October 19 — Digital payments are experiencing a boom, driven by developing markets, according to Capgemini and BNP Paribas’ World Payments Report 2018. However, the innovation landscape is payments is uncertain as bigtech entrants make their presence felt, and incumbents face technical and regulatory complexity in the development of new collaborative payments ecosystems between themselves and fintechs. According to the report, it will take more than bank-led initiatives to grow the new payments landscape. The broader financial services community — including public-sector organizations, regulators and third parties — must determine their new roles and work together with large payment users to ensure a smooth, balanced and robust payments ecosystem development.
October 18 — New entrants to the banking market — including challenger banks, non-bank payments institutions and big tech companies — are amassing up to one-third of new revenue, which is challenging the competitiveness of traditional banks, according to new research from Accenture.
October 17 — The latest quarterly consumer trends research from Fiserv Inc. shows that as the importance of digital engagements has grown, so has consumer comfort using non-financial companies to conduct financial activities. While consumers remain most comfortable with traditional financial organizations, a growing number say they would use a technology company such as Apple or Google to pay bills, take out a loan and conduct other financial activities.
It’s happening, and banks need to be prepared.
By Michael Scheibach, Contributing Editor
My apologies if you’ve heard this before. Mobile payments — aka mobile money, mobile commerce, mobile wallet, contactless payments — seem to have finally passed the tipping point, according to Juniper Research. Its report, “Mobile Wallets: Service Provider Analysis, Market Opportunities & Forecasts 2018-2022,” predicts that next year, 2.1 billion consumers worldwide will make a mobile payment or send money. That’s nearly 30 percent more than the 1.6 billion consumers in 2017.
Fort Lauderdale Fla. // www.myvelocity.com
Through the acquisition of CourtesyConnect/CourtesyLimit, an automated overdraft system provided by CourtesyCloud Management Solutions, LLC (a BSG Financial Group company), Velocity Solutions, LLC now provides a cloud-based courtesy overdraft management system. The software and processes allow financial institutions of all sizes to automate their overdraft service and manage it as a line of business, hoping to enhance account holder experience, compliance and revenue. CourtesyLimit, a risk-management component, provides data analysis capabilities to create overdraft limits tailored to an individual’s repayment capacity.
“This acquisition allows us to provide our overdraft solutions to a broader base of financial institutions, including those who are seeking a cloud-based solution,” said Christopher Leonard, CEO of Velocity. “We are better equipped than ever to help financial institutions of all sizes achieve the optimal balance of revenue, service and compliance — the three essential pillars of a complete and proactive overdraft management system.”