", "financial services", "News", "partnerships", "PYMNTS News", "SaaS", "software", "What's Hot", "Zafin", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2022738", "url": "https://www.pymnts.com/news/banking/2024/fis-adds-curinos-deposit-optimizing-tools-to-core-banking-platforms/", "title": "FIS Adds Curinos\u2019 Deposit Optimizing Tools to Core Banking Platforms", "content_html": "FIS has teamed with Curinos to help financial institutions optimize their deposit growth.
\nWith this collaboration, Curinos\u2019 deposit optimizing tools will be more accessible to the financial institutions that use FIS\u2019 IBS and Horizon core banking platforms, the companies said in a Monday (Aug. 5) press release.
\n\u201cOur alliance with Curinos is one more example of how FIS is delivering on our vision to unlock financial technology to the world by providing innovative, data-driven tools to help our clients achieve their strategic objectives,\u201d Melissa Cullen, head of core banking solutions at FIS, said in the release.
\nCurinos offers data, technologies and insights that help financial institutions make better, more profitable decisions, according to the release.
\nThe company offers a comprehensive suite of artificial intelligence (AI)-based decisioning tools, predictive analytics and science-based platforms that are fed by vast, proprietary data, the release said.
\nClients that have used its deposit optimizing tools have typically outperformed other financial institutions, gaining a deposit pricing advantage of as much as 15 basis points in both rising and declining rate environments, per the release.
\nThe partnership of FIS and Curinos comes at a time when financial institutions are working to grow deposits while also dealing with obstacles like fluctuating interest rates, regulatory demands and slowing deposit growth, according to the release.
\n\u201cThis transformative partnership leverages FIS\u2019 robust customer relationships and Curinos\u2019 depth of deposit data and optimization capabilities, empowering FIS\u2019 clients to achieve their funding goals,\u201d Craig Woodward, CEO at Curinos, said in the release.
\nThis partnership comes on the heels of several other new product offerings introduced by FIS.
\nIn July, the firm launched a solution designed to help banks source, underwrite and fund loans to small and medium-sized businesses (SMBs). The new SMB Digital Lending solution, which was created in partnership with Lendio, is the first product from FIS to focus specifically on loans for SMBs.
\nIn May, FIS launched a new version of its mobile banking application for financial institutions, saying it features a simplified design, new fraud prevention features and upgrades to its functionality.
\nAlso in May, the firm launched an embedded finance platform designed for use by financial institutions, businesses and software developers.
\nThe post FIS Adds Curinos\u2019 Deposit Optimizing Tools to Core Banking Platforms appeared first on PYMNTS.com.
\n", "content_text": "FIS has teamed with Curinos to help financial institutions optimize their deposit growth.\nWith this collaboration, Curinos\u2019 deposit optimizing tools will be more accessible to the financial institutions that use FIS\u2019 IBS and Horizon core banking platforms, the companies said in a Monday (Aug. 5) press release.\n\u201cOur alliance with Curinos is one more example of how FIS is delivering on our vision to unlock financial technology to the world by providing innovative, data-driven tools to help our clients achieve their strategic objectives,\u201d Melissa Cullen, head of core banking solutions at FIS, said in the release.\nCurinos offers data, technologies and insights that help financial institutions make better, more profitable decisions, according to the release.\nThe company offers a comprehensive suite of artificial intelligence (AI)-based decisioning tools, predictive analytics and science-based platforms that are fed by vast, proprietary data, the release said.\nClients that have used its deposit optimizing tools have typically outperformed other financial institutions, gaining a deposit pricing advantage of as much as 15 basis points in both rising and declining rate environments, per the release.\nThe partnership of FIS and Curinos comes at a time when financial institutions are working to grow deposits while also dealing with obstacles like fluctuating interest rates, regulatory demands and slowing deposit growth, according to the release.\n\u201cThis transformative partnership leverages FIS\u2019 robust customer relationships and Curinos\u2019 depth of deposit data and optimization capabilities, empowering FIS\u2019 clients to achieve their funding goals,\u201d Craig Woodward, CEO at Curinos, said in the release.\nThis partnership comes on the heels of several other new product offerings introduced by FIS.\nIn July, the firm launched a solution designed to help banks source, underwrite and fund loans to small and medium-sized businesses (SMBs). The new SMB Digital Lending solution, which was created in partnership with Lendio, is the first product from FIS to focus specifically on loans for SMBs.\nIn May, FIS launched a new version of its mobile banking application for financial institutions, saying it features a simplified design, new fraud prevention features and upgrades to its functionality.\nAlso in May, the firm launched an embedded finance platform designed for use by financial institutions, businesses and software developers.\nThe post FIS Adds Curinos\u2019 Deposit Optimizing Tools to Core Banking Platforms appeared first on PYMNTS.com.", "date_published": "2024-08-05T20:40:07-04:00", "date_modified": "2024-08-05T20:40:07-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/FIS-Curinos.jpg", "tags": [ "banking", "core banking platforms", "Craig Woodward", "Curinos", "data analysis", "deposit optimization", "FIS", "Horizon", "IBS", "Melissa Cullen", "News", "PYMNTS News", "What's Hot", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2021769", "url": "https://www.pymnts.com/news/banking/2024/svbs-ex-owner-ends-bankruptcy-amid-fdic-litigation/", "title": "SVB\u2019s Ex-Owner Ends Bankruptcy Amid FDIC Litigation", "content_html": "Silicon Valley Bank\u2019s former owner has gotten a judge\u2019s permission to end its bankruptcy.
\nAs Reuters reported Saturday (Aug. 3), SVB Financial Group has been given leave to turn over its assets to its creditors, bringing its bankruptcy to a close.
\nAccording to the report, the company\u2019s bankruptcy restructuring includes a provision for the establishment of a trust to move forward with a suit against the U.S. Federal Deposit Insurance Corp. (FDIC) which seized $1.9 billion from SVB Financial last year during Silicon Valley Bank’s collapse \u2014 one of the biggest in U.S. history
\nSVB claims that this money should be returned because the FDIC had invoked a \u201csystemic risk\u201d exemption to safeguard all deposits at Silicon Valley Bank, including accounts with upwards of the $250,000 that the FDIC usually protects.
\nThe FDIC maintains it didn\u2019t set out to protect SVB Financial\u2019s bank accounts, but rather that it legally seized the money to cover the cost of bailing out Silicon Valley Bank.
\nDepending on the outcome of the lawsuit, SVB Financial\u2019s senior bondholders \u2014 who are owed $3.3 billion \u2014 will get back between 41% and 96% of what they are owed, Reuters said.
\nSVB Financial filed for bankruptcy in March 2023, soon after Silicon Valley bank was shut down and taken over by regulators. The FDIC took over the bank following a run on deposits, and eventually sold the bank to First Citizens.
\nSilicon Valley Bank was one of a handful of regional banks that collapsed last year, leading the Federal Reserve and other U.S. regulators to put together new banking regulations in response to last year\u2019s crisis, with rules focused on liquidity requirements to help prevent bank runs.
\nAmid the turmoil in the sector, PYMNTS has been tracking a shift in behavior related to banking, with smaller community banks and credit unions increasingly becoming the place where consumers go when they want credit cards.
\nThe percentage of consumers with a community bank or credit union card as their primary card rose from 8.3% in 2020 to 13% in 2023, according to PYMNTS Intelligence, while close to a quarter of consumers reported that they would likely turn to these financial institutions the next time they wanted to sign up for a new card.
\nThe post SVB’s Ex-Owner Ends Bankruptcy Amid FDIC Litigation appeared first on PYMNTS.com.
\n", "content_text": "Silicon Valley Bank\u2019s former owner has gotten a judge\u2019s permission to end its bankruptcy.\nAs Reuters reported Saturday (Aug. 3), SVB Financial Group has been given leave to turn over its assets to its creditors, bringing its bankruptcy to a close.\nAccording to the report, the company\u2019s bankruptcy restructuring includes a provision for the establishment of a trust to move forward with a suit against the U.S. Federal Deposit Insurance Corp. (FDIC) which seized $1.9 billion from SVB Financial last year during Silicon Valley Bank’s collapse \u2014 one of the biggest in U.S. history\nSVB claims that this money should be returned because the FDIC had invoked a \u201csystemic risk\u201d exemption to safeguard all deposits at Silicon Valley Bank, including accounts with upwards of the $250,000 that the FDIC usually protects.\nThe FDIC maintains it didn\u2019t set out to protect SVB Financial\u2019s bank accounts, but rather that it legally seized the money to cover the cost of bailing out Silicon Valley Bank.\nDepending on the outcome of the lawsuit, SVB Financial\u2019s senior bondholders \u2014 who are owed $3.3 billion \u2014 will get back between 41% and 96% of what they are owed, Reuters said.\nSVB Financial filed for bankruptcy in March 2023, soon after Silicon Valley bank was shut down and taken over by regulators. The FDIC took over the bank following a run on deposits, and eventually sold the bank to First Citizens.\nSilicon Valley Bank was one of a handful of regional banks that collapsed last year, leading the Federal Reserve and other U.S. regulators to put together new banking regulations in response to last year\u2019s crisis, with rules focused on liquidity requirements to help prevent bank runs.\nAmid the turmoil in the sector, PYMNTS has been tracking a shift in behavior related to banking, with smaller community banks and credit unions increasingly becoming the place where consumers go when they want credit cards.\nThe percentage of consumers with a community bank or credit union card as their primary card rose from 8.3% in 2020 to 13% in 2023, according to PYMNTS Intelligence, while close to a quarter of consumers reported that they would likely turn to these financial institutions the next time they wanted to sign up for a new card.\nThe post SVB’s Ex-Owner Ends Bankruptcy Amid FDIC Litigation appeared first on PYMNTS.com.", "date_published": "2024-08-04T17:16:31-04:00", "date_modified": "2024-08-04T17:16:31-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/SVB-Financial-Group-bankruptcy.jpg", "tags": [ "bank collapse", "bankruptcy", "FDIC", "News", "PYMNTS News", "regional banking", "regional banks", "silicon valley bank", "Silicon Valley Bank Updates", "SVB collapse", "SVB Financial Group", "What's Hot", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2021298", "url": "https://www.pymnts.com/news/banking/2024/british-banks-cut-costs-interest-rates-begin-decline/", "title": "British Banks Cut Costs as Interest Rates Begin to Decline", "content_html": "The largest banks in the United Kingdom are reportedly cutting costs to protect profits as interest rates begin to decline.
\nThe moves come as the Bank of England voted this week to cut rates for the first time in four years and signaled that there are more cuts on the way, Bloomberg reported Friday (Aug. 2).
\nBanks have told employees to forego business class and fly economy for trips of five hours or less, to seek forms of transportation other than taxi when going to meetings, and to arrange three meetings per day before booking a business trip, according to the report.
\nStandard Chartered has more than 200 programs in place to help it cap its annual expenses at $12 billion in 2026, per the report.
\nWhile there are likely to be job cuts at some of the biggest British banks, most of the banks aim to focus on property, infrastructure and other cost reductions that don\u2019t involve headcount reductions, the report said.
\nIt was reported in July that HSBC was slowing hiring and asking investment bankers to reduce expenses as part of an effort by CEO Noel Quinn to reduce costs in anticipation of interest rate cuts.
\nThe banking giant stopped filling open positions, in some cases, and ordered some departments to stop hiring altogether.
\nIt was also reported in July that Lloyds told staff to reduce their use of taxis and business class flights as part of the banking giant\u2019s attempt to cut costs amid a $5 billion strategic overhaul.
\n\u201cAs we grow and expand our business … it\u2019s important that we also keep a tight grip on our costs \u2014 particularly where our personal choices have a great impact,\u201d Lloyds Chief Operating Officer Nick Laird wrote at the time in a memo sent to the bank\u2019s corporate and institutional banking staff. \u201cThe clearest example of that is our travel which has both a financial and environmental cost.\u201d
\nThe Bank of England announced its bank rate reduction Thursday (Aug. 1), saying that its Monetary Policy Committee voted 5-4 to cut the bank rate by 0.25 percentage points, from 5.25% to 5%.
\nThe post British Banks Cut Costs as Interest Rates Begin to Decline appeared first on PYMNTS.com.
\n", "content_text": "The largest banks in the United Kingdom are reportedly cutting costs to protect profits as interest rates begin to decline.\nThe moves come as the Bank of England voted this week to cut rates for the first time in four years and signaled that there are more cuts on the way, Bloomberg reported Friday (Aug. 2).\nBanks have told employees to forego business class and fly economy for trips of five hours or less, to seek forms of transportation other than taxi when going to meetings, and to arrange three meetings per day before booking a business trip, according to the report.\nStandard Chartered has more than 200 programs in place to help it cap its annual expenses at $12 billion in 2026, per the report.\nWhile there are likely to be job cuts at some of the biggest British banks, most of the banks aim to focus on property, infrastructure and other cost reductions that don\u2019t involve headcount reductions, the report said.\nIt was reported in July that HSBC was slowing hiring and asking investment bankers to reduce expenses as part of an effort by CEO Noel Quinn to reduce costs in anticipation of interest rate cuts.\nThe banking giant stopped filling open positions, in some cases, and ordered some departments to stop hiring altogether.\nIt was also reported in July that Lloyds told staff to reduce their use of taxis and business class flights as part of the banking giant\u2019s attempt to cut costs amid a $5 billion strategic overhaul.\n\u201cAs we grow and expand our business … it\u2019s important that we also keep a tight grip on our costs \u2014 particularly where our personal choices have a great impact,\u201d Lloyds Chief Operating Officer Nick Laird wrote at the time in a memo sent to the bank\u2019s corporate and institutional banking staff. \u201cThe clearest example of that is our travel which has both a financial and environmental cost.\u201d\nThe Bank of England announced its bank rate reduction Thursday (Aug. 1), saying that its Monetary Policy Committee voted 5-4 to cut the bank rate by 0.25 percentage points, from 5.25% to 5%.\nThe post British Banks Cut Costs as Interest Rates Begin to Decline appeared first on PYMNTS.com.", "date_published": "2024-08-02T15:16:24-04:00", "date_modified": "2024-08-02T15:16:24-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/11/Bank-of-England.jpg", "tags": [ "Bank of England", "banking", "Banks", "Interest Rates", "international", "News", "PYMNTS News", "Standard Chartered", "uk", "What's Hot", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2019847", "url": "https://www.pymnts.com/news/banking/2024/report-citi-repeatedly-broke-feds-intercompany-transaction-limits/", "title": "Report: Citi Allegedly Broke Fed\u2019s Intercompany Transaction Limits", "content_html": "Citigroup\u00a0reportedly made repeated breaches of a Federal Reserve rule limiting intercompany transactions.
\nThose breaches led to errors in the banking giant\u2019s internal liquidity reporting, Reuters\u00a0reported\u00a0Wednesday (July 31), citing an internal document from Citi.
\nAccording to the report, the Fed\u2019s Regulation W requires banks to restrict transactions such as loans to the affiliates under their control to protect depositors whose funds are insured up to $250,000 by the government.
\nReuters notes that the infractions come as regulators criticize problems with Citi\u2019s risk management and internal controls, and with the Federal Reserve and Office of the Comptroller of the Currency (OCC) fining the bank\u00a0$136 million\u00a0two weeks ago for a lack of progress on compliance.
\nA spokesperson for Citi told PYMNTS the bank was not confirming the details of Reuters report.
\nThe report included a statement from Citi saying the bank was “fully committed to complying with laws and regulations and have a strong Regulation W framework in place to ensure prompt identification, escalation and remediation of issues in a timely manner.\u201d
\nCiti was also fined\u00a0$400 million in 2020\u00a0after regulators found \u201congoing deficiencies\u201d in its handling of risk management and internal controls.
\nThe bank\u2019s \u201csubsequent reaction to the breaches resulted in liquidity reporting inaccuracies,\u201d according to the internal document at the center of the Reuters report.
\nIn other Citi news, PYMNTS on Wednesday spoke with\u00a0Debo Sen, head of payments at Citi Services, about the state of the instant/real-time payment space for the series, \u201cWhat\u2019s Next in Payments: The Halftime Report.\u201d
\nShe highlighted the rapid adoption of these new payment rails in regions such as Asia-Pacific (APAC) and Latin America, with India and Brazil leading the way. In India,\u00a0about 85%\u00a0of all payments are now real time, due to the Unified Payments Interface (UPI) system, a sign of the country\u2019s advances in digital payments infrastructure.
\nBrazil is a close second, with\u00a0nearly 80%\u00a0adoption. However, this trend is not limited to emerging markets, Sen added, noting that the U.S. and the European Union are also putting forth regulations and building infrastructure to support real-time payments.
\n\u201cThe interesting thing is there is always a lot of conversation as to whether\u00a0instant payments will cannibalize\u00a0other methods of payment \u2014 but in fact, it is digitizing cash in those economies and eliminating cash in many cases,\u201d Sen told PYMNTS.
\nThe post Report: Citi Allegedly Broke Fed\u2019s Intercompany Transaction Limits appeared first on PYMNTS.com.
\n", "content_text": "Citigroup\u00a0reportedly made repeated breaches of a Federal Reserve rule limiting intercompany transactions.\nThose breaches led to errors in the banking giant\u2019s internal liquidity reporting, Reuters\u00a0reported\u00a0Wednesday (July 31), citing an internal document from Citi.\nAccording to the report, the Fed\u2019s Regulation W requires banks to restrict transactions such as loans to the affiliates under their control to protect depositors whose funds are insured up to $250,000 by the government.\nReuters notes that the infractions come as regulators criticize problems with Citi\u2019s risk management and internal controls, and with the Federal Reserve and Office of the Comptroller of the Currency (OCC) fining the bank\u00a0$136 million\u00a0two weeks ago for a lack of progress on compliance.\nA spokesperson for Citi told PYMNTS the bank was not confirming the details of Reuters report.\nThe report included a statement from Citi saying the bank was “fully committed to complying with laws and regulations and have a strong Regulation W framework in place to ensure prompt identification, escalation and remediation of issues in a timely manner.\u201d\nCiti was also fined\u00a0$400 million in 2020\u00a0after regulators found \u201congoing deficiencies\u201d in its handling of risk management and internal controls.\nThe bank\u2019s \u201csubsequent reaction to the breaches resulted in liquidity reporting inaccuracies,\u201d according to the internal document at the center of the Reuters report.\nIn other Citi news, PYMNTS on Wednesday spoke with\u00a0Debo Sen, head of payments at Citi Services, about the state of the instant/real-time payment space for the series, \u201cWhat\u2019s Next in Payments: The Halftime Report.\u201d\nShe highlighted the rapid adoption of these new payment rails in regions such as Asia-Pacific (APAC) and Latin America, with India and Brazil leading the way. In India,\u00a0about 85%\u00a0of all payments are now real time, due to the Unified Payments Interface (UPI) system, a sign of the country\u2019s advances in digital payments infrastructure.\nBrazil is a close second, with\u00a0nearly 80%\u00a0adoption. However, this trend is not limited to emerging markets, Sen added, noting that the U.S. and the European Union are also putting forth regulations and building infrastructure to support real-time payments.\n\u201cThe interesting thing is there is always a lot of conversation as to whether\u00a0instant payments will cannibalize\u00a0other methods of payment \u2014 but in fact, it is digitizing cash in those economies and eliminating cash in many cases,\u201d Sen told PYMNTS.\nThe post Report: Citi Allegedly Broke Fed\u2019s Intercompany Transaction Limits appeared first on PYMNTS.com.", "date_published": "2024-07-31T13:32:33-04:00", "date_modified": "2024-07-31T18:19:45-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/10/Citi-1.jpg", "tags": [ "bank regulation", "banking", "Banks", "Citi", "Citigroup", "federal reserve", "News", "Office of the Comptroller of the Currency", "PYMNTS News", "regulations", "risk management", "What's Hot", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2019238", "url": "https://www.pymnts.com/news/banking/2024/csi-unveils-developer-portal-for-community-banks/", "title": "CSI Unveils Developer Portal for Community Banks", "content_html": "Financial software provider CSI has debuted a developer portal for community banks.
\n\u201cIn addition to a growing list of integrated fintechs and integrators, CSI community banks and developers now have access to new documentation methods, resources and standardizations that simplify the implementation process and accelerate time to value,\u201d the company said in a news release Tuesday (July 30).
\nThat means these banks can consider more application programming interfaces (APIs) across account opening, payments, document services and other applications, to onboard solutions to open new lines of revenue, streamline back-office operations and enhance their engagement with account holders.
\nAccording to the release, the portal includes updated technical and application guides along with test environments that let both parties better understand data communication and associated business rules.
\n\u201cCommunity banks competing in today\u2019s market require the right combination of flexibility, speed and efficiency that can meet the needs of their account holders without a significant tech investment,\u201d said David Culbertson, CEO and president of CSI.\u00a0\u201cOur Developer Portal is designed to meet all three of those needs with the scaffolding community banks need to reduce the burden of adoption.\u201d
\nPYMNTS examined bank/FinTech collaborations earlier this year, noting they were born out of a growing demand by digitally-savvy consumers for frictionless banking experiences.
\n\u201cBanks are starting to realize the speed at which technology has changed the world,\u201d James Butland, vice president of payments and U.K. managing director at Mangopay, told PYMNTS for the series \u201cWhat\u2019s Next in Payments: What is a Bank? The Changing Landscape of Banking and Financial Services.\u201d
\n\u201cThe challenge that a traditional bank has, is that they sit on 150, 200 years of legacy infrastructure and probably 60 years of legacy technology. So, banks have found it difficult to innovate quickly,\u201d Butland added.
\nMeanwhile, PYMNTS spoke recently with Ken Gayron, CSI\u2019s chief financial officer, about the role of the CFO in today\u2019s world.
\n\u201cBeing a modern CFO is about using your analytical and financial skills to partner with the business, ensuring it makes the best decisions with the right financial lens. At the same time, you have to drive efficiency through automation and process improvement so that you can scale profitably and maintain a competitive advantage,\u201d Gayron said.
\nThe post CSI Unveils Developer Portal for Community Banks appeared first on PYMNTS.com.
\n", "content_text": "Financial software provider CSI has debuted a developer portal for community banks.\n\u201cIn addition to a growing list of integrated fintechs and integrators, CSI community banks and developers now have access to new documentation methods, resources and standardizations that simplify the implementation process and accelerate time to value,\u201d the company said in a news release Tuesday (July 30).\nThat means these banks can consider more application programming interfaces (APIs) across account opening, payments, document services and other applications, to onboard solutions to open new lines of revenue, streamline back-office operations and enhance their engagement with account holders.\nAccording to the release, the portal includes updated technical and application guides along with test environments that let both parties better understand data communication and associated business rules.\n\u201cCommunity banks competing in today\u2019s market require the right combination of flexibility, speed and efficiency that can meet the needs of their account holders without a significant tech investment,\u201d said David Culbertson, CEO and president of CSI.\u00a0\u201cOur Developer Portal is designed to meet all three of those needs with the scaffolding community banks need to reduce the burden of adoption.\u201d\nPYMNTS examined bank/FinTech collaborations earlier this year, noting they were born out of a growing demand by digitally-savvy consumers for frictionless banking experiences.\n\u201cBanks are starting to realize the speed at which technology has changed the world,\u201d James Butland, vice president of payments and U.K. managing director at Mangopay, told PYMNTS for the series \u201cWhat\u2019s Next in Payments: What is a Bank? The Changing Landscape of Banking and Financial Services.\u201d\n\u201cThe challenge that a traditional bank has, is that they sit on 150, 200 years of legacy infrastructure and probably 60 years of legacy technology. So, banks have found it difficult to innovate quickly,\u201d Butland added.\nMeanwhile, PYMNTS spoke recently with Ken Gayron, CSI\u2019s chief financial officer, about the role of the CFO in today\u2019s world.\n\u201cBeing a modern CFO is about using your analytical and financial skills to partner with the business, ensuring it makes the best decisions with the right financial lens. At the same time, you have to drive efficiency through automation and process improvement so that you can scale profitably and maintain a competitive advantage,\u201d Gayron said.\nThe post CSI Unveils Developer Portal for Community Banks appeared first on PYMNTS.com.", "date_published": "2024-07-30T14:02:20-04:00", "date_modified": "2024-07-30T14:02:20-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/12/CSI-FinTech.jpg", "tags": [ "APIs", "banking", "Banking Software", "Banks", "community banks", "CSI", "financial institutions", "financial software", "FinTechs", "News", "PYMNTS News", "What's Hot", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2017886", "url": "https://www.pymnts.com/news/banking/2024/uks-open-banking-milestone-what-10-million-users-mean-for-uks-financial-services-future/", "title": "UK\u2019s Open Banking Milestone: What 10 Million Users Mean for UK\u2019s Financial Services Future", "content_html": "While open banking starts to gain traction in the U.S., across the pond the banking and payments sector is celebrating milestones. Last week it celebrated ten million active users. Is that a good number? Consider two facts before you answer. One: Ten million users is 15% of the entire U.K. population. If 15% of the U.S. population was using open banking, that would be about 50 million users. Two: Just 18 months ago that U.K. number was only six million open banking users.
\nSo, is ten million a good number? PYMNTS put the question to Marion King, chairperson and trustee of the U.K.\u2019s Open Banking Ltd regulatory and advocacy group. And while she\u2019s certainly not resting on any laurels, she\u2019s satisfied that the government-mandated direction from the country\u2019s top-tier financial institutions to make data sharing and new payment options available will lead to more success in the short term. Part of that momentum, she told PYMNTS, will come from the next tier of banks and their business customers.
\n\u201cIt\u2019s a very good number,\u201d King said. \u201cWe\u2019re seeing really strong double-digit growth. And I think this is just the beginning, because you need to remember that this is only measured from the nine banks that were involved in the Competition and Market Authority\u2019s initial open banking effort \u2014 so it could actually be higher. So double digit growth month on month is very positive, and I think it shows pent-up demand for secure data exchange as we move forward with all of this.\u201d
\nMoving forward from the 10 million-user milestone started at a \u201cStrategy Summit\u201d on July 26 with several analysts, banks, neobanks and government regulatory agencies. At that meeting Andy Sacre, head of payments for U.K. neobank Monzo, told the audience that around six million of Monzo\u2019s customers have used open banking \u2014 sharing their data to get better credit card rates, paying their tax bill, or connecting other bank accounts to their Monzo app so they can see everything in one place. Those are just some of the use cases King believes have made open banking in the U.K. a viable commercial proposition.
\n\u201cOne of the biggest use cases we have is the ability for people to pay their tax bills through their bank account without sharing any account details,\u201d King said. This feature bypasses traditional card systems, offering a secure and direct payment method. The U.K.\u2019s HM Revenue and Custom\u2019s agency (its version of the IRS) collected over \u00a33 billion at the beginning of the year from tax returns using this method.
\nAnother significant application is in the SMB sector, where open banking facilitates the integration of accounting packages, minimizing manual systems and supporting real-time cash flow management. King also pointed out the not-for-profit sector is also benefiting, with organizations like Salad Money leveraging open banking to offer secure loans to those traditionally underserved by the banking system.
\nIn the U.S. companies like Trustly are moving open banking forward, as are Visa and Mastercard with their API strategies. A PYMNTS Intelligence report, produced in conjunction with Trustly, found that nearly half of U.S. respondents are highly willing to use open banking\u00a0for at least one type of expense, including monthly bills, groceries or subscriptions.\u00a0Despite high interest in this method, it comes in third place behind paying via manual input of their account and routing numbers and using bill pay services offered by their banks. The study found open banking providers must confront an awareness gap: 44% of non-users said they were not familiar with the payment method.
\nLooking across the Atlantic, King suggested four cornerstone strategies to catalyze open banking in the U.S.:
\n1. Regulatory Framework: Compel data sharing among financial institutions to ensure participation and ecosystem viability.
\n2. Economic Model: Develop a model that makes data access economically sustainable, ensuring it supports innovation and compensates data providers appropriately.
\n3. Technical and Data Standards: Establish uniform standards to maintain service quality and reliability.
\n4. Broad Participation: Encourage wide participation across financial entities to enhance service accessibility and utility.
\n\u201cThese elements are crucial for creating a thriving open banking environment that benefits all stakeholders,\u201d King said.
\nBut while 10 million is a good number, the U.K.\u2019s roadmap to expand open banking usage to 20 million revolves around increasing participation across the economy and launching innovative payment methods like variable recurring payments. VRPs, by Open Banking U.K.\u2019s definition, are payments that let customers safely connect authorized payments providers to their bank accounts so that they can make payments on the customer\u2019s behalf, in line with agreed limits. VRPs offer more control and transparency than existing alternatives such as Direct Debit payments.
\n\u201cThese enhancements put more control into the hands of consumers, aligning with our goals of transparency and user empowerment,\u201d King said.
\nKing is optimistic about the role of Big Tech in open banking, citing Apple\u2019s integration of open banking features in the U.K. as a pioneering example. \u201cBig Tech\u2019s engagement will significantly boost user volumes, provided we maintain a strong commercial framework,\u201d she noted.
\nAs for ongoing challenges, King emphasizes the importance of continuous attention to fraud prevention and consumer protection, ensuring that as user numbers grow, the system remains secure and trustworthy.
\n\u201cIt’s not just about financial services, it\u2019s about fostering a data-sharing economy that benefits everyone. The U.K.\u2019s approach, combining mandated participation with voluntary contributions, creates a model that others, including the U.S., could learn from,\u201d King said.
\nShe also mentioned the support from the new Labour government in the U.K., expressing optimism about their enthusiasm for open banking and the broader implications of data-sharing policies. King highlighted that the Labour Party has already initiated a standalone bill for smart data and digital identity, which includes open banking, demonstrating their commitment to advancing these initiatives.
\nWith government support and strategic industry collaboration, King is confident that open banking in the U.K. will not only reach but potentially exceed the 20 million user milestone. \u201cWe\u2019re setting the foundation for a future where financial services are more inclusive, innovative, and securely integrated into our daily lives,\u201d King said.
\nThe post UK’s Open Banking Milestone: What 10 Million Users Mean for UK\u2019s Financial Services Future appeared first on PYMNTS.com.
\n", "content_text": "While open banking starts to gain traction in the U.S., across the pond the banking and payments sector is celebrating milestones. Last week it celebrated ten million active users. Is that a good number? Consider two facts before you answer. One: Ten million users is 15% of the entire U.K. population. If 15% of the U.S. population was using open banking, that would be about 50 million users. Two: Just 18 months ago that U.K. number was only six million open banking users. \nSo, is ten million a good number? PYMNTS put the question to Marion King, chairperson and trustee of the U.K.\u2019s Open Banking Ltd regulatory and advocacy group. And while she\u2019s certainly not resting on any laurels, she\u2019s satisfied that the government-mandated direction from the country\u2019s top-tier financial institutions to make data sharing and new payment options available will lead to more success in the short term. Part of that momentum, she told PYMNTS, will come from the next tier of banks and their business customers. \n\u201cIt\u2019s a very good number,\u201d King said. \u201cWe\u2019re seeing really strong double-digit growth. And I think this is just the beginning, because you need to remember that this is only measured from the nine banks that were involved in the Competition and Market Authority\u2019s initial open banking effort \u2014 so it could actually be higher. So double digit growth month on month is very positive, and I think it shows pent-up demand for secure data exchange as we move forward with all of this.\u201d\nMoving forward from the 10 million-user milestone started at a \u201cStrategy Summit\u201d on July 26 with several analysts, banks, neobanks and government regulatory agencies. At that meeting Andy Sacre, head of payments for U.K. neobank Monzo, told the audience that around six million of Monzo\u2019s customers have used open banking \u2014 sharing their data to get better credit card rates, paying their tax bill, or connecting other bank accounts to their Monzo app so they can see everything in one place. Those are just some of the use cases King believes have made open banking in the U.K. a viable commercial proposition. \n\u201cOne of the biggest use cases we have is the ability for people to pay their tax bills through their bank account without sharing any account details,\u201d King said. This feature bypasses traditional card systems, offering a secure and direct payment method. The U.K.\u2019s HM Revenue and Custom\u2019s agency (its version of the IRS) collected over \u00a33 billion at the beginning of the year from tax returns using this method.\nAnother significant application is in the SMB sector, where open banking facilitates the integration of accounting packages, minimizing manual systems and supporting real-time cash flow management. King also pointed out the not-for-profit sector is also benefiting, with organizations like Salad Money leveraging open banking to offer secure loans to those traditionally underserved by the banking system.\nLooking Across the Pond\nIn the U.S. companies like Trustly are moving open banking forward, as are Visa and Mastercard with their API strategies. A PYMNTS Intelligence report, produced in conjunction with Trustly, found that nearly half of U.S. respondents are highly willing to use open banking\u00a0for at least one type of expense, including monthly bills, groceries or subscriptions.\u00a0Despite high interest in this method, it comes in third place behind paying via manual input of their account and routing numbers and using bill pay services offered by their banks. The study found open banking providers must confront an awareness gap: 44% of non-users said they were not familiar with the payment method.\nLooking across the Atlantic, King suggested four cornerstone strategies to catalyze open banking in the U.S.:\n1. Regulatory Framework: Compel data sharing among financial institutions to ensure participation and ecosystem viability.\n2. Economic Model: Develop a model that makes data access economically sustainable, ensuring it supports innovation and compensates data providers appropriately.\n3. Technical and Data Standards: Establish uniform standards to maintain service quality and reliability.\n4. Broad Participation: Encourage wide participation across financial entities to enhance service accessibility and utility.\n\u201cThese elements are crucial for creating a thriving open banking environment that benefits all stakeholders,\u201d King said.\nBut while 10 million is a good number, the U.K.\u2019s roadmap to expand open banking usage to 20 million revolves around increasing participation across the economy and launching innovative payment methods like variable recurring payments. VRPs, by Open Banking U.K.\u2019s definition, are payments that let customers safely connect authorized payments providers to their bank accounts so that they can make payments on the customer\u2019s behalf, in line with agreed limits. VRPs offer more control and transparency than existing alternatives such as Direct Debit payments.\n\u201cThese enhancements put more control into the hands of consumers, aligning with our goals of transparency and user empowerment,\u201d King said.\nKing is optimistic about the role of Big Tech in open banking, citing Apple\u2019s integration of open banking features in the U.K. as a pioneering example. \u201cBig Tech\u2019s engagement will significantly boost user volumes, provided we maintain a strong commercial framework,\u201d she noted.\nAs for ongoing challenges, King emphasizes the importance of continuous attention to fraud prevention and consumer protection, ensuring that as user numbers grow, the system remains secure and trustworthy.\n\u201cIt’s not just about financial services, it\u2019s about fostering a data-sharing economy that benefits everyone. The U.K.\u2019s approach, combining mandated participation with voluntary contributions, creates a model that others, including the U.S., could learn from,\u201d King said. \nShe also mentioned the support from the new Labour government in the U.K., expressing optimism about their enthusiasm for open banking and the broader implications of data-sharing policies. King highlighted that the Labour Party has already initiated a standalone bill for smart data and digital identity, which includes open banking, demonstrating their commitment to advancing these initiatives. \nWith government support and strategic industry collaboration, King is confident that open banking in the U.K. will not only reach but potentially exceed the 20 million user milestone. \u201cWe\u2019re setting the foundation for a future where financial services are more inclusive, innovative, and securely integrated into our daily lives,\u201d King said. \nThe post UK’s Open Banking Milestone: What 10 Million Users Mean for UK\u2019s Financial Services Future appeared first on PYMNTS.com.", "date_published": "2024-07-29T04:00:21-04:00", "date_modified": "2024-07-28T23:03:19-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/open-banking-UK.jpg", "tags": [ "EMEA", "Featured News", "international", "Marion King", "News", "Open Banking", "PYMNTS News", "U.K.", "United Kingdom", "Banking" ] } ] }