Finextra Research: Latest fintech news, analysis, interviews, features and opinion by industry experts

Report

The Future of Regulation: 2020 Predictions

Transformative regulations designed to stimulate and steer the exploding number of developments in innovation will be a dominating influence across the financial services industry in 2020, driven by the ongoing pressure fintech disruptors exert over incumbents. Concern over regulatory enforcement has increased significantly. Firms understand they are putting themselves at risk by violating regulations, and nearly 25% feel that the most important function of compliance is the avoidance of incurring such fines. This report explores the key regulatory updates that are bearing down on the financial services industry during 2020 and beyond, delving into the ramifications of the changes and consult industry experts to unscramble the intricacies of each regulation to advise on how to best prepare for each transition. Download your copy of the report now.

04 March 2020 578 downloads

Report

Unlocking Revenue Through Digital Identity

Banks' business is not banking, it's trust. When it comes to identity and authentication processes, financial services providers must look to the Nordic region as a blueprint. Sweden, Norway, Finland and Denmark have leveraged partnerships with banks to form strong and established digital identity propositions. Banks are at an advantage in comparison to governments, third parties or other financial services players, however a degree of collaboration is required because traditional lenders cannot succeed alone. Download your copy of the white paper below to find more.

30 January 2020 693 downloads

Report

The Future of Cybersecurity: 2020 Predictions

2020 promises to be another politically-charged year around the world. Even with the possibility of any referenda in the UK now largely removed, the US election in November may bring to the fore cyber threats and the evolving methods of nefarious actors to interfere with business and government. Financial services companies will therefore be monitoring the cybersecurity space and evolving threats encountered and the methods used to mitigate them. In conjunction with experts of the financial services industry, Finextra explores trends to watch and predictions for cybersecurity in 2020 and beyond. Download your copy of the report now!

28 January 2020 721 downloads

Report

Avoiding Improvisation: A 3-Step Guide to Harmonising Electronic Identity Verification

Challenges to due diligence compliance come in multiple forms - biometric, document validation, electronic identity verification - making this a vast and varied area of concern for financial institutions. Research by Fenergo states that fines levied on financial services firms for KYC, AML and sanctions-related breaches since the financial crisis total nearly $26 billion. However, due diligence is inherently complicated for global companies required to meet the regulations of multiple countries and regions. The chief compliance officer of a global organisation has an incredibly complex job. This role could be compared to that of an orchestra conductor ensuring that all areas of the business are following the sheet music of regulation properly and that everyone is keeping time and playing their part. This is a point study of the key considerations companies should make in their due diligence requirements in electronic identity verification (eIDV). Download your copy of the imapct study below to find out more.

08 January 2020 315 downloads

Report

Embracing Open Banking with Secure and Interconnected APIs

In financial services today, data is an asset. But only if it can be accessed, transformed and integrated securely into internal and external ecosystems. In the world of open banking the definitions of competitor, partner and customer are blurring. It is particularly important for financial institutions to have a cohesive strategy to manage the integrations that tie together their systems from back office to customer-facing channels. This needs to happen across lines of business and international operations, and be able to expose functionality and data to build innovative new services with third parties. Application Programming Interfaces (APIs) have become the most accepted method for building systematic connecting points between an organisation and the outside world. They are often used internally as well, alongside more traditional internal integration patterns such as file transfers and middleware. The widespread use of APIs has led some to talk of the “API economy” as a way to describe the new business models emerging. Large organisations are transforming themselves to compete and partner with new service entrants such as aggregators while start-ups create new businesses by combining functionality provided by APIs from multiple sources. There are many drivers for organisations to develop an effective API strategy. Within financial institutions from the board level down there is pressure to continually modernise and embrace digital transformation to optimise costs, become more efficient at developing new products and services and boost revenue from customers that expect better, faster, anywhere/anytime service.

20 December 2019 646 downloads

Report

How to Protect and Grow in the Fintech Industry

A 3-Step Guide to Generating Revenue and Becoming Profitable. A monetisation strategy must be devised so that the company can decide what value will be created and who will pay, whether it is the customer, thirdparties that want access to the consumer or third-party beneficiaries who can derive value from the user. There is no universal formula for success that can work across all business models. The most common way of generating revenue is charging consumers. This would work well in a startup model as these organisations are unencumbered by legacy infrastructure and cost structures, so new financial services entrants can charge fees that are lower than what customers are accustomed to paying, while at the same time, continuing to create better user experiences. However, untrusting customers want more than a better customer experience and companies need to establish revenue sources that can be diversified over time. Additionally, financial services providers must give their customers a reason to bank with them and this can be done by ensuring defences are built against financial crime, providing analytically driven decisions and streamlining the lending process. With this in mind, there are three important steps to be taken to proceed towards long term profitability.

09 December 2019 425 downloads

Report

The Banks as Universal Digital Trusted ID Providers

This whitepaper by Finextra and HID Global explores the new trends in digital identity and highlights how financial institutions are well placed to play a central role in these developments as well as some of the more advanced responses in the financial sector from both a regulatory and business case perspective. Being able to prove you are who you say you are is the basic underpinning of many economic activities, and traditionally this proof has come in the form of personal interactions and physical documentations. But over the past 20 years, the concept of digital identity has emerged, with varying definitions, and several long-term trends that have been building over the past decade are combining to transform digital identity and the way consumers and businesses interact and transact in the economy. Digital identification and authentication will be radically different in the coming years than the simple username and password combination that have persisted since the dawn of the digital age. And financial institutions, with their long experience of identity assurance and trusted role within the economy, are well placed to play a central role in these developments. Download this new whitepaper produced by Finextra, in association with HID Global, exploring these trends and highlighting some of the more advanced responses in the financial sector from both a regulatory and business case perspective.

06 November 2018 847 downloads

Report

Interconnection and Data at the Edge: The Next Frontier Of Competitive Advantage In Financial Services

There is a consistent focus on digital transformation within traditional banks. This paper, produced by Finextra in association with Equinix explores how interconnection and computing at the edge can help banks successfully navigate digital transformation and secure competitive advantage; whatever the future landscape looks like. Traditional banking is experiencing disruption on an unprecedented level, driven by regulatory change and increased customer demand. In order to remain relevant, banks need to go beyond compliance with legislation and a “me-too” offering, to a new frontier where they are considering new business models, innovating new revenue streams and working with new partners to offer a personalised experience. Banks lack the agility to capitalise on this opportunity given legacy technology, the ever-present threat of cyber-attack and the regulatory restrictions which are a pre-requisite for market participation. Through an online survey of over 100 expert financial services professionals, and a series of one-to-one interviews with senior bankers, this new paper lays out the key issues and opportunities faced by banks over the next five years. Download the paper now to view the results.

20 July 2018 695 downloads

Report

Meeting EU Regulatory Requirements in A Post Data Breach Era

2017 played host to a catalogue of data breaches, and some of the most shocking examples were those that were an updated account of previously reported breaches. This has done nothing to augment already dwindling trust in financial services. In the wake of the second Payment Services Directive (PSD2), the General Data Protection Regulation (GDPR) updates and AntiMoney Laundering (AML) updates with their regulatory requirements for stronger verification and more rigorous data protection, have current verification methods passed their expiry date? The plethora of digital account services available now has given rise to more opportunities for cyber criminals to breach customer account data- this can then be sold on the dark web and used for fraud and money laundering. At the same time, the rise of cryptocurrencies has enabled such nefarious activities by providing anonymity. What is the way forward for digital payment and service providers to know exactly who their customers are as they come under increased regulatory scrutiny? Download this new white paper, produced by Finextra in association with Mitek, as we explore these issues and highlights some of the emerging methods financial institutions can deploy to meet compliance obligations while onboarding their customers in a secure, user friendly manner.

04 June 2018 719 downloads