Nothing can stop the growth of African fintech—or so it appears. Investment in African startups quadrupled from 2017 to 2018, to tally $725 million across more than 50 deals. Fintech companies accounted for 93 of those deals, including half of the top 10 deals, and 40% of the total funding generated last year. Read the full story on Global Finance.
The reasons for banks to not embrace faster payments schemes are quickly dwindling. But many are still watching from the sidelines. Various government initiatives in regions such as Australia, Hong Kong and the U.K. have acted as catalysts for creating faster payments rails. Similarly, policies like the EU’s PSD2 incorporate open banking and provide third-party developers equal footing in developing financial technology. Read the full story on PaymentsSource.
Generation Z, whose older members are already entering the workforce, is using digital technology more than any other age group — including millennials. Gen Z’s preferred digital technologies include P2P and B2C digital payments, as opposed to more traditional payment methods. And further, one-third of the Gen Z consumers polled in the survey have never even used a paper check. This group sends and receives money digitally, uses digital apps to manage their budgets and financial accounts, and rarely steps foot inside a brick-and-mortar branch. Read the full story on PaymentsSource.
In the early days of financial technology (fintech), there was a somewhat distant relationship between fintech startups and traditional banks. Some spoke of how fintechs were going to “disintermediate” banks. Read the full story on Microsoft Industry Blogs.
Banks face some big challenges in the year ahead, according to American Banker, which listed ways technology will change banking in 2019. Some of the steps look pretty basic, which may reflect on the problems with legacy systems, and suggests some of the advantages new banks could enjoy with new technology. Read the full story in The Financial Revolutionist
The idea of sharing data and exposing APIs to third parties was usually routinely dismissed out of hand by financial institutions. But that’s beginning to change, as both regulatory and consumer demands are moving the world in the direction of open banking. Read the full story on Global Banking & Finance Review.
Next-generation payments software technology provider Episode Six today announced Dai Nippon Printing Co., Ltd. (DNP), one of the world’s largest comprehensive printing companies, will license its software for use in a new and innovative Japan-based payments program. With this partnership, advanced ledger and transaction management capabilities offered through Episode Six are being introduced to the broader Asian market, spearheaded by DNP’s adoption. Read the full story on Yahoo Finance.
Millions of retail banking customers already use fingerprint and facial recognition logins for their accounts. Corporate banking clients increasingly want the same features in their enterprise tools too. Read the full story in American Banker.
What’s the holdup on utilizing technology to expedite B2B payments? The short answer is: Change is hard. But, thankfully, due to global regulatory initiatives we can expect financial institutions to adopt new B2B tech sooner rather than later. Read the full story on PaymentsSource.
As the European Union launches its open banking initiatives, EU citizens are already becoming accustomed to further transparency on part of their banks. Agencies in the U.S., however, have yet to adopt such regulations, which is why open banking in the country will be driven by consumer preference. Read the full story in Bank Innovation
The EU Revised Payment Services Directive, or PSD2, came into effect January 2018. While this expansive regulation includes numerous updates, the requirement for financial institutions to participate in an open banking system is arguably the most disruptive. PaymentsJournal
In 2018, China, Japan and South Korea are poised to lead the charge for exciting innovations in fintech . As the year unfolds, here are three trends coming out of Asia to keep an eye on. Read the full story in PaymentsSource.