As open banking continues to have a substantial impact on consumer financial services, the balance of power has tilted further away from established institutions and more towards financial technology innovators – from small fintech startups to the internet giants.Open banking essentially clears the way for any vendor with a vision to redesign the consumer finance management and payment experience. It means traditional financial institutions can no longer rest on their laurels if they want to stay relevant to current and prospective customers. Gartner suggests that, within a little over a decade, 80 per cent of established players will go out of business or suffer other ill effects as more attractive alternatives enter the market.Customers are hungry for change, too. Big tech companies such as Amazon or Google bring new expectations, with high-quality customer experiences and a frictionless mobile journey. This has elevated consumer expectations and makes it more difficult for … [Read more...] about Disruption in financial services: How banks must respond
Tradition financial services
It’s easy to notice that the world of mobile financial services is always evolving. As we stand on the cusp of 2019 we have begun to consider which trends will rise to the top and shape the new year. Even more importantly, we must consider how these trends will affect the global unbanked population.Unbanked and underbanked individuals around the world have long heard ‘NO’ from operators and financial institutions. As a result, around 80 per cent of the population in emerging markets is on prepaid mobile plans with almost no access to financial services, or a financial identity. They have not been offered the opportunity to build credit in a way that is feasible for them. However, in 2019 we will begin to see more opportunities that will make this possible. The most noteworthy will come from mobile operators and financial service providers as they will begin competing, partnering and engaging in new and exciting ways. Here’s how:Financial services: Telcos are … [Read more...] about 2019: The year of the telcos and mobile financial services
Bank transfers, debit cards, credit cards, e-wallets and mobile wallets: all are used to process the one hundred and twenty-two billion digital transactions made each year in the European Union.And this staggering figure is expected to rise year on year, meaning the payments industry simply has no choice but to adapt its processes to cope with the increasing number of transactionsFortunately, if not entirely coincidentally, this explosion in the volume of digital payment co-coincides with the rise of viable Artificial Intelligence (AI). At its simplest, the ubiquity of AI enables digital payments by allowing consumers to more easily buy goods and services through services such as digital assistants or recommendation engines, which run on machine learning.But this explosion in the number of the digital payments creates a problem which will also need AI to solve. The increase in web-payments, brings with it the unavoidable risk that volumes of digital-payment fraud will also rise. And … [Read more...] about How will artificial intelligence ultimately benefit the financial services sector?
(Reuters) - Cognizant Technology Solutions Corp on Tuesday blamed weakness in its financial services sector for dismal revenue and profit forecasts for the fourth quarter that missed analysts’ estimates. The Cognizant logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. Picture taken October 19, 2017. REUTERS/Chris Helgren Shares of the IT services firm fell 3 percent, with the company also cutting the top end of its full-year revenue forecast. While services to big banks remain its biggest source of income, revenue from the sector rose just 2.6 percent to $1.46 billion in the third quarter, missing expectation of $1.50 billion. In the past few quarters, Cognizant’s reliance on financial services sector has been hurting its overall revenue growth. “Our guidance does not anticipate any significant recovery in banking in the fourth quarter,” Chief Financial Officer Karen McLoughlin told Reuters. … [Read more...] about Cognizant sees weak fourth quarter as financial services growth drags
The integration of legacy financial services, blockchains, and the emerging class of digital assets are underway. The potential of this new open financial system is enormous, but there are still several obstacles that need to be overcome for the promises of a new financial paradigm to come to fruition. There remains a substantial market gap between traditional financial services, mainstream investors, and the cryptocurrency ecosystem. Although access to digital assets is available on multiple cryptocurrency exchanges, the current status quo is often inconvenient. Unclear regulatory environments burden exchanges that operate as fiat on-ramps that require slow KYC/AML compliance procedures. Further, they offer much fewer assets than their crypto-to-crypto exchange counterparts. Blockchain and cryptocurrency news minus the bullshit. Visit Hard Fork. CLICK IT Crypto-to-crypto exchanges such as Binance come with their downsides as well, however. These exchanges largely operate outside … [Read more...] about Improving financial services in digital asset markets using new technologies