Every week we bring you global thought leadership, in the form of recent opinion pieces, background information behind recent news and content analysing the bigger trends. We believe this will help you get a grip on the bigger picture, and different ways of looking at developments, to be prepared to write your own future. Happy reading!
According to Satya Swarup, Product Manager at Unisys, the “Contactless Banking” trend is on the rise, facilitated by Covid-19 pandemic. Digitalization is beginning to happen on a larger scale, forcing banking institutions to fastly adapt and adjust their offerings. As such, the post pandemic climate is changing the account opening and onboarding processes, emphasizing the importance of omni-channel services, video banking and fraud prevention systems. Read more
New regulatory frameworks are in store for small banks, with a focus on liquidity visibility and improved cash management processes. According to the old practices, demonstrating data governance for small banks was not a primary concern, mainly due to lack of resources and limited scope from the regulators. However, regulators are now requiring proof and evidence of data governance. In addition, a new initiative forces banks to conduct regular stress tests, and also smaller financial institutions are obliged to conform. The Bank of England highlights that regulator stress tests as well as concurrent bank stress tests were limited prior to the 2008 crisis, but are now a core part of the regulatory toolkit. Read more
Central cryptocurrency registry
According to James Junwoo Kim, CSO/Co-founder of CrossAngle, cryptocurrencies and blockchain data are offering numerous advantages for their users, such as value exchange, the ability to generate income, viable investment options and data exchanges. Before crypto can gain the status of a fully institutionalized asset class, the lack of information in the form of disclosures is still an obstacle that needs to be overcome. One solution can be the implementation of a corporate global registry, which can provide the necessary transparency regarding valuations and also crypto company actions. Read more
Paypal’s move into cryptocurrencies
In a recent article by David G.W. Birch, author, board-level advisor and commentator on digital financial services, the latest PayPal course of action to support cryptocurrencies raises follow-up questions, such as who is the target audience which will be using the new PayPal service. Due to the fact that cryptocurrencies such as Bitcoin are not currently implemented for goods and services, the payment transaction opportunities with such currencies are irrelevant. In addition, Chainalysis and the New York Times report that in the final quarter of 2019, cryptocurrencies spent on “dark markets” rose two-thirds, reaching a new high, and were mostly related to activities such as drugs, ransomware, tax evasion and money laundering. Read more
Combating Cyber attacks
According to Nicole Jass, Senior Vice President of Small Business and Fraud Products at FIS, Covid-19 further gave rise to cyber attacks, taking companies by surprise and catching them unprepared. The presented analysis highlights a variety of techniques to help businesses combat fraud, with best practices relying on AI-based machine learning fraud solutions, increasing capabilities around device fingerprinting and behavioral data, and focusing on user authentication. Read more
InsurTech & Post-Covid-19
According to Stephanie Braun Kramer, Director of Product Management at Zendrive, the insurance industry has provided numerous opportunities and navigation tools for its clients over time, helping them cope with crises and disasters. With the Covid-19 environment and the global health crisis, the insurance sector has a prevalent role and demonstrated resilience and adaptiveness. InsurTech is now focused on taking a preventive approach instead of a reactive one. As such, the business model adopted by insurance is revolving around retention and tech-powered pricing models. Read more
Asset Management & Climate Emergency
According to Sir Chris Hohn, founder of TCI Fund Management, all asset managers should focus on adopting a policy concerning climate action plans. The issue arises from many funds that claim to prioritize environmental, social and governance (ESG) concerns, but fail to do so in practice. Hohn further urges asset managers to take a more proactive and assertive approach, and attracted the attention of one of the largest pension funds in the UK, which agrees with the TCI’s policy. Read more
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