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Current Banking Digest

Denis OstapchenyaHead of Financial Services at Andersen

Banking vs COVID-19

2021, 03 20

Visa, Mastercard delay credit card swipe fee increases amid criticism from lawmakers

Visa Inc. V, -6.24% and Mastercard Inc. MA, -2.86% are postponing planned credit-card fee increases that were set to kick in this year after the plans drew criticism from lawmakers. Citing the continuing effects of the coronavirus pandemic on businesses, Visa and Mastercard said they will hold off on increasing interchange fees for merchants until next April.

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As cash use falls, banks look to ATM pooling

As cash use falls, banks look to ATM pooling. With the Covid-19 pandemic accelerating the long-term decline in cash usage, banks are increasingly looking to pool or share their ATMs as a way to save money, according to RBR. Although there has been a prolonged decline in demand for cash in several countries, a trend that has been thrown into sharp relief by the pandemic, banks still need to offer cash services.

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Neobanks: A Fintech Solution For Underbanked Communities

Neobanks: A Fintech Solution For Underbanked Communities. 2020 brought unprecedented financial challenges to millions of unemployed and lower-income individuals. But it has also given rise to a fintech solution that may permanently alter and improve the way America banks.

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Digital Banking and FinTech

2021, 03 20

Digital Banking: The time is ripe, don't spoil the opportunity

The time is ripe, don’t spoil the opportunity. After mixed success in the late 1990s and early 2000s, digital banking has finally arrived. Buoyed by changes in customer behavior and maturing technology, digital banks are now leveraging a superior client experience and structural cost advantage to rapidly gain customers and deposits. Disruption does not always equal success, however. Without a compelling customer value proposition, sound monetization model and sharp execution, digital banks are more likely to destroy value than make profits at scale. In this paper, we explore why the conditions are now right for digital banking, review current market plays and share key lessons for successfully building a digital bank.

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Revolut leaves Canada

UK-based fintech player Revolut is leaving Canada after failing to exit beta in the country. Revolut, which has been aggressively expanding around the world over the last two years, began a Canadian beta more than 18 months ago but has now emailed users in the country to tell them that this has been ended.

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Cheese raises $3.6M for its digital bank aimed at the Asian-American community

Today, Cheese announced the launch of its digital banking platform that is aimed at primarily serving the Asian-American community. Co-founder and CEO Ken Lian came to the United States from China in 2008 to attend college. In the years after his move, Lian said he paid thousands of dollars in bank fees and got rejected “multiple times” for basic bank accounts, despite having a FICO score over 800.

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The center for all things fintech in Canada

The center for all things fintech in Canada. Layial El-Hadi, Executive Director at Fintech Cadence in Montréal, outlines the many ways her organization is supporting and promoting Canadian fintechs.

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Forging your own challenger bank: Pepper by Leumi Group

Forging your own challenger bank: Pepper by Leumi Group. Michal Kissos Hertzog, CEO of Pepper, Bank Leumi’s digital bank, discusses how the Israeli innovator keeps exceeding their goals year after year, all while putting data to use for their customers.

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Neobanks Come for Kids and Teens

Neobanks and digital banks have set new standards in customer experience and expectations, pushing incumbents to get out of their comfort zone and innovate. After accumulating an estimated 39 million users worldwide, neobanks are now coming after the next generation, launching child- and teen-focused offerings. Fintech intelligence startup WhiteSight identifies more than 50 neobanks providing products and services targeted at an audience below the age of 18 years old. The group includes over 40 ventures that focus solely on children and teenagers. The rest cater to broader customer segments but have launched kids-focused digital offerings. These include Current (USA), Naraja X (Argentina), Revolut (UK), Lunar (Denmark), Kakao Bank (South Korea) and Bettr (South Africa).

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The Ultimate Guide to Fintech Data

The Ultimate Guide to Fintech Data. In January of 2020 Chase announced plans to block fintech companies from screen scraping data on their website. Screen scraping, the process of gathering data from one app and displaying it in another, has been a common practice for decades but Chase expressed concerns around potential fraud and a lack of transparency about who was scraping the data and for what purposes. As a result, they announced they would be replacing all screen scraping with sanctioned API channels.

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Walmart’s Fintech Ambition: A Super App, Not The ‘Bank Of Walmart’

Walmart’s Fintech Ambition: A Super App, Not The ‘Bank Of Walmart’. Giant retailer Walmart has made a couple of big announcements recently regarding its plans to create a financial technology—or “fintech”—business unit.

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Is India on the cusp of a new fintech revolution?

Is India on the cusp of a new fintech revolution? India has liberalised regulations relating to geospatial data and maps. The sweeping changes are radical and Prime Minister Narendra Modi may have unleashed a trillion dollar fintech opportunity.

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Fintech Spotlight: JPMorgan Chase Looks To Digital Banking Innovation

One driving force behind innovation is disruption. That’s according to Allison Beer, the Chief Product Officer and Head of Customer Experience and Digital for JPMorgan Chase & Co’s (NYSE: JPM) digital banking and innovation arm. In a conversation with Benzinga, Beer spoke about emerging fintech trends, and how Chase is positioning itself as a holistic destination for digital spending, saving, investing, and borrowing.

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Three things fintech gets wrong about customer support

Three things fintech gets wrong about customer support. Fintech products are gaining popularity and pose real competition to traditional banking. According to the 2019 FIS PACE study, 73% of consumer banking interactions are digital. Fintech startups have already raised a record $100M in Q2 2020 and, apparently, have cracked the secret to success — better CX and personalized customer service.

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Top FinTech Banks in 2021

Top Fintech Banks In 2021. The way that we look after our money has changed. It used to be that there were a few power-players in the banking world and that was what we used. We used to have to go down to the physical premises, have meetings and sign many forms to sort out an account. The bank used to have physical premises and was the place you needed to go to pay in cheques or money and to get new bank cards. You also only had one form of currency. This has all changed. We now have cryptocurrency as well as other types of finances such as gsiexchange.com. Plus, the evolution of Fintech has meant that there are now more online banks than ever, all of which are completely revolutionizing the way that we use and spend our money. Here we take a look at some of the big players in FinTech banking and how they can help you manage your money…

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Payments and Transfers

2021, 03 20

Stripe has raised a new round of funding to accelerate momentum in Europe and reinforce enterprise leadership

Stripe, which builds economic infrastructure for the internet, has raised a $600 million (€500 million) funding round at a $95B (€80B) valuation. Primary investors include Allianz X, Axa, Baillie Gifford, Fidelity Management & Research Company, Sequoia Capital, and Ireland’s National Treasury Management Agency (NTMA). The company will use the capital to invest in its European operations, and its Dublin headquarters in particular, support surging demand from enterprise heavyweights across Europe, and expand its Global Payments and Treasury Network.

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Payoneer Selects Mastercard to Offer Digital Solutions to Small and Mid-Sized Businesses

Payoneer Inc., the global payment and commerce-enabling platform which powers growth for millions of digital businesses worldwide, today announced a multifaceted relationship with Mastercard. Beginning with the Payoneer Digital Purchasing Mastercard, tailor-made for SMBs, eCommerce sellers and freelancers worldwide, Payoneer and Mastercard will work closely to better meet the needs of the B2B market.

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Number of e-wallet users set to exceed 4.4 bln by 2025, Juniper Research study finds

A new study from Juniper Research has found that the number of unique e-wallet users will exceed 4.4 billion globally in 2025, rising from 2.6 billion in 2020. The study also shows that mobile wallets are leading this 70% growth, as mobile payments scale across geographical and vertical markets. The increasing alignment between in‑person and remote commerce channels is leading to a greater usage of e-wallets, with online wallet use confined to high-value purchases or complex bill payments.

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Mercedes launches service for digital payments at the pump

Mercedes has announced the launch of the ‘Fuel & Pay’ service for digital payments at the pump. The service is free of charge for Mercedes me users and offers users the ability to make digital transactions, removing the need to enter the filling station or to pay by card at the pump. The service can be controlled via the Mercedes me app as well as from inside the vehicle via the MBUX infotainment system.

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French adoption of contactless payments grew significantly in 2020

French adoption of contactless payments grew significantly in 2020. The global pandemic durably changed and accelerated payment methods. Card usage becomes dominant in daily purchases according to Groupement des cartes bancaires (CB).

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Axis Bank teams with Thales and Tappy to roll out contactless payments wearables

India’s Axis Bank has launched a range of wearable contactless payment devices using technology provided by Thales and Tappy Technologies. The bank’s Wear ‘n’ Pay range includes wristbands, keyrings and watch straps as well as devices that can be incorporated into existing accessories. They are available “at a fee point of Rs750 [US$10], making it affordable for customers,” Axis says. “The wearables are directly linked to the customers’ bank account and function like a regular debit card,” the bank explains. “This allows purchases to be done at any merchant who accepts contactless transactions.

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US fintech Sincere to target “pet parents” with debit cards

Sincere Financial, a Californian start-up, is gearing up to launch a debit card for “pet parents”. The fintech intends to wrap the card in pet-related rewards, covering things like pet food, vet bills, and rescue shelters. Merchant partners listed on Sincere’s website include Walmart, Amazon, Target, and Walgreens. As well as smaller, pet care-focused brands, such as Chewy and PetSmart. Customers will be able to redeem their points in return for cashback at these outlets. Each point is worth $0.01 and will only apply to personal purchases – i.e. transactions which aren’t bulk orders.

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Rush Gold launches mobile card to pay with gold in real-time

Fintech platform SendGold has rebranded to Rush Gold as it launches a mobile Mastercard in partnership with EML Payments. Rush says users can easily manage their gold through its app. The prepaid card enables Rush’s Australian users to pay “with real gold in real-time”. The firm’s services are available in 13 countries, and it claims to have grown by 36% over the last 12 months. Rush users own the title to gold “locked in an Australian vault” and insured by Lloyd’s of London. Rush says it can be easily managed through its app, alongside performance trackers.

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Cryptoeconomics

2021, 03 20

Goldman Sachs customers' demand for bitcoin rising: COO

Goldman Sachs Group Inc. is exploring how it can meet rising customer demand to own and invest in bitcoin, while still staying on the right side of regulation, bank President and Chief Operating Officer John Waldron said on Wednesday. “Client demand is rising,” Waldron said. “We are regulated on what we can do. We continue to evaluate it ... and engage on it.”

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WSJ video shows China’s digital yuan in action in stores

The Wall Street Journal has posted a video report showing Chinese consumers in the city of Chengdu using the country’s central bank digital currency (CBDC) to make in-store NFC and QR code payments from a digital yuan wallet on their mobile phone.

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Jamaica to launch central bank digital currency in 2022

Jamaica is to pilot a central bank digital currency (CBDC) over the course of this year and begin rolling it out in 2022, the country’s minister of finance Nigel Clarke has revealed during a budget speech. The Bank of Jamaica’s CBDC will be exchangeable with the physical Jamaican dollar on a one-to-one basis and is being introduced as part of the government’s plans for the digital transformation of the economy, the minister explained. “The government is concerned about the size of the unbanked population. Access to financial services is essential to improving productivity and wellbeing,” Clarke said. “There are individual benefits and there are also spillover benefits to the society as well.

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AI and BigData

2021, 03 20

Welcome to the fourth edition of the AI Index

Welcome to the fourth edition of the AI Index. The 2021 AI Index report is one of the most comprehensive reports about artificial intelligence to date. This latest edition significantly expands the amount of data available in the report, which was drawn from a broader set of academic, private, and non-profit organizations for calibration. The report also shows the effect of COVID-19 on AI development from multiple perspectives, including how AI helps with COVID-related drug discovery and the effect of the pandemic on hiring and private investment.

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HSBC taps Google Cloud for call centre AI

HSBC taps Google Cloud for call centre AI. HSBC has enlisted Google Cloud to build a global call centre AI chatbot that helps employees cut down on the time they spend on manually intensive queries. Working with the customer engineering team at Google Cloud, HSBC built Operational Resilience and Risk Application (ORRA), a FAQ and document search-enabled chatbot.

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Deutsche Börse tests quantum computing for risk models

Deutsche Börse has piloted the use of quantum algorithms to compute risk models, finding that the technology can bring down the time required for simulations from years to hours. The exchange operator worked with JoS Quantum to develop a quantum algorithm that could tackle some of the limitations facing its risk models for forecasting the financial impact of adverse external developments such as macroeconomic events, changes in competition, or new regulation.

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Tinkoff integrates its voice chatbot Oleg into Clubhouse

Tinkoff integrates its voice chatbot Oleg into Clubhouse. Tinkoff has integrated its assistant Oleg into Clubhouse, being one of the first voice assistant, speech recognition and synthesis solution available in this audio-chat social network. Oleg will be a full-fledged user helping room creators to communicate and moderate discussions in Clubhouse by using its text-to-speech and speech-to-text capabilities.

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Identification

2021, 03 20

Russian supermarkets let customers make contactless payments ‘with a glance’

Customers at more than 50 branches of Russian food retail group X5’s Perekrestok supermarkets can now pay for their purchases at self-checkout devices “with a glance” using a biometric payments solution that uses 3D face recognition technology.

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OCBC launches facial recognition at ATMs, region’s first

Singapore-based OCBC Bank has enabled face verification for ATM banking transactions, in Southeast Asia’s first initiative of its kind. The biometric tool will be first used for account balance enquiries – piloted by eight ATMs. It will be gradually rolled out across the bank’s domestic network of 550 ATMs and expanded to cash withdrawals.

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Security and Criminal

2021, 03 20

Credit Suisse shakes up funds business under Greensill regulatory glare

Credit Suisse shakes up funds business under Greensill regulatory glare. ZURICH (Reuters) - Credit Suisse is overhauling its asset management business as it faces regulatory investigations into its dealings with Greensill Capital, warning on Thursday that its results and client confidence could be hit by the finance firm’s collapse.

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India to propose cryptocurrency ban, penalising miners, traders - source

India will propose a law banning cryptocurrencies, fining anyone trading in the country or even holding such digital assets, a senior government official told Reuters in a potential blow to millions of investors piling into the red-hot asset class. The bill, one of the world’s strictest policies against cryptocurrencies, would criminalise possession, issuance, mining, trading and transferring crypto-assets, said the official, who has direct knowledge of the plan.

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Other News

2021, 03 20

Goldman Sachs analysts complain of long hours, unrealistic deadlines

Goldman Sachs analysts complain of long hours, unrealistic deadlines. NEW YORK (Reuters) - As Goldman Sachs Group Inc cashes in on a boom in market activity, a group of first-year analysts have warned senior management that they are overworked and will quit within six months unless conditions improve, according to an internal survey circulated online.

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CommBank steps into BNPL fray

CommBank steps into BNPL fray. Commonwealth Bank of Australia has waded into the competitive buy now, pay later market, competing with local juggernaught Afterpay, and Klarna, in which it has invested $350 million. Set for roll-out to its customer base of four million consumers in mid-2021, CommBank's product will undercut Afterpay by not charging merchants more than their current card transaction fees to accept instalment payments.

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Andersen’s Banking Digest Editor

Remaining in the focus of all cutting-edge developments in the financial field and maintaining permanent communication with the industry leaders, our financial services experts always have news to share

Denis Ostapchenya

Denis Ostapchenya

Head of Financial Services at Andersen

My name is Denis. I am the Head of Financial Services at Andersen. We are engaged in the development of IT solutions for banks, investment, insurance, and FinTech companies. If you have any questions, contact me and I will be glad to consult you.

Make sure you always receive credible information and up to date news about the current state of the financial sector

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