Andrew Key

OBL has published Open Banking Standard v4.0 to assure future ecosystem growth. This is the first major release since 2018 and includes important mandatory updates to the security profile and widely recognized international messaging standards (ISO 20022). The release also includes optional updates to improve information flows (payment status and error messaging). Key changes in v4.0 Uplift from FAPI 1.0 Implements Draft 2 (to be fully deprecated by the end of 2024) to FAPI 1.0 Advanced Final – a mandatory implementation requirement. Key changes to align with ISO 20022, including fields required to meet Bank of England CHAPS requirements from 1 May 2025 – mandatory implementation requirement where marked. Improved information flows to facilitate provision of timely, definitive payment statuses and clear and consistent error messages – optional implementation requirement. https://lnkd.in/gpEnPxD4 Mahmoud AbuEbeid Biju Suresh-Babu Saleem Ahmed #payments #banking #data #openbanking #iso20022

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Are legacy payments holding your institution back? It's time to embrace modernisation and unlock new growth potential. Finteq is known as the leader in the evolution of modernised interoperable payment systems. In keeping with our ethos and drive to innovate at the rapid pace of the technology revolution, our systems must evolve ahead of anticipated changes, challenges, trends and developments. This has cemented Finteq as a trusted service in the banking industry. Our approach has not only streamlined local and international payment processes but, above all else, created an ecosystem of tight safety protocols, protecting our clients and end-users by predicting and delivering at the highest standard. #Fintech #Finance #BankingSolutions #PaymentProcessing #FinTechAfrica

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NEO BANKS – UK IS TYPICAL OF NEO BANK FAILURE Start-up banks are not new – there have been five groups since 1990. The latest are Neo banks usually founded from 2014 onwards – the 2008/12 group have all but vanished… a big clue! UK new players Atom, Monzo, Starling and Revolut launched 2013/15 Today, none have scale so important in banking, none making consistent profits so important to ensure consumer Trust and keep a banking license “A decade after these fintechs burst on to the scene, they have arguably succeeded in their mission of setting new standards for digital banking…” “…consumers are using neobanks as a convenient payment management service, rather than as a replacement for traditional current accounts” Only 6% UK consumers use neo bank exclusively - no USP! SECURITY & COMPLIANCE RISKS “..the ability to quickly open accounts and make transfers has also proved a boon for criminals. Britons lost £1.2bn to financial fraud last year..” “…start-ups struggled to scale up their anti-financial crime capacities at the same speed they were attracting new users… new sanctions imposed..2021 increased the amount of due diligence banks had to conduct..” “There cannot be a trade-off between quick and easy account opening and robust financial crime control,” FCA “…compliance has also raised concerns” Revolut has more complaints than all other Fintech’s combined NEO BANK TEST “But they are now being tested in a downturn..” “The plentiful venture capital that financed their heady growth… — is drying up” “Global fintech investment has dropped by nearly 50% in 2023..” “Investors in fintechs are increasingly scrutinising the neobanks’ differing business models and assets, looking for proof they can be durably profitable and attract sufficient deposits to fund lending” “….high-street banks have raised their game by upgrading their own digital banking services, with the result that about 60% of adults living in Britain now use a mobile banking app, up from 33% in 2015 NEW ‘DIGITAL’ BANKS JP Morgan launched September 2021, has 2 million customers with avg deposits £27,000 (US$29,084) well above Neo Banks That’s more than Monzo Bank and Starling Bank togther Goldman Sacs another ‘legacy’ player launched in UK 2018, now has 1 million customers JP Morgan and Goldmans are growing at a much faster rate than Neo Banks at the same stage GLOBAL GROWTH In 2020 242 Neo-banks existed as VC's pilled in, the number swelled to 450 by 2022 – while 139 failed in 2022-24 A recent report questions the future especially profitability, so essential in banking. Simon-Kucher report is stark “Of 400 neo banks in the world, less than 5% are breaking even.....several are in the cash-burn zone losing as much as $140 per customer annually.” “..neobanks recognise they will not survive at scale and be sustainably profitable without a two-sided balance sheet.." https://lnkd.in/gT_je9Ux

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𝗔𝗰𝗰𝗲𝘀𝘀𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝗶𝗻 𝗠𝗲𝗿𝗰𝗵𝗮𝗻𝘁 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 It was encouraging to see the merchant payments ecosystem from across Europe coming out in force yesterday to explore the collaborative options to deliver truly accessible merchant payments acceptance. Participants from Denmark, France, Germany, Netherlands, Spain and UK covered all stakeholder groups from #cardschemes, #acquirers, #paymentprocessors and #gateways, #consultancies, payment terminal, unattended and self-checkout payment interface providers and the all important merchant. The journey between now and the June 2025 European Accessibility Act 'deadline' – and beyond – will be challenging but with the collaborative intent and the inspirational examples of organisations who are both leading the way AND prepared to share their expertise, we can bring change. We were reminded of Vendorcom’s long history of championing #accessibility, going back to 2005 when Dr John Gill, Chief Scientist at RNIB introduced the fledgling digital payments world to the challenges of Chip & PIN. We’ve come a long way since then but many challenges remain. Presentations from Remco Willemse, CEO at PAYTER, Sabine Croxford, Senior User Experience Consultant at RNIB and Joanne Dewar, who leads the visionary Project Nemo, left delegates in no doubt as to the challenge ahead. Progress is being made in face-to-face in-store payments, but the online, call-centre and unattended channels all present a mountain to climb. It was a bonus to be joined by Mike Adams, CEO and Founder of Purple Tuesday and to hear from Willem Wellinghoff, UK Chair at Ecommpay about their investment in accessibility by design. I hope you will Join us on the journey – share this post, connect with me and comment to give others the benefit of your knowledge and experience of what’s already been achieved and where the challenges lie ahead that we need to be tackling. Thanks to all who joined us yesterday!

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Very interesting article in the Financial Times which sums the situation up perfectly. The new entrants have moved the market on with the services delivered, however despite being used for their "free" or innovative services, users still remain wedded to the incumbents. https://lnkd.in/eR3kaGXV

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Did you know? In 2024, the UK's payment technology is rapidly advancing with widespread use of instant payments, digital wallets, and growing open banking. Contactless payments are rising in popularity, while 62% of businesses are enhancing fraud prevention through multi-factor authentication (MFA) and tokenisation. Read more in our latest newsletter: https://bit.ly/3LzZi9Q QUBE Events is proud to welcome John Mowat, Head of Strategic Policy at Pay.UK as a Speaker on “The Evolving Landscape of Digital Payments in the UK” at The 3rd Financial Innovation Forum - Payments & RegTech on 19 September 2024 at the Sheraton Grand Park Lane in Mayfair, London, United Kingdom. Topics Include: » Contactless and Mobile Payment Adoption, emphasising the impact on consumer behavior and expectations » Open Banking and PSD2/3 Influence: Discuss the transformative effects of Open Banking and the Revised Payment Service Directive (PSD2/3) on the digital payments ecosystem » Innovation in Payment Technologies: Exploring emerging technologies Get ready to engage with Payments and Regtech experts! Book now to secure your spot and enjoy a 10% discount before it expires! Contact us at [email protected] to claim the discount! To register and access the agenda: https://bit.ly/3xgoTk8 For more information on registration, please contact [email protected] #qubevents #FinancialInclusion #financialinnovation #Payments #RegTech #LondonEvents #FutureofFinance #Networking #RegisterNow #JoinUs #UK #Innovation #conferences #CEO #leaders #financialservices #finance #fintech #forum #sponsor #meeting #London #UnitedKingdom

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