In third parties we (mis)trust?
Technology is transforming trust to the point that people find themselves trusting others with whom they’ve had no experience, on eBay or Facebook, more than banks they’ve dealt with their whole lives.
Features
Currency Cloud Report: Filling the Need for Speed (Minus Cost/Complexity) (Dec. 15, 2015)
London-based B2B fintech company Currency Cloud recently released a trend report revealing the need for faster, less expensive and less complicated ways to make cross-border business payments. With $18 million in funding fueling its U.S. expansion, Currency Cloud says it’s taking on those cross-border pain points.
Senator Menendez Strikes at Prepaid Again
It’s almost become a holiday tradition for Senator Robert Menendez (D-N.J.) to propose prepaid legislation in December. His previous three attempts went nowhere, but this time he proposed his bill in November. Still, more pressing issues, such as spending and cybersecurity, may keep his measure on the back burner for now.
EU Fee Caps Effective Today (Dec. 9, 2015)
The European Union’s cap on fees banks can charge retailers for processing credit and debit card payments went into effect today, but there are some questions whether the measure will have the desired effect.
Target Reaches $39.4 Million Breach Settlement with Banks, MasterCard (Dec. 2, 2015)
Target is moving another step forward in its attempts to put its 2013 data breach behind it.
House Committee Applauds Mobile Payments Innovation (Dec. 2, 2015)
In a Congressional hearing yesterday, lawmakers examined the role mobile payments technologies are playing in disrupting traditional payments, paying particular attention to how mobile has increased payments security and enabled small businesses and underbanked consumers to access electronic payments.
Gift Cards, E-Commerce Drive Holiday Shopping
U.S. shoppers flocked to physical and online stores during the Thanksgiving weekend, with more than 151 million Americans shopping in-store and/or online, based on data from the National Retail Federation. The shopping frenzy is expected to continue, with Cyber Monday deals projected to drive 121 million U.S. consumers to shop online. Average spending per shopper was $299.60, and gift cards were especially popular, comprising a whopping 76.6 percent ($229.56) of that average total.
ERPB Approves Instant Payments Plan (Nov. 29, 2015)
Instant payments are a step closer to becoming a reality in Europe, now that the European Payments Council (EPC) has submitted and received approval on its proposal for the design of a pan-European instant credit transfer framework.
Losing the risk management war
It’s no secret that past risk management practices and regulatory frameworks failed with respect to the global financial crisis. There were a number of reasons behind this, ranging from an overreliance on quantitative analysis to poor risk governance and frameworks, not to mention a lack of understanding around concentrated risk build-up such as leverage, convexity […]
Getting fintech on bank CIOs’ radar
It is a well-known fact that banks have two types of technology: Cold War-era IBM mainframes running Cobol-based batch programmes and Evil Genius HFT systems. The mundane truth is that any financial services operation will have a range of hardware and software systems of different vintages and spend a lot of time and money living with the consequences.
Viewpoint: Accessing Europe: The World’s Largest Single Market
Craig James explains how passporting with an e-money license allows U.S. prepaid companies to conduct business in EU countries.
Merchants Use First Amendment in Florida Surcharge Law Fight
Retailers argue the semantics between calling a price difference a “surcharge” or a “discount.”
Trio Indicted in Cybercrime Scheme Including JPMorgan Hack (Nov. 11, 2015)
Federal prosecutors have charged a trio of accused cybercriminals in a wide-ranging hacking and fraud scheme Attorney General Loretta Lynch called “one of the largest thefts of financial-related data in history.”
Anti-CFPB Group Amps up Rhetoric with TV Ad (Nov. 11, 2015)
A 30-second advertisement that aired during last night’s Republican presidential debate took aim at the CFPB and likely raised the hackles of the bureau’s proponents.
Senators Urge CFPB to Investigate Prison-Release Prepaid Cards (Nov. 11, 2015)
Eighteen U.S. senators led by Cory Booker (D-N.J.), sent a letter last week to the CFPB urging protections for prisoners released from jail who receive prepaid cards when they exit incarceration.
CFPB Sets New Rules for Appeals (Nov. 4, 2015)
Companies seeking to appeal a supervisory action undertaken by the CFPB have to play by some new rules, now that the agency has revised its appeals process.
Study: CMOs Predict Modest Increase in Holiday Sales
Chief marketing officers at 100 U.S. retailers are expecting a 4.2 percent increase in holiday season total store sales this year, which is in line with last year’s 4.1 percent increase, according to a the 10th annual survey from BDO USA, a professional services firm and consultancy.
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.
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.
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.
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.”
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.
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.
