SIBOS day 2 – What Europeans can learn from Australia’s Instant Payments experiences

Most payment experts believe that Instant Payments (IP) will become the primary payment method in the future. This is one of the conclusions of the Really a real-time reality session on day 2 of Sibos. During this session, NPP Australia, EBA Clearing and the ECB shared their IP experiences. This session came at a perfect time, as the pan-European infrastructure TARGET Instant Payment Settlement (TIPS) will be launched by the ECB in Europe next month.

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SIBOS day 2 – Darwin already knew: agility is key for survival, also for banks

According to Thomas Feiler, Head of Payments Product Management at equensWorldline, Charles Darwin predicted the fate of banks years ago, when he actually talked about the theory of biological evolution. “It is not the strongest species that survive, nor the most intelligent that survive. It is the ones that are most adaptable to change,” Darwin explained.

That is exactly the situation banks find themselves in, was the message of Feiler during his Open Theatre Session on the second day of Sibos. Agility is one of the key words for banks that want to become future-proof. To do so, the banking IT-systems have to change. Feiler explained in front of a packed room, where spectators even had to stand, what this means and how outsourcing can play an important role in the banks’ adoption of new digital platforms and value-added services.

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SIBOS day 1 makes clear: never again a dull moment in the world of payments

In the not too distant past, our industry was considered traditional, fixed and a bit dull, but anyone walking around the International Convention Centre in Sydney during Sibos this Monday knows that those times are far behind us. There will never again be a dull moment in the world of payments. This is illustrated by the presence of hundreds of booths representing the world’s biggest banks, fintechs and technology companies, all of which are ready to thrive in the world of payments. Read more

SIBOS day 1 – Open Banking requires radical changes

Banks should start from scratch when creating new business models rather than creating them step-by-step on top of their current business. Besides that, it is currently trendy to look at possibilities in the field of business to consumer, but especially in the field of corporate banking there is great potential. These were just a few interesting insights that were discussed during the packed panel session about the role of banks in the Open Banking era on the first day of Sibos 2018. Read more

Interesting times in the world of payments

In all fifteen years that I have worked in the world of payments, I have never seen a more interesting period than the past few years. Just think about it: in the past, banks led major developments in the payment industry, which usually lasted for decades. ATMs, for example, have existed for more than half a century.

Nowadays, with tech trends appearing so quickly, it is almost impossible to imagine a technical development that will be embraced and used for half a century. Furthermore, new trends are not always initiated by banks anymore. Fin- and bigtechs have joined the battle for the customer, partly as a result of PSD2 and Open Banking. Besides that, new technological possibilities, changing customer behaviour and globalisation are pushing us into a new payment era.

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‘Why are there no European companies competing in the battle for global payment solutions?’

Europe is largely dependent on non-European systems, such as PayPal, for cross-border (card) payments. The reason for this is that there is still no European payment system for the whole continent, partly because European banks mainly focus on serving their national markets. In the development of new payment services, this must change, says Yves Mersch, member of the Executive Board of the European Central Bank (ECB). Mersch explains why it is important that Europe is not reliant on non-European payment providers and why he hopes that in the future there will be a global payment solution coming from the eurozone.

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Why banks are gradually embracing PSD2, fintechs and Instant Payments

Banks closely monitor how technological innovations are rapidly disrupting the payments landscape. The introduction of Instant Payments, competition from fintechs and the PSD2 regulations continue to put the business models of banks under extreme pressure. Liz Oakes, Associate Partner at McKinsey & Company, explains why it is good that banks, partly under pressure from the PSD2, are increasingly seeking to co-operate with FinTech companies. She also explains how companies are discovering the power of Instant Payments.

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‘Going digital is not the goal, it’s just a tool’

Mobile first has been the philosophy of BNP Paribas, one of the largest banks in the eurozone, for two years now. Not that strange, because the number of French customers that visit the bank only via their smartphone has risen explosively in the past four years: from 175.000 to 1.2 million. Out of a total of almost 6.5 million customers in France, 3.2 million are now interacting at least once a month with the bank digitally (via web or mobile). Marc Campi, Digital Marketing Director at BNP talks about their digital strategy for the coming year.

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‘The fragmented payment landscape leads to more complexity and security concerns for consumers’

Five years ago, visiting a physical banking branch for cash or advice was a given. In a short time, however, mobile payment solutions have largely replaced these visits. Not just banks, but also third parties have created new mobile payment solutions, often in the form of apps and digital wallets. The result: multiple wallets and apps operated by various types of domestic and international entities are now competing against each other as well as banks. Niklas Killström, Head of Daily Banking, Product Management and Development at the Finnish OP Financial Group, gives his personal vision on why the customer is challenged by a fragmented European payment landscape. Read more

What did early adopter Nordea learn about opening up customer data?

Nordea was the first bank in the Nordics that stepped into the new world of Open Banking. The 200-year-old Nordic bank – which is headquartered in Finland since this month and has approximately eleven million customers – has been offering third parties access to real customer data since December 2017, after several pilot activities earlier that year. The result was an enormous amount of interest from external developers. Liisa Kanniainen, Senior Strategic Advisor at Nordea, explains why Nordea took the lead in the Open Banking era, why PSD2-compliance is not the only reason for change and how she and Nordea see the banking future.

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