Viewpoint: Virtual Currency State Roundup
Legislators and regulators are grappling with how to apply existing money transmitter laws to an emerging industry. Read about the challenges and latest developments across the U.S.
Analysis
State AGs Seek Support for Requiring PINs with EMV Cards
States are getting into the EMV with PIN push, which they say will provide better fraud protection.
Illinois Court Declines to Certify Class in Kmart Data Breach Dispute
A class action related to the Kmart breach in 2014 was struck down.
N.Y. DOL’s Reissue of Payroll Card Proposed Rule Jeopardizes Cards in the State (Oct. 29, 2015)
The New York State Department of Labor this week reissued its proposed rule on payroll cards (see page 7 of PDF), which is similar to the one issued in May. Although some of the DOL’s changes are favorable to the industry, lingering provisions, particularly those around banned fees, will prove problematic to payroll card business models.
Why pending rate rises fuel the need for collateral optimisation
Eight years on from the global financial crisis, and banks continue to face a growing number of challenges. Many have ceased or significantly reduced proprietary trading, with the resulting reduction in both risk and reward. This period has also seen lower risk appetite among many investors and continuing global competition which has put pressure on profit margins,
DOE Publishes Final Rule for Title IV Funds Disbursement (Oct. 27, 2015)
The U.S. Department of Education released its final regulation regarding Title IV funds disbursement before the Nov. 1 deadline, which means the regulations will go into effect July 1, 2016, and apply to the 2016-2017 school year.
From 700BC coins to digital wallets and beyond – the three millennia evolution of payments
From the very first coins changing hands in 700 BC, through to the Bank of England pioneering the first use of a pre-printed form – or cheque – in 1717, and the emergence of credit cards in the mid 20th century, how we pay for goods and services has continued to evolve. We now face a cashless society
Breaking News: CFPB’s Cordray Weighs in on RushCard (Oct. 23, 2015)
Despite reassurances from UniRush Chairman and CEO Rick Savard earlier this week that the company is working around the clock to address any remaining cardholder issues arising from its recent technology migration, CFPB Director Richard Cordray today offered his two cents on the matter, saying the bureau will use “all appropriate tools at our disposal to help ensure that consumers obtain the relief that they deserve.”
Why should banks care about ‘tech levels’?
The fact that London’s financial services sector is also a hot spot for technology innovation is not news. In 2014, investment in financial technology firms grew by 136%. Earlier this year, George Osborne identified London’s financial technology sector as a particularly bright spot in the recovering economy – not surprising when you consider the transformational effect that information technology continues to have on the industry
Viewpoint: Selfie Generation Demands Personalization
The selfie boom was born in 2003 with the world’s first front-facing camera, and millennials are the first generation to grow up with technology focused on one’s self, bringing new expectations to the meaning of personalized, digital services.
Viewpoint: Prepaid Opportunities: What Are You Leaving on the Table in the Battle for Customer Acquisition and Retention?
Personalization has become more important than ever to consumers, as they shun anonymous mass advertising in favor of individual reviews and one-to-one brand engagement. But what if instead of helping big brands to adapt, you were to lead the change? This is where competitive advantage comes to life.
Viewpoint: Carrier Pigeons and What the Payments Industry Can Learn from FedEx
Clearly there’s an issue with how banks manage cross-border money transfers and payments. The process is inefficient, costly and archaic. That being said, I can understand why it is the way it is—building a truly global platform that enables FedEx-like payment transfers is no easy feat.
NRF: Gift Cards (Again) are Most Wanted for the Holidays
The National Retail Federation’s annual holiday survey puts gift cards on top as the most requested holiday gift for the ninth consecutive year. Plus, consumers share plans for their most mobile holiday shopping season yet.
Blockchain: widely discussed but what are the implications?
The fintech revolution is now firmly established, and disruptive technologies are blooming all across the sector. From securities to payments, everyone in the sector is watching to see how the next innovation will affect their business.
Will banks suffer casualties in the battle to own the customer experience?
Technology has infiltrated every facet of our lives, fundamentally changing our behaviour patterns and our expectations of what constitutes a good customer experience. The banking sector has not been immune to these changes; the industry has been forced to drastically transform its business processes and services in order to keep up with customers’ expectations. Today, customer satisfaction is judged not by the smile on the face of a cashier, but on the speed with which one can gain mobile access
Is everybody API?
Competition from financial technology companies and regulatory changes are forcing banks to adopt APIs to provide access to client information, which has many implications across the industry.
It’s not who you know, it’s what you know
Sluggish economic growth in developed nations means attention is still focused on the growth markets of the Brics nations. As intra-regional trade grows, local knowledge is becoming a valued commodity.
From tiny acorns …
From its tentative early steps to open the Swift network to corporations, Swift has been steadily building its corporate membership. Swift membership is increasingly an option for not only large multinationals, but also medium sized companies. Daily News at Sibos looks at the current status of Swift for Corporates.
Second Circuit Holds Credit Card Surcharge Doesn’t Violate U.S. Constitution
Court considers whether it’s permissible for a discount for using cash or a surcharge for using credit cards.
SoulCycle Pushes Back Against Alleged Gift Card Violations
A high-end fitness company selling tickets to reserve a spot in a specific class at a designated date and time comes under scrutiny for violating the CARD Act.
SCOTUS Denies Cert in Borders Gift Cardholder Suit
Borders gift cardholders do not get to claim $210 million in unredeemed gift card funds.
Retailers Continue to Challenge Interchange Fee Settlement
Target Corp., Amazon.com and a host of other retailers continue to challenge MasterCard, Visa and several large banks over the terms of a $7.25 billion settlement reached in 2013. The settlement was supposed to end the retailers’ claims that the banks and MasterCard and Visa artificially inflated interchange fees. Several of the largest retailers, however, […]
Viewpoint: Contrasting Payments Innovation in Europe and the U.S.
America has led Europe in payments innovation. Europe has led in payments regulation. The recent rubberstamping of PSD2 in Brussels suggests that’s likely to continue.
The path to a post-trade utility
Shared utilities could save institutions as much as 40% of their current processing costs, but there are challenges to implementation.
The value of utility
Compliance obligations are increasing for financial institutions. A utility approach to the issue is gaining favour …
Finding the right fit
Trade finance plays an important role in helping to grease the wheels of the global economy. A largely paper-based process, effort is being put into finding ways to automate and improve processes for banks and corporates.
Building a new risk architecture
It seems that at each Sibos, certainly since the financial crisis of 2008, a regulatory deadline is looming large. This year’s model is the Basel Committee on Banking Supervision’s (BCBS’) 11 principles for effective risk data aggregation and risk reporting (BCBS 239), with which globally systemically important banks (GSIBs) must comply by 1 January 2016. However, a report on the progress of adoption reveals a lack of preparedness.
Meeting the need for speed
Real-time payments systems and infrastructures are being rolled out globally. What impact will they have on financial institutions? How fast is too fast? Daily News at Sibos asked delegates where the trend is heading …
The instant catalyst
Immediate payments are acting as a catalyst for banks to add value and develop holistic payment solutions. In this extract from World Payments Report 2015, the impact of immediate payments on banks’ offerings is examined
Rearranging risk
Pushing more complex products towards mandatory central clearing may increase the risks to which CCPs and clearing members are exposed. Frances Faulds examines whether CCPs can continue pooling risks in a safe and efficient way
Keeping it real
Global interoperability of real-time payments systems will require harmonisation of market practices and standards.
Chips off the old blockchain
The distributed ledger is one of the hottest topics in financial services. Born out of the crypto-currency bitcoin, the blockchain concept has gone mainstream and the first area to feel the impact is likely to be payments.
ISO 20022: Working in Harmony
Despite celebrating its 10th birthday in 2014 – or perhaps because of it – the number of variations of ISO 20022 being deployed is prompting concerns that it is rapidly becoming less useful as a standard. There is increasing recognition that differences in implementation and market practices could lead to a fragmentation of the standard.
Coming in from the cold
Fostering innovation in financial technology has become a much more collaborative affair: global banking giants are courting small technology start-ups in the hopes of gaining a competitive edge in financial services …
Caught in the crossfire
Cyber attacks cost little to perpetrate, but plenty to prevent. A focus on external and internal factors will help financial institutions to mitigate the threat.
Europe’s unsettling times
T2S, Europe’s harmonised settlement platform, is live. With a series of migration waves scheduled up until full live operation in July 2017, the next few years are likely to be characterised by intense activity as market participants finalise their strategies …
European Parliament Passes PSD2 by Landslide (Oct. 8, 2015)
The yeas have it. The European Parliament today has passed the second major payments regulation in 2015, with 578 votes in favor of the Revised Payment Services Directive (PSD2).
Defendants Appeal Judge’s Refusal to Dismiss McDonald’s Class-Action Suit in PA (Oct. 8, 2015)
Two McDonald’s franchise owners have appealed a judge’s refusal to dismiss a class-action lawsuit alleging they illegally mandated employees be paid via prepaid cards.
CFPB Draws Line in Sand Regarding Arbitration Clauses (Oct. 7, 2015)
Prior to today’s field hearing in Denver, the CFPB has announced it’s considering proposing rules that would restrict consumer financial companies from using certain types of arbitration clauses that block consumers from forming class action lawsuits to obtain compensation.
ECJ’s Takedown of Safe Harbor Spells Trouble for U.S. Firms (Oct. 7, 2015)
Europe’s top court has struck down a longstanding agreement that enabled U.S. companies to handle the personal data of users in the European Union without being subjected to EU privacy rules, in a decision that will significantly affect not only tech giants like Google and Facebook, but payments and financial services companies, as well.
