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

Why Traditional AI should be used alongside Generative AI for Fraud Prevention

At EBAday 2024, Marc Corbalan, Vice President, A2A Risk Solutions, Visa, explores fraud detection advances and strategies. Generative AI is truly revolutionary and outperforms traditional AI when it comes to analysing text, voice, and imagery, namely describing when transactions are risky. However, Generative AI struggles with numerical data that includes patterns, which is what fraud analysts using search for. This is why traditional AI must be used alongside Generative AI.

01 August 2024

Finextra TV/payments

2024 Payments Trends and Adding Value

At EBAday 2024, Michael Whitehead, Head of Sales - Europe, iGTB, and Tapan Agarwal, Head of Payments Solutions, iGTB, Intellect Design Arena, focus on the range of payments trends that are circulating within the industry and what is pushing innovation forward. The pair pay close attention to European regulations that are mandating instant payments, as well as the One-Leg Out Instant Credit Transfer and the G20's bid to ensure payments get faster, cheaper and more transparent. Further, they explore how banks can build on value-added services using technologies such as Generative AI, DLT and IoT, which will evidently lead to an explosion of payments.

23 July 2024

Finextra TV/payments

How Open Banking will Enable Embedded Finance

At EBAday 2024, Afonso Eça, Appointed Executive Board Member, Banco BPI, expands on the future of open banking and embedded finance and how these two trends are transforming the financial industry. While regulatory pushes such as PSD2 led to more uptake of open banking, financial institutions continue to take advantage of what is occurring in the fintech space and move forward. The conversation also turns to how open banking is the catalyst for embedded finance and through open payments, customers and businesses alike will be able to simplify the payments journeys of small business operators.

19 July 2024

Finextra TV/payments

SEPA, ISO 20022 and the Road to Innovation and Resiliency

At EBAday 2024, Renata Vilanova Lobo, Head of Global Clearing, J.P. Morgan Payments, explores the cross-border impact of SEPA on European and global interoperability and why ISO 20022 is crucial for financial institutions. There is an urgency for financial institutions to transition because of deadlines, but also due to the great benefits this change can bring to the industry, being the biggest change in payments in the last 30 years. Resiliency plays a critical role in today's landscape and it is expanding its concept; as a result, and banks must consider geopolitics, economic downturns and unforeseen challenges on top of operational stability.

19 July 2024

Finextra TV/payments

What changes lie ahead for the future of real-time payments

At EBAday 2024, Paul Francis Walvik-Joynt, Senior Vice President, Real Time Payments, Mastercard, shares an outline of what changes lie ahead for real-time payments and what the proliferation of real-time payments means for the adoption of instant payments. It is evident that trust needs to be maintained as the industry grows and introduces new networks, ensuring organisations are remaining resilient and fraud is combatted. Further, with the advent of new real-time payments systems, opportunities are opening up for domestic and global payments, and for technologies such as AI to be leveraged.

17 July 2024

Finextra TV/payments

The global approach to solving payee verification challenges

Albert Sitelis, Head of Partnerships & Market Development at Banfico, discusses the hurdles of meeting the IP regulation compliance deadline for payee verification at EBAday 2024. With over 5000 PSPs in Europe, connectivity remains a major challenge, despite existing name check systems in several countries. Sitelis stresses collaboration among schemes, technical providers, and banks as crucial, and advocates for broader industry involvement beyond banks to combat APP fraud globally, suggesting the need for enhanced data analysis beyond name matching.

16 July 2024

Finextra TV/crypto

The Potential of Programmable Payments

At EBAday 2024, Gilbert Verdian, Founder and CEO, Quant, explores how programmable payments can enhance the efficiency of both personal and business financial transactions. Highlighting the important role of the Regulated Liability Network (RLN) in the UK, the discussion turns to advancing programmable payments using both existing and tokenised bank deposits. Further, how innovations in programmable payments can reduce issues associated with failed transactions.

10 July 2024

Finextra TV/payments

Payments Evolution: Key Drivers for Transformation

At EBAday 2024, Andrea Pennacchia, Head of Banking and PA Solutions, Nexi Payments, identifies the key drivers of account to account payment market transformation towards digital and real-time processing. While the payments landscape is changing, the industry has to match new customer needs, fast changing regulatory demands and payments infrastructure evolving needs. Instant payments, among these trends, will drive this payments (r)evolution.

09 July 2024

Finextra TV/payments

Cross-border payments: Unveiling the real value of industry initiatives

At EBAday 2024, Simon McConnell, Board Member, Euro Banking Association, and Annick Moes, Assistant Director, Euro Banking Association, provide a sneak peek into an EBA survey on cross-border payments. While there is a clear roadmap for enhancing these payments, the multitude of industry initiatives makes it difficult for payment service providers to determine how to best get there. This mesmerising conundrum can only be resolved by cutting through the marketing speak, taking stock of the different initiatives and unveiling their value for solving the identified challenges.

09 July 2024

Finextra TV/crime

Verification of Payee: Why pan-European cooperation matters

At EBAday 2024, Hays Littlejohn, CEO, EBA Clearing and Erwin Kulk, Head of Service Development and Management, EBA Clearing, explain how network-based fraud pattern and anomaly detection can boost the customer experience and safety provided by verification of payee checks. The pair exposes the added value that EBA Clearing’s pan-European verification of payee solution will bring as from its launch in December 2024. Cooperation on fraud mitigation was one of the biggest topics at EBAday and this practical example of a collectively designed and delivered toolset makes it clear why joining forces against fraud matters.

08 July 2024

Finextra TV/payments

Balancing Regulation with Innovation: Paving a Way Forward

At EBAday 2024, Erik Alstromer, Head of Product Europe and New Markets, Form3, comments on how financial institutions spend the majority of their time and resource on regulatory compliance and keeping up with their competitors. At EBAday, it was revealed that regulatory matters was the number one driver away from innovation, which is a disappointing revelation. The solution is two-fold: products must be built on the cloud so that change can be implemented flexibly and banks must partner with the ecosystem - gone are the days where one partner supports a financial institution with all projects.

08 July 2024

Finextra TV/payments

What other regions can learn from instant payments success in the Nordics and the UK

At EBAday 2024, Peter Larsson, Director European Markets, Tietoevry Banking, chats through the future of the Instant Payments, and how success from the Nordic region and the UK showcase real-time value for Europe. Instant Payments are expected to become the universal standard in the coming years, and after bringing harmonisation through interest in real-time, Instant Payments will become the core and baseline for innovation of new products and services at banks for domestic and cross border payments.

05 July 2024

Finextra TV/payments

Instant Payments: Are Banks Ready for the Transformation Wave?

At EBAday 2024, Daniel Hurst, Head of Products and Services for FIS' B2B Payments and Money Movement - EMEA, FIS Global, offers his opinion on whether banks are ready for the rollout of instant payments and in particular, the January 2025 deadline for inbound payments. It is evident at EBAday that while some banks are taking compliance extremely seriously, other financial institutions are in discussions with regulators to extend timelines or are campaigning against it, citing PSD3 and that their organisation does not come under the jurisdiction of the rules. The industry must also consider whether banks are prepared to migrate every process to real-time, because that will mean that in addition to payments speeding up, core banking, reconciliation and fraud prevention will also have to keep pace. For banks currently not operating at 24/7/365, this will be a sea change.

05 July 2024

Finextra TV/payments

Instant Payments and Fostering Interoperability

At EBAday 2024, Marianne Demarchi, Chief Executive Europe, Middle East & Africa, Swift, focused on the incoming Instant Payments Regulation and Swift's recently released research on SMEs and cross border payments. Exploring the impact of the regulation on the industry and Swift's role, the discussion covers how interoperability can be facilitated between domestic Verification of Payee providers, enhancing their reach across Europe and beyond, while simplifying compliance with the regulation for financial institutions.

04 July 2024

Finextra TV/payments

Instant Payments Liftoff: The Importance of Customer Experience

At EBAday 2024, Simon Eacott, Head of Payments, NatWest, discusses the instant payments evolution, revolution and the challenges that remain for banks that are required to implement instant payments. Beyond the technical challenges and the regulatory agenda that has led to congestion in delivery and before full adoption of instant payments can be achieved, financial institutions must ensure they have a customer experience that works. Technology must be embedded in the customer journey to allow instant payments to take off, and consumer protection must also be prioritised so that the experience is akin to card payments.

04 July 2024

Finextra TV/payments

Is the era of A2A payments about to begin?

At EBAday 2024, Simone Del Guerra, Head of Central Institutions & International Sales, Nexi Group, talks about the development of A2A payments and how instant payments will be the catalyst for A2A payments in Europe. A2A payments are currently fragmented due to the user experience at point of sale not being as efficient as more popular payment methods such as credit cards or digital wallets and customers also do not have the knowledge of or trust in A2A payments. However, successful case studies from across the globe tend to be based on instant payments, driving home the fact that perhaps these two types of payment should be connected, particularly because this will in turn, push forward standardisation of overlay services such as Request to Pay, database proxy and use of QR codes.

04 July 2024

Finextra TV/payments

Payments as a Service - Modernising and Outsourcing

At EBAday 2024, Nadish Lad, Global Head of Product, Volante Technologies, sets the scene in regards to Payments as a Service, where the industry is at and the next steps for financial institutions looking to modernise further. Gone are the days of the traditional model where products were procured by banks and deployed in their own data centres. The future is PaaS, and the product and the delivery mechanism must be outsourced, leaving banks to focus on banking - assured that their infrastructure, upgrades and maintenance are well looked after.

04 July 2024

Finextra TV/payments

Instant Payments Regulation and the Impact on Cash and the Digital Euro

At EBAday 2024, Nuria Mohedas, Head of Payments and Digital Banking, Cecabank and Julio César Fernández, Head of Business Development and Operations Support, Cecabank, share their opinion on the new European Instant Payments regulation. Join Cecabank as they explore the evolution of cash in Europe and the dive deep into what influence the new Digital Euro project could have, particularly in light of new regulations like PSR.

03 July 2024

Finextra TV/payments

Implementing Instant Payments: Challenges and Strategies for Banks and PSPs

At EBAday 2024, Sheri Brandon, Chief Market Officer, Northern & Western Europe, Worldline, sets the scene around the challenges and strategies that permeate when implementing instant payments, including short deadlines that must be met amid many other ongoing regulation projects. Resources can be constrained in these scenarios, and banks must now consider how new regulation will lead to new requirements, such as Verification of Payee, and ensure these processes fit into current processes. The discussion also covers implementation of instant payments and the trade-offs that must be established. Security must be enhanced, the back office must be managed differently and maintenance windows must be rescheduled as liquidity management is of paramount importance. Moving from predictable flows to instant flows will be a cumbersome challenge.

03 July 2024

Finextra TV/ai

AI's Role in Shaping the Bank of the Future

At EBAday 2024, Lilia Christofi, EMEA Banking Leader, Microsoft, explores the potential risks associated with implementing AI in the financial services industry, but also the role that the technology can play in shaping the bank of the future. Financial institutions need to ensure that they are leading across AI adoption to mitigate any potential risks that may emerge.

03 July 2024