What we concluded is a waving green flag for digital transformation. Digital maturity is increasingly associated with higher market valuations, indicating that digital leadership is an important determinant of economic success. The higher valuations are also justified by better operating economics and return on capital. But unlike many digital-native businesses, improvements in operating economics are being driven by efficiency, not differential revenue growth. Our research shows that the more digital a bank becomes, the more …

Biggest changes in digital banking are just ahead

It’s often hard to truly understand the sudden changes that are about to occur in an industry, even if that change is imminent and predicted. If you were to have made a prediction some years ago that “e-commerce is going to radically alter the retail landscape” you would have been right, yet your understanding of that phenomenon would have been somewhat removed and academic. But now that we are well into the unfolding of that …

Payments: Looking to the future – instant, accessible, ubiquitous [SWIFT paper]

Innovations in domestic retail payments have multiplied at a gravity-defying pace in recent years, driving unimaginable improvements. Entire domestic markets have completely transformed the way they shift value. With goods and services moving more quickly and across greater distances than ever before, value needs to shift further, faster. Value transfers must be friction-free. They must also be safe, secure and compliant. While banks sit at the centre of this, the core architecture is key. It …

The digital banking revolution is here. So why are so few people putting their salaries into app-only bank accounts?

consumers are still hesitant about putting significant amounts of money in these accounts, and making them their primary ones. Although there are signs that this scepticism will soften over time as the technology and brands becomes more well known, but it’s clear that fintech challengers also have a way to go in convincing consumers that they are a safe, long term option for their money.

The Mobile Revolution in Banking: From China to the US

The Chinese digital ecosystem “blend[s] social media, commerce and banking—all run by two of the world’s most valuable companies [Alipay and WeChat Pay]. That contrasts with the U.S., where numerous firms feast on fees from handling and processing payments. Western bankers and credit-card executives who travel to China keep returning with the same anxiety: Payments can happen cheaply and easily without them.”

How the self-employed will drive the future of UK banking

The number of microbusinesses and self-employed people continues to climb steadily – despite a strong labour market and many full-time opportunities – as people embrace more flexible schedules and make use of better technologies for remote work collaboration. However, most traditional retail banks have been slow to target this group, which is generally less interested in a large branch network and dissatisfied with digital.

Banks Waking Up to Fintech Threat Throw Billions Into Digital

In a matter of years, digital banks like Revolut Ltd., Starling Bank Ltd. and Monzo Bank Ltd., all based in London, have attracted several million clients by offering perks like ultra-low-cost money transfers and pre-paid debit cards with no foreign transaction fees. Yet even though people open secondary accounts with these neo-lenders, they’re still reluctant to give them their salaries—let alone make them the main conduit for their retirement savings or mortgages.

BBVA goes DIY on digital banking with Domo analytics

Multinational 186-year-old banking group BBVA wants to evolve from its legacy heritage to a digital company, by designing its tech around the needs of its customers and removing the pain points around managing money. BBVA wants to do this by empowering customers to have a do-it-yourself banking experience in which they can choose where, when and how they bank. To get this right, the bank needed a deep understanding of customer needs and desires as they change over time.

Fending Off Tech Giants Through Digital Transformation» 

Tech titans like Google, Amazon, Facebook and Apple are setting their sights on the financial services sector, blurring the lines between industries and rolling out financial services that offer consumers increasingly competitive banking experiences. These tech companies are becoming a disruptive force in the banking industry as they grab market share in payments, consumer loans and even small business loans. Tech companies challenging industry status quo Banks are starting to feel the impact of tech …

U.S. Fintech Firm to Buy Worldpay for $35B in Biggest Ever Digital Payments Deal

Fidelity National Information Services Inc. (FIS) agreed to buy Worldpay for about $35 billion on Monday, with the U.S. financial services provider striking the biggest deal to date in the fast-growing electronic payments industry. The financial technology sector is consolidating fast, with global payments set to reach $3 trillion a year in revenue by 2023 as more people switch from cash to digital payments for online and high street sales, consulting firm McKinsey predicts.

Point-Of-Sale (POS) Financing

POS financing certainly isn’t new. In 2016, merchants in nine different retail categories saw more than 160 million POS loan applications—only 53% of which were approved More than a quarter of consumers have used point-of-sale (or instant) financing when shopping online. More importantly, nearly half would like to be presented with the option to get instant financing when shopping online.

Open banking – build it and they will come?

When open banking began on 13 January 2018 with the launch of PSD2, the fintech twitterati were abuzz with predictions of the radical disruption of financial services. Industry pundits spoke about customers walking through a promised land of meaningful financial insights and competitive products. Not much has happened since other than a few small enhancements from the big banks and several fintech apps released. For example, Commerzbank has used open banking to tap into the Internet of things (IoT) …

Digital first in banking: Going beyond the interface

Think of the changes in the past ten years in terms of how we deal with our banking needs. We moved from telephone banking to online or internet banking. The iPhone became more popular and apps got better and more secure. It is hard to remember how we managed with the rudimentary tools of ten years ago; so turn on your imagination and wonder what banking will be like ten years from now. How should …