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Four visions about the future of banks

Banks need to reinvent themselves now that the banking landscape is drastically changing. After all, fintech companies are continuously looking to attack profitable niches, developing their products from scratch using the latest technologies and an extreme focus on usability and fulfilling the wishes of the user. This differs from a lot of traditional banks that mainly focus on maintaining and integrating existing products into new channels.

In addition, current trends such as Open Banking, PSD2, Instant Payments and Digital Identity have a major impact on the traditional banks: the new legislations pave the way for new parties to enter the payments market and getting access to customers’ payment accounts. Furthermore the speed of payments is increasing, with receiving transactions going from one day to about ten seconds. These changes trigger the question what role banks will play in the future. Here are four visions about the future of banks, from members of both the financial establishment and the cutting edge. Read more

Large-scale exercise UNITAS in Frankfurt shows the importance of European collaboration in a crisis situation

Of course, every organisation aims to prevent a crisis from happening. But sometimes, an incident or crisis beyond our control, cannot be prevented. In that case organisations need to have a plan to continue business, or resume it, as soon as possible.

In order to improve business continuity and crisis communication at European level, the European Central Bank (ECB) organised a large-scale exercise at the end of June in Frankfurt, attended by the largest financial market infrastructures and their overseers from the euro area. Petra Steenbakker, senior policy officer at De Nederlandsche Bank (DNB), explains why business continuity management is so important, what the added value of European collaboration is and what conclusions she drew from the exercise in Frankfurt. Read more

Ready in time for Instant Payments by outsourcing the back-office processing engine

Doing it yourself, buying or outsourcing? These are the options for many banks when it comes to innovating their core processes, such as processing Instant Payments. In 2019, it must be possible to process these transactions real-time, but because these payments are made with a different scheme, they require an adaptation to the underlying payment infrastructure. “However, many banks have not yet adapted their payment infrastructure, which means they risk not being ready for the introduction of Instant Payments in time”, explains Erwin Vroege, expert at equensWorldline. “Outsourcing the back-office can help with this transition.”
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Five global indicators that we are heading towards a (nearly) cashless future

Coins and banknotes are rapidly losing ground. 2016 was the first year in which the amount of money spent with non-cash payments was higher than with cash payments, according to Euromonitor International. It is still uncertain whether we will ever completely eliminate cash. Several Swedish agencies, for example, have expressed doubts about this. Although the pace of transition varies from country to country, however, there are several signs that we are rapidly heading towards a nearly cashless society. Worldline has identified five indicators that point to a (nearly) cashless future. Read more

Is the world ready to say ‘good riddance’ to cash?

banknote-belt-bills-928184 (1)Although the use of cash varies between countries, there are signs that point to the possible end of banknotes and coins. In Sweden for example, for only 13 percent of payments cash is used. According to scientists at Stockholm’s Royal Institute of Technology – the largest and oldest technical university in Sweden – that percentage could work its way down to zero in less than five years. In South Korea the central bank has set a 2020 target to phase out coins. And in cities in the United Kingdom and the United States, the number of shops with signs that quote ‘no cash, please’ is increasing rapidly. Read more

‘The creation of financial systems is in the Baltics mainly driven by the younger generation’

ZandaWith the acquisition of First Data Baltics, Wordline has gained a leading financial processor in the Baltic States, which is one of the fastest growing economies within Europe. According to research carried out by the World Economic Forum Lithuania, Latvia and Estonia are all three in the top seven most innovative countries in Europe, with Estonia ranked first. And this particular region is the domestic market of new-born Worldline Baltics.

The Baltic countries are at the forefront of embracing new digital (payment) technologies. With the Baltics’ relatively small population of six million, it is fairly easy to be agile. The government also supports innovation, by keeping bureaucracy to a minimum and promoting entrepreneurship. For example, the Estonian government is already working on laws on the liability of robots and artificial intelligence.

We asked Zanda Brivule-Jansone, CEO of Worldline Baltics, about her and Worldline Baltics’ views on the trends and developments in the Baltic banking sector. Read more

Open banking requires enhanced security such as Strong Customer Authentication

hand-iphone-macro-40011In general, there are three factors to identify yourself when making an electronic payment: something that you know (such as a PIN code), something that you possess (such as a telephone) and something that you are (such as a physical characteristic). Under PSD2, the Regulatory Technical Standards (RTS) for Strong Customer Authentication (SCA) requires that one’s identity has to be verified with least two of these three independent options in order to perform a payment. What is SCA and why is it necessary for banks to enhance their security?

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More and more Europeans are ready to pay using wearable devices

apple-apple-watch-gadget-267391On the one hand, the spread of smartphones, wearable devices, and the Internet of Things, and on the other hand the development of mobile payment solutions and applications that are increasingly safe and reliable and above all usable: the innovation at the level of apps, mobile devices and mobile payments is impacting on the business models of the retail and banking world precisely because they are changing the habits of consumers who use these devices for business and pleasure.

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The great battle between banks and fintechs for the loyal customer

P2P payments blogDutch bank ABN AMRO announced its new record: one payment request per second was sent via Tikkie during Dutch national holiday ‘King’s Day’ on average. This record is not entirely surprising, as electronic peer-to-peer (P2P) payments have tripled since 2016. Fintechs and banks all over the world are keen to respond to this trend, which now seems to have become mainstream. A lot is happening  to provide consumers with the right applications so that they can transfer money to each other as quickly and easily as possible. But what has this competition led to? And what can consumers expect in the near future?  Read more

Five important steps to become a Third Party Provider following PSD2

TPP-WhitepaperWe know from our recent discussions with a wide range of market players that many would-be Third Party Providers (TPPs) feel uncertain about why they should become a TPP and if so, what they need to do to best prepare for PSD2, and about whom they can turn to for strategic, as well as technical, assistance. This blog post is a summary of a whitepaper that was specifically created for market players who intend to become a TPP. This whitepaper named ‘Time to get practical – a PSD2 whitepaper with a step-by-step preparation guide for TPPs’ is the second whitepaper on PSD2 that was created by Worldline and equensWorldline.

Despite numerous concerns, PSD2 primarily represents a unique strategic opportunity for would-be TPPs, including the banks, if only they have the courage and the innovative power to seize and unfold it. All types of companies can become a TPP if they so desire and as long as they fulfil the national requirements for TPP approval. This means that many different types of TPPs are expected in the market. Read more