FinovateFall Sneak Peek: UBDI

https://finovate.com/finovatefall-sneak-peek-ubdi/

A look at the companies demoing live at FinovateFall on September 23 through 25, 2019 in New York City. Register today and save your spot.

UBDI (short for Universal Basic Data Income) is reinventing financial and market research by empowering individuals to monetize aggregated, anonymized insights from their data.

Features

  • Provides aggregated, anonymized historical and real-time data points combined with qualitative data from paid users
  • Reaches the perfect audience with PrivateMatch Technology
  • Represents the gold standard of GDPR/CCPA compliance

Why it’s great
Data and privacy can work together for richer insights when you empower the individual with their own data.

Presenters

Dana Budzyn, CEO and Co-Founder
Budzyn is an engineer and published researcher with NASA for her work in Optics and Photonics technology. Watch her TEDx “Owning Your Digital Self: Monetizing Your Personal Data.”
LinkedIn

Shane Green, Executive Chair and Co-Founder
In addition to being Founder/Chair of UBDI, Green is also the U.S. CEO of personal data platform digi.me (following the merger with Personal in 2017 where he was founder/CEO). Green also founded The Map Network, which was acquired by Nokia/NAVTEQ.
LinkedIn.

https://finovate.com/finovatefall-sneak-peek-ubdi/

FinovateFall Sneak Peek: myGini

https://finovate.com/finovatefall-sneak-peek-mygini/

A look at the companies demoing live at FinovateFall on September 23 through 25, 2019 in New York City. Register today and save your spot.

myGini is a customizable, AI-powered, plug-and-play card loyalty and customer engagement solution for financial institutions and retailers to drive incremental volume and sales.

Features

  • Digital and customizable customer engagement with each card transaction
  • Ability to create unique and segmented promotions
  • Point redemption and cash back in real time

Why it’s great
myGini is a financial app that brings tangible benefits and interacts with the consumer at the right time.

Presenter

Mehmet Sezgin, Founder and CEO
Sezgin is former Global Head of Payments at BBVA and former CEO and founder of Garanti Payments. He has served as a board member for MasterCard Europe for 14 years.
LinkedIn

https://finovate.com/finovatefall-sneak-peek-mygini/

FinovateFall Sneak Peek: CheckAlt

https://finovate.com/finovatefall-sneak-peek-checkalt/

A look at the companies demoing live at FinovateFall on September 23 through 25, 2019 in New York City. Register today and save your spot.

LoanPay from CheckAlt enables financial institutions to accept check, eCheck, and card payments for various loans such as consumer loans, auto loans, mortgages, HELOCs, and credit cards.

Features

  • Financial institution core agnostic
  • Fully mobile responsive for consumers
  • Provides omnichannel experience for consumers and back office

Why it’s great
LoanPay enables financial institutions to accept payments across all channels including in-person, through a call center, and online, for all loan types.

Presenters

Bobby Rahmanian, Chief Product and Innovation Officer
Rahmanian brings more than 23 years of experience in product, payments, business operations, and technology to CheckAlt. He is spearheading the transformation of LoanPay.
LinkedIn

Stacey Bryant, Senior Executive, Credit Unions
Bryant brings 15-plus years of operational oversight and business development expertise in the credit union industry to CheckAlt.
LinkedIn

https://finovate.com/finovatefall-sneak-peek-checkalt/

FinovateFall Sneak Peek: Buckzy Payments

https://finovate.com/finovatefall-sneak-peek-buckzy-payments/

A look at the companies demoing live at FinovateFall on September 23 through 25, 2019 in New York City. Register today and save your spot.

Buckzy is an enabler of banks and financial institutions. The company is fundamentally transforming the way people move money around the world with its real-time cross-border payments ecosystem.

Features

  • Real-time cross-border payments ecosystem
  • Availability 365 days a year
  • 24/7 access even inside of traditional banking hours and holidays

Why it’s great
Cross-border P2P payments, bill payments, global trade payments, and international student payments can now be settled in real-time with 365 days, 24×7 accessibility to funds.

Presenter

Lindsay Mulligan, Global Chief Marketing Officer
Mulligan is a global marketer, innovator, and digital martech strategist with over 12 years of experience in marketing multinational brands on a global scale for both B2B and B2C initiatives.
LinkedIn

https://finovate.com/finovatefall-sneak-peek-buckzy-payments/

FinovateFall Sneak Peek: MX

https://finovate.com/finovatefall-sneak-peek-mx/

A look at the companies demoing live at FinovateFall on September 23 through 25, 2019 in New York City. Register today and save your spot.

MX is the leading data platform for banks, credit unions, and fintechs, empowering customers to easily collect, enhance, analyze, present, and act on financial data.

Features

MX Enabled is a centralized data platform that rapidly integrates amazing fintech companies to thousands of banks and credit unions creating faster time to market and reduced costs.

Why it’s great
MX Enabled connects fintechs and financial institutions to a world of innovation through enhanced data.

Presenters

Brandon DeWitt, CTO and Co-Founder
DeWitt is the co-Founder and CTO of MX. Prior to MX, he co-founded MyJibe, a personal financial management company, acquired by MX in 2012. DeWitt formerly worked at Baker Hill and Experian.
LinkedIn.

Cosme Salazar, Product General Manager
Salazar is a Product General Manager over APIs and the MX Enabled platform. He has worked in product management for over ten years including time at Instructure and Amazon.
LinkedIn.

https://finovate.com/finovatefall-sneak-peek-mx/

FinovateFall Sneak Peek: Zogo Finance

https://finovate.com/finovatefall-sneak-peek-zogo-finance/

A look at the companies demoing live at FinovateFall on September 23 through 25, 2019 in New York City. Register today and save your spot.

Zogo Finance offers a white-labeled, financial education app that rewards cash incentives to users for learning.

Features

  • Bite-sized modules
  • Embedded rewards system
  • Lead generation

Why it’s great
Get paid to learn financial literacy.

Presenter

Bolun Li, CEO
Li is a 20 years old serial entrepreneur and was awarded 30 under 30 in 2018 for his previous startup.
LinkedIn

https://finovate.com/finovatefall-sneak-peek-zogo-finance/

FinovateFall Sneak Peek: Ninth Wave

https://finovate.com/finovatefall-sneak-peek-ninth-wave/

A look at the companies demoing live at FinovateFall on September 23 through 25, 2019 in New York City. Register today and save your spot.

Ninth Wave is the go-to partner for universal financial data integration, delivering a secure, seamless, and standardized information supply chain.

Features

  • Enable connectivity between banks and third parties
  • Quickly provision secure connectivity to business and consumer apps
  • Highlight new ways for banks to improve customer experiences

Why it’s great
Ninth Wave is excited to show FinovateFall attendees how easily it can enable financial institutions to provide a world-class app experience to SMBs and consumers.

Presenters

George Anderson, Founder
Under Anderson’s leadership companies have garnered honors such as Deloitte and Touche Fast 50, FinTech 100, and Software 500.
LinkedIn

Camellia George, Product Manager, UX/Privacy
Before joining the front lines of financial data access and control, George led teams at Venmo, Fab.com and WaPo.
LinkedIn

https://finovate.com/finovatefall-sneak-peek-ninth-wave/

FinovateFall Sneak Peek: Mylife

https://finovate.com/finovatefall-sneak-peek-mylife/

A look at the companies demoing live at FinovateFall on September 23 through 25, 2019 in New York City. Register today and save your spot.

Mylife is the leading provider of consumer reputation data including the new consumer reputation score.

Features

  • Assesses publicly available data to score consumer character
  • Enables consumers to take action to improve their score
  • Establishes trust in others based on their score

Why it’s great
The consumer reputation score is new and being rolled out widely to enable trust and safety in online interactions between consumers

Presenters

Mark Kapczynski, SVP, Partnerships
Kapczynski is the former VP of strategy at Experian and head of strategy for Yodlee’s data and analytics business.
LinkedIn

Tim Peters, VP, Partnerships
Peters is the former head of digital acquisition at Experian for FreeCreditReport.com along with several additional fintech companies.
LinkedIn

https://finovate.com/finovatefall-sneak-peek-mylife/

Aligning with ‘leaders’: OakNorth’s Nooriala on its partnership strategy

https://bankinnovation.net/allposts/biz-lines/lending/aligning-with-leaders-oaknorths-nooriala-on-its-partnership-strategy/

In a bid to grow its customer base, OakNorth Bank is partnering with Smarterly, a workplace savings and investment platform, the company announced this week. Smarterly is the first employer financial platform with which OakNorth has partnered, building on tie-ups with Monzo and Moneybox earlier this year.

The U.K.-based digital-only bank is aligning with other fintech companies to extend its reach, but the company is careful in its choice of partners, according to Amir Nooriala, chief strategy officer at OakNorth. With Smarterly, OakNorth can access more customers and integrate its offerings.

“As part of a diversification strategy, we decided to explore the possibility of partnering with other people,” said Nooriala. “The next segment we wanted to target was workplace providers; we think that’s a really interesting play in terms of hitting a lot of people at once. With workplace providers, each of companies [on Smarterly] have tens of thousands of employees.”

Smarterly, according to OakNorth, was seen as a leader among workplace financial health platforms and a good candidate for a partnership given its tie-ups with workplace loan providers Salary Finance and Neyber. Nooriala noted that the Smarterly partnership is more than just business-to-business because it also allows OakNorth to connect to companies that are partners of Smarterly. By working with OakNorth, Smarterly will offer its customers a range of savings options to suit their short- and longer-term savings plans, and it opens the door to “further product development,” Smarterly CEO Ben Pollard said in a statement.

See also: Inside the US expansion plans of OakNorth, an aspiring ‘Bloomberg of SME lending’

While the partnerships extend OakNorth’s customer reach, Nooriala emphasized that the objective of the strategy isn’t to maximize the number of partnerships. Rather, OakNorth seeks to find a select number of “leaders” in various areas of the market. For instance, with Monzo, OakNorth gains a customer base who tend to have lower savings account balances, while Moneybox clients typically have higher balances.

“What we like to do is not dilute our brand and partner with everyone,” said Nooriala. “We prefer to identify who we think are the market leaders and, through the power of our brand, come up with a mutually beneficial partnership. We’re going to continue going through the different categories of fintech services out there.”

In addition to customer reach, with the Smarterly partnership, the bank also stands to gain from diversification of funding sources. “We believe in not distracting ourselves from our core business, which is lending. Instead of us figuring out how to attract all the various different saving demographics out there, we prefer to partner with someone who’s already acquired the same savers,” said Nooriala. “It’s saving us from having to be experts in every single group within the market as a whole, and we can just concentrate on being the go-to fintech provider of savings for the market.”

OakNorth, which currently is valued at $2.8 billion, so far has raised $848 million in primary funding since its creation, including $440 million from SoftBank’s Vision Fund and the Clermont Group in February.

Bank Innovation Build, on Nov. 6-7 in Atlanta, helps attendees understand how to “do” innovation better. It is designed to offer best practices, to guide the innovation professional to better results. Register here and save with early bird rates ending September 27th.

https://bankinnovation.net/allposts/biz-lines/lending/aligning-with-leaders-oaknorths-nooriala-on-its-partnership-strategy/

Dunkin' expands mobile On-the-Go ordering to all customers

https://www.mobilepaymentstoday.com/news/dunkin-expands-mobile-on-the-go-ordering-to-all-customers/

Dunkin' expands mobile On-the-Go ordering to all customers

Photo: iStock

Dunkin’ now announced that all customers can use its app’s On-The-Go mobile ordering feature, previously only available to loyalty club and gift card holders. Through the feature, diners can order on the app and pick-up in-store or at the drive-thru, a news release said. 

Customers can choose the ‘Guest Order’ button on the redesigned Dunkin’ App home screen, select their menu items and pay using debit or credit card, though Dunkin’ said other payment options will come later this year. 

The On-The-Go Guest Order feature has started rolling out as part of a Dunkin’ App update, which also includes a fresh design and what the company said is a streamlined user experience. DD Perks members can still track and earn rewards points, view current offers, redeem for free beverages and more.

Beginning in October, Dunkin’ will also be giving DD Perks members the ability to earn points for every eligible purchase no matter how they pay, including cash, credit, debit or a Dunkin’ gift card. To earn points with purchases, guests should have their Dunkin’ App DD Perks loyalty ID QR code scanned before they pay and points earned, as well as the point balance will show on the receipt.

Dunkin’ currently has more than 12 million members in its DD Perks Rewards Program that awards five points for every dollar spent on qualifying purchases at Dunkin’. Members get a free drink reward coupon at 200 points. Dunkin’ now has more than 12,900 restaurants in 42 countries worldwide. 
 


Topics: Loyalty Programs, Mobile Apps, Mobile Payments, Online Purchasing, POS, Restaurants


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https://www.mobilepaymentstoday.com/news/dunkin-expands-mobile-on-the-go-ordering-to-all-customers/

Weekly Wrap: Revolut rolls out Gen Z account, as UnionPay expands globally

https://bankinnovation.net/allposts/biz-lines/payments/weekly-wrap-revolut-rolls-out-gen-z-account-as-unionpay-expands-globally/

Welcome to the latest episode of our weekly wrap video series, for the week ending Friday, September 20, 2019. In this episode, Suman Bhattacharyya, deputy editor of Bank Innovation, discusses the following news developments: Revolut’s launch of an account for customers under 18; China UnionPay’s latest move in its battle against global competitors, including Mastercard …Read More

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https://bankinnovation.net/allposts/biz-lines/payments/weekly-wrap-revolut-rolls-out-gen-z-account-as-unionpay-expands-globally/

Cross River CEO: ‘High-profile fintech folks’ interested in its real-time payments rollout

https://bankinnovation.net/allposts/biz-lines/payments/cross-river-ceo-high-profile-fintech-folks-interested-in-its-real-time-payments-rollout/

Cross River Bank, the partner bank for large fintech startups like Stripe and Affirm, is using The Clearing House’s real-time payments (RTP) network to enhance service to clients and boost its value proposition to future ones.

Gilles Gade, Cross River Bank CEO

According to Cross River Bank CEO Gilles Gade, real-time payments will prove attractive to financial startups in third-party payments, cryptocurrencies and marketplace lenders. “There’s a whole industry in the payment space that we’re catering to, and they are thirsty for new products and services,” Gade said. “The onboarding process at the big banks is very lengthy with a lot of obstacles, and it’s not certain. With us, we’re trying to streamline that process and make it easy.” 

Companies using Cross River’s banking services can use the RTP network to send, clear and settle payments within seconds, and they can send real-time payments 24 hours a day, seven days a week. The service also allows companies to message customers in real time for invoices and bills.

According to Gade, the real-time payments are attractive to any company that needs to move money on behalf of customers. Although he couldn’t give any specifics, he noted that some “high-profile fintech folks” have approached Cross River Bank about the service. Without the RTP network, customers would have to use ACH payments, which generally don’t clear until the next business day.  

See also: Cross River Bank acquires business-banking platform Seed

The Fort Lee, N.J.-based bank was founded in 2008, and it strives to be a full-service sponsor bank of financial startups. In addition to Stripe and Affirm, its client list includes big names like Coinbase. In June, the company acquired the small business banking provider Seed to expand its offerings and expertise. 

The Clearing House is the only private ACH and wire company in the U.S. Founded in 1853, it is owned by 24 different financial institutions, including Bank of America, JPMorgan Chase and Citibank, and settles $2 trillion every day. Any bank that is federally insured can join the RTP network.

In the past, The Clearing House told Bank Innovation that it was trying to have all banks on RTP by 2020. However, the Federal Reserve announced in August its own plans to launch real-time payments service FedNow, which is something The Clearing House has said could stymie that plan.

Join Gilles Gade and other innovation leaders at Bank Innovation Build, on Nov. 6-7 in Atlanta, an event that focuses on how to “do” innovation better. It is designed to offer best practices, to guide the innovation professional to better results. Register here and save with early bird rates ending September 27th

https://bankinnovation.net/allposts/biz-lines/payments/cross-river-ceo-high-profile-fintech-folks-interested-in-its-real-time-payments-rollout/

Goldman shows bright future for banks, if not for bankers

https://bankinnovation.net/allposts/biz-lines/retail/goldman-shows-bright-future-for-banks-if-not-for-bankers/

(Bloomberg Opinion) — The continuing debate about the future of banking since the 2008 financial crisis has intensified recently on reports that banks are cutting jobs and slashing pay. While the outlook for bankers is precarious, the same can’t be said for the banks.

Goldman Sachs Group Inc. has featured prominently in the chatter about cutbacks, and not just because of its preeminence among U.S. banks. As Bloomberg News reported on Monday, Goldman’s compensation per employee plummeted 61% from 2007 to 2018 after adjusting for wage growth during the period, the largest decline among 12 big U.S. and European banks Bloomberg analyzed. Apparently, few at Goldman were spared a pay cut. Chief Executive Officer David Solomon was paid $23 million last year, a third of what former CEO Lloyd Blankfein was paid in 2007.

Pay isn’t the only thing declining at Goldman. Reports also surfaced on Monday that Chief Risk Officer Robin Vince is leaving, the latest in a long line of senior departures. The Wall Street Journal reported earlier this month that up to 15% of Goldman’s partners may depart in 2019, far higher turnover than normal, even as Goldman named its smallest class of partners in two decades last year.

The problem, according to Odeon Capital analyst Dick Bove, is that the “Fourth Industrial Revolution” — the widespread fear that robots will replace human workers — is already encroaching on trading and investment management, two key divisions at many big banks, including Goldman. Upstart financial firms are leveraging technology to offer those and other services at a lower cost, luring clients from incumbents such as Goldman and pressuring them to lower fees.

Suffice it to say, big banks can’t continue to carry an army of well-paid bankers while tech-savvy competitors undercut their fees. Goldman spent roughly $12.3 billion on compensation and benefits in 2018, more than half of its total operating expenses, and just $1 billion on communications and technology, which is typical of Wall Street banks.

Meanwhile, trading revenue at the five biggest U.S. banks on Wall Street shrank 8% last quarter after declining 14% in the first. In response to its own trading slump, Citigroup Inc. is preparing to cut hundreds of trading jobs this year, and it’s almost certainly not alone. “The rest of Wall Street is thinking the same way,” Jeff Harte, an analyst at Sandler O’Neill, told Bloomberg News in July.

The big banks have little choice but to deploy robots of their own. Goldman bought financial adviser United Capital earlier this year, in part to acquire its digital platform FinLife CX. That followed its acquisition of personal finance app Clarity Money last year, now part of Goldman’s online bank Marcus. Merrill Lynch, once the archetypal high-touch brokerage firm, introduced an online discount broker in 2016 and a robo-adviser soon after. JPMorgan Chase introduced similar services recently.

The move to automation is obviously bad for rank-and-file bankers, but it’s no better for their bosses because a smaller headcount requires fewer managers. So it makes sense that Goldman is culling its upper ranks. Solomon says that shrinking the number of partners is meant to restore “the aspirational nature of the partnership,” which is probably a gentle reminder that the firm no longer needs many of its nearly 500 partners.

What’s bad for bankers, however, is likely to be a boon for shareholders. Big banks are transforming into vast technology platforms overseen by a smaller core of executives and business generators. Solomon appears to acknowledge as much by aiming to keep the partner ranks weighted toward rainmakers, according to the Journal, a role that the bots can’t play. The horde of midlevel bankers will undoubtedly be thinned, too, and some of them replaced with lower-paid programmers and engineers. Automation is likely to make banks more profitable, even as fees for their services continue to decline.

The big banks also have little to fear from upstarts. Technology becomes cheaper and more widely available over time, but brand and distribution is enduring and difficult to attain. That gives Goldman and its peers a considerable edge. Remember NetBank and Bank of Internet USA? They were online banks that threatened to dethrone brick-and-mortar ones during the dot-com boom of the late 1990s. But once they demonstrated that online banking was the future, big banks rushed to offer similar services and cornered the market before the newcomers could gain traction. A similar story is unfolding with online trading, lending and money management.

Banks Are Back

There are signs that the changes underway at financial firms are already paying off. Net income margin, or earnings as a percentage of revenue, for the S&P 500 Financials Index jumped to 17.5% in 2018 from an average of 12.4% from 2009 to 2017. It’s expected to climb to 18% this year, nearly matching the previous high of 18.8% in 2006. Return on capital was the highest on record in 2018 and is expected to grow again this year.

The future of banking may not be bright for bankers, but it’s likely to be more lucrative for banks and their shareholders.

The opinion piece was written by Nir Kaissar of Bloomberg News.

https://bankinnovation.net/allposts/biz-lines/retail/goldman-shows-bright-future-for-banks-if-not-for-bankers/

Banks struggling to maintain profits amid payments transformation: Study

https://www.mobilepaymentstoday.com/articles/banks-struggling-to-maintain-profits-amid-payments-transformation-study/

New research from Aite Group shows that a majority of banks are struggling to make a profit through their payments businesses and warns that some institutions will have to make significant changes in order to run the business more efficiently.

The report, called “Payments Transformation Race: Criteria for Success,” shows that 65% of banks are having difficulty making a profit on payments and shows the cost of new infrastructure is forcing banks to make internal process changes in order to turn a profit on payments. 

“Banks will need to deliver value added services to recoup payments revenue,” Toine va Beusecom, head of payments at Icon Solutions, which commissioned the story, said via email. “Whether they do this on their own or by partnerships will ultimately come down to margins.”

The report examines the journey that the banking industry is going through, primarily in the transition in the corporate payments space to a real-time payments environment. The report examines the changes required in how many of the world’s leading banks are forced to transition their internal systems to operate in a modern digital environment where real-time payment capabilities are required.

According to the report, 80% of banks reported that payments were becoming less profitable and only 18% of banks were able to charge the amount that they wanted for those payments. 

The total cost of ownership to create the infrastructure for faster payment systems has been increasing overall and has forced banks to streamline costs for back-end systems by using cloud-based or open source systems to create more cost-effective platforms. 

“Evidence indicates that traditional revenue models of payments are starting to shift — operating sub-profit is simply not viable long-term,” Erica Baumann, senior research analyst, wholesale banking and payment at Aite Group, said in a press release. “Fifteen percent of top tier banks around the globe have already moved to data driven models and others are following suit.”

The study comes at a time of significant changes in the global banking industry with a shift towards faster payments. The Federal Reserve just last month announced plans to implement the FedNow system, which would create a real-time payments infrastructure in the U.S. 

The study is based on a survey of 22 leading banks around the globe, including from the U.S., Canada, Asia and Europe. 

Cover image courtesy of iStock.

https://www.mobilepaymentstoday.com/articles/banks-struggling-to-maintain-profits-amid-payments-transformation-study/

Dunkin' expands mobiile On-the-Go ordering to all customers

https://www.mobilepaymentstoday.com/news/dunkin-expands-mobiile-on-the-go-ordering-to-all-customers/

Dunkin' expands mobiile On-the-Go ordering to all customers

Photo: iStock

Dunkin’ now announced that all customers can use its app’s On-The-Go mobile ordering feature, previously only available to loyalty club and gift card holders. Through the feature, diners can order on the app and pick-up in-store or at the drive-thru, a news release said. 

Customers can choose the ‘Guest Order’ button on the redesigned Dunkin’ App home screen, select their menu items and pay using debit or credit card, though Dunkin’ said other payment options will come later this year. 

The On-The-Go Guest Order feature has started rolling out as part of a Dunkin’ App update, which also includes a fresh design and what the company said is a streamlined user experience. DD Perks members can still track and earn rewards points, view current offers, redeem for free beverages and more.

Beginning in October, Dunkin’ will also be giving DD Perks members the ability to earn points for every eligible purchase no matter how they pay, including cash, credit, debit or a Dunkin’ gift card. To earn points with purchases, guests should have their Dunkin’ App DD Perks loyalty ID QR code scanned before they pay and points earned, as well as the point balance will show on the receipt.

Dunkin’ currently has more than 12 million members in its DD Perks Rewards Program that awards five points for every dollar spent on qualifying purchases at Dunkin’. Members get a free drink reward coupon at 200 points. Dunkin’ now has more than 12,900 restaurants in 42 countries worldwide. 
 


Topics: Loyalty Programs, Mobile Apps, Mobile Payments, Online Purchasing, POS, Restaurants


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https://www.mobilepaymentstoday.com/news/dunkin-expands-mobiile-on-the-go-ordering-to-all-customers/

Commerzbank plans to shed 2,300 jobs, shut 200 branches in mobile restructuring

https://www.mobilepaymentstoday.com/news/commerzbank-plans-to-shed-2300-jobs-shut-200-branches-in-mobile-restructuring/

Commerzbank plans to shed 2,300 jobs, shut 200 branches in mobile restructuring

Commerzbank announced a $1.76 billion (1.6 billion euro) restructuring, where it will slash 2,300 net jobs and shut 200 branches as it moves to expand its use of mobile banking, in a company release. 

The bank said it may also merge its Comdirect bank into the main Commerzbank financial institution, however, the branch bank will remain a “pillar” of the overall business. 

The restructuring would entail slashing 4,300 jobs and hiring another 2,000 jobs in strategic  areas. The bank would have about 800 physical branches remaining in Germany.

The plan also calls for the sale of its Polish unit, mBank S.A.

The restructuring envisions the bank reporting higher revenue and more customers by the year 2023. 

Cover image courtesy of iStock.


Topics: Mobile Banking, Region: EMEA


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https://www.mobilepaymentstoday.com/news/commerzbank-plans-to-shed-2300-jobs-shut-200-branches-in-mobile-restructuring/

Paypal tests extended promotional financing in pilot with Synchrony

https://www.mobilepaymentstoday.com/news/paypal-tests-extended-promotional-financing-in-pilot-with-synchrony/

Paypal tests extended promotional financing in pilot with Synchrony

Paypal Credit is testing promotional financing of 3-Month Easy Payments at 0% APR for purchases as low as $30 for the first time under a partnership with Synchrony Bank. 

Retailers will be able to offer the promotional financing to customers, which requires no down payment. The retailer will be paid upfront as well.

“Paypal Credit has created a culture of empowered shoppers,” Susan Schmidt, vice president of U.S. consumer credit at Paypal, said in a company release. “Shoppers do not need to apply for a new credit line each time they use Paypal Credit, they only need to apply once.” 


Topics: In-App Payments, Mobile Payments, POS, Retail

Companies: PayPal


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https://www.mobilepaymentstoday.com/news/paypal-tests-extended-promotional-financing-in-pilot-with-synchrony/

Aussie POS financing firm Splitit names new CEO in shakeup of top leadership

https://www.mobilepaymentstoday.com/news/aussie-pos-financing-firm-splitit-names-new-ceo-in-shakeup-of-top-leadership/

Aussie POS financing firm Splitit names new CEO in shakeup of top leadership

Brad Peterson, managing director North America at Splitit, will become the new CEO Oct. 1

Splitit Payments Ltd., an Australian firm that provides short-term installment financing at the point of sale, has named Brad Peterson, former managing director North America, as its CEO, effective Oct. 1. 

He’s replacing co-founder and CEO Gil Don, who will step down from his leadership position to become general manager Europe Middle East Africa, according to a comapny press release.

Paterson originally joined Splitit in June after 20 years as an executive with several software and fintech companies, including Intuit and PayPal. 

“Brad has already made a significant contribution since joining the business,” Spiro Pappas, chairman of Splitit, said in a company release. “With his experience helping build and scale well known companies in the payments industry, we always considered him a potential successor to Gil.”

Don founded Splitit in 2009, along with Alon Felt, chief risk officer of the company, and another director of the firm. Don became CEO in 2015, and led the company through its listing on the Australian Stock Exchange in January. 

Cover image: Splitit

.


Topics: Mobile Payments, POS, Region: APAC, Retail


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Synthetic Data Can Conquer FinServ’s Fear of Data Security and Privacy

https://finovate.com/synthetic-data-can-conquer-finservs-fear-of-data-security-and-privacy/

This is a sponsored blog post by Randy Koch, CEO of ARM Insight, a financial data technology company based in Portland, Oregon. Here, he explores what synthetic data is, and why financial institutions should start taking note.

You’ve heard it before – data is invaluable. The more data your company possesses the more innovation and insights you can bring to your customers, partners and solutions. But financial services organizations, which handle extremely sensitive card data and personally identifiable information (PII), face a difficult data management challenge. These organizations have to navigate how to use their data as an asset to increase efficiencies or reduce operational costs, all while maintaining privacy and security protocols necessary to comply with stringent industry regulations like the Payment Card Industry Data Security Standard (PCI DSS) and the General Data Protection Regulation (GDPR).

It’s a tall order.

We’ve found that by accurately finding and converting sensitive data into a revolutionary new category – synthetic data – financial services organizations can finally use sensitive data to maximize business and cutting-edge technologies, like artificial intelligence and machine learning solutions, without having to worry about compliance, security and privacy.

But first, let’s examine the traditional types of data categorizations and dissect why financial services organizations shouldn’t rely on them to make data safe and usable.

Raw and Anonymous Data – High Security and Privacy Risk

The two most traditional types of data categorization types – raw and anonymous – come with pros and cons. With raw data, all the personally identifiable information (PII) fields for both the consumer (name, social security number, email, phone, etc.) and the associated transaction remain tagged to data. Raw data carries a considerable risk – and institutional regulations and customer terms and conditions mandate strict privacy standards for raw data management. If a hacker or an insider threat were to exfiltrate this type of data, the compliance violations and breach headlines would be dire. To use raw data widely across your organization borders on negligence – regardless of the security solutions you have in place.

And with anonymous data, PII is removed, but the real transaction data remains unchanged. It’s lower risk than raw data and used more often for both external and internal data activities. However, if a data breach occurs, it is very possible to reverse engineer anonymous data to reveal PII. The security, compliance and privacy risks still exist.

Enter A New Data Paradigm – Synthetic Data

Synthetic data is fundamentally new to the financial services industry. Synthetic data is the breakthrough data type that addresses privacy, compliance, reputational, and breach headline risks head-on. Synthetic data mimics real data while removing the identifiable characteristics of the customer, banking institution, and transaction. When properly synthesized, it cannot be reverse engineered, yet it retains all the statistical value of the original data set. Minor and random field changes made to the original data set completely protect the consumer identity and transaction.

With synthetic data, financial institutions can freely use sensitive data to bolster product or service development with virtually zero risks. Organizations that use synthetic data can truly dig down in analytics, including spending for small business users, customer segmentation for marketing, fraud detection trends, or customer loan likelihood, to name just a few applications. Additonally, synthetic data can safely rev up machine learning and artificial intelligence engines with an influx of valuable data to innovate new products, reduce operational costs and produce new business insights.

Most importantly, synthetic data helps fortify internal security in the age of the data breach. Usually, the single largest data security risks for financial institutions is employee misuse or abuse of raw or anonymous data. Organizations can render misuse or abuse moot by using synthetic data.

An Untapped Opportunity

Compared to other industries, financial institutions haven’t jumped on the business opportunities that synthetic data enables. Healthcare technology companies use synthetic data modeled on actual cancer patient data to facilitate more accurate, comprehensive research. In scientific applications, volcanologists use synthetic data to reduce false positives for eruption predictions from 60 percent to 20 percent. And in technology, synthetic data is used for innovations such as removing blur in photos depicting motion and building more robust algorithms to streamline the training of self-driving automobiles.

Financial institutions should take cues from other major industries and consider leveraging synthetic data. This new data categorization type can help organizations effortlessly adhere to the highest security, privacy and compliance standards when transmitting, tracking and storing sensitive data. Industry revolutionaries have already started to recognize how invaluable synthetic data is to their business success, and we’re looking forward to seeing how this new data paradigm changes the financial services industry for the better.

https://finovate.com/synthetic-data-can-conquer-finservs-fear-of-data-security-and-privacy/

Nissan joins in-car payments race

http://www.paymenteye.com/2019/09/20/nissan-joins-in-car-payments-race/

Payments services providers and fintechs have unleashed a flurry of collaborative innovations over the course of the past decade in order to expand on the sector’s ever-evolving definition of contactless payments. Yet for all the advances PSPs have brought to market, the automotive applications of contactless payments have thus far remained relatively unexplored.

A series of inventive new partnerships is about to change that.

At the start of September, Nissan announced it had struck a“first-of-its-kind” deal with FLEETCOR to fit its new Brazilian models with contactless payment tags. These electronic RFID stickers are produced by FLEETCOR subsidiary Sem Parar, and will be factory installed in all Brazilian Nissans by the end of 2019.

Humberto Gómez, marketing director at Nissan Brazil, said the move reinforced the brand’s commitment to transforming its cars to make drivers’ lives easier – and bearing in mind that Nissan produces an estimated 50,000 new cars in Brazil every year and is expected to triple this output by 2022, that should mean a huge rise in uptake for Sem Parar’s rapidly expanding domestic contactless payments network of 5.5 million customers.

Launched in 2000, Sem Parar specialises in digital toll, parking and fuel payment solutions, and its extending network has grown over the last two decades to include all of Brazil’s highway tollbooths, over 1,300 car parks, 650 gas stations and 350 drive-throughs across 13 states.

In October 2018, the firm unveiled a partnership with McDonald’s that enables drive-through customers whose vehicles are fitted with an RFID tag to pay for their orders using voice activation. Drivers simply state to the drive-through staff they’re paying with Sem Parar, the transaction is recorded on the car’s payment tag using radio frequency identification and the amount is then added to the invoice that Sem Parar sends its users at the end of each month.

The same method can be applied at Shell petrol stations in Brazil – and all that new Nissan owners will need to do in order to take advantage of this contactless, voice-activated commerce functionality will be to register their Sem Parar tag online. Customers who opt to activate the service will then be offered 12 months of the tiered service for free.

Nissan’s new partnership with FLEETCOR definitely qualifies as pioneering, and it’s by far the biggest market advancement in contactless payments drivers have seen to date. Yet it’s worth pointing out this is not the only promising payments experiment taking place in the automotive sector in 2019.

In August, Commerzbank announced the first successful test of its blockchain-powered machine-to-machine payments system after completing a fully automated transaction between an electric charging point and a Daimler truck system. For the transaction, Commerzbank issued Euros on a blockchain and gave Daimler “cash on ledger” in a company smart wallet to process the payment – demonstrating the system’s ability to settle mutual payments without any human intervention whatsoever.

Meanwhile, British manufacturer Jaguar Land Rover is effectively looking to combine both of these concepts after announcing the launch of testing on a crypto ‘earn-as-you-drive’ scheme that will see Jaguar owners credited with cryptocurrency in exchange for sharing information about traffic jams and potholes with other Jaguar owners on the company’s new drivers’ network. Those credits will then be collected in a car-linked smart wallet that can subsequently be used to claim back rewards like coffee, petrol, pay tolls or use charging points.

While smaller manufacturers are likely going to be awaiting the results of these tests before investing in their own payments infrastructure, there is a certain inevitability around the expansion of automotive payments. According to P97 Network’s Digital Drive Report 2019, more than half of all commuters already pay for items on the road while using an app, paving the way for this latest wave of in-vehicle payment tests to converge into a $37 billion industry in the US alone by 2023.

The market is definitely moving – and if industry forecasts turn out to be on par, the automotive industry could be the stage for a massive payments revolution in the medium term.

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http://www.paymenteye.com/2019/09/20/nissan-joins-in-car-payments-race/