MIAMI – On July 10, 2018, the Bank Administration Institute (BAI) announced that NovoPayment was a finalist in two Global Innovation Award categories: Innovation in Customer Experience and Disruptive Innovation in Financial Services for the company’s entry, Embedding Financial Services in a Gig Economy Value Chain.
Now in its eighth year, the BAI Global Innovation Awards recognizes industry leaders and showcases what leading financial services innovators in all regions of the world are doing to deliver new value to customers and employees and improve efficiencies and profitability for their organizations.
The company’s submission showcases how its API-powered technology allows banks and financial institutions to dynamically deliver financial services and frictionless user experiences to their gig economy clients, without the need to alter their core systems or sacrifice security and compliance. This innovation allows a growing number of bank clients with platform-driven businesses to pull important instant issuance and mass payout services on demand, and with the scalability they require. As a result, banks are able to capture new deposits and transactional revenue, and deliver highly differentiated services at a fraction of the cost of traditional products.
ABOUT THE AWARDS
BAI’s Global Innovation Awards is the industry’s most prestigious awards program featuring the most transformative solutions in the financial services industry worldwide. This year’s program features advancements in artificial intelligence, innovative touchpoints, customer experience and more. Each nomination is evaluated by a panel of global financial services leaders who thoroughly review each application to determine the top submissions. The judges weigh each innovation on originality and impact on consumers and the industry.
The BAI Global Innovation Award winners will be announced in August and celebrated at BAI Beacon in Orlando, Fla., on Oct. 9–11.
BAI is a nonprofit organization providing research, training, and thought leadership events for the financial services industry. Its members include national and global banks, credit unions, mortgage and auto loan providers, money service businesses, and larger lending institutions.
If recent interest in FinTech-bank collaborations is any indication, many financial institutions in Latin America will not wait-and-see what happens with the rollout of open banking and API rules in Europe, Mexico and elsewhere before kicking off their own initiatives. And, they shouldn’t. That’s because open banking right now isn’t about waiting for the music to start, it’s about taking the necessary first steps today to become familiar with the methods and protocols that will dominate financial services for the next decade.
Around the region, several financial institutions have started, or are narrowing down projects and partners that can deliver proofs of concept and quick wins in the near-term. It’s not a stampede by any means, but rather a discernable and deliberate pattern: pick a project that’s not overly ambitious, a partner that you like, map out the roles and requirements and get started.
The reason is simple: these projects illustrate and ground abstract ideas into concrete experience, and rally people in ways that are critical to competing in the future. They turn skeptics into informed, engaged and active partners. And, the more urgency and watchful eyes they receive from a financial institution’s leadership, the more likely they are to move quickly and succeed.
Different Project Types
Government-driven open banking initiatives are about stimulating innovation, competition and financial inclusion. However, this can include a wide range of project types from instant payments to robo-investing to QR enabled mobile P2P payments.
The types of projects we’re hearing about today vary and the terms used to describe them don’t always shout “open banking”, but make no mistake, if it involves APIs and collaborating with third parties to deliver financial services, it’s probably open banking.
From our company’s point of view, we prefer and recommend projects that fit the following criteria: services with a track record or clear potential to scale rapidly, one that you can pilot with an existing and able client, and one that clearly falls into the bright lines of current rules (minimal legal exposure). By nature, these tend to be business customer-oriented services (though not always) like digital account origination, real-time payments, mass disbursements, and B2B2C plays like digital lending, to name a few.
And, the Fintech B2B trend seems to be catching steam as evidenced by reports of Santander’s plans to launch a digital business banking service in the UK, and BBVA becoming the first global bank to issue a loan, using distributed ledger from negotiation to signature, cutting the closing process of €75m corporate credit from days to hours.
Innovate Via Micro-Wins
Innovation in incremental doses is nothing new, but quick-win projects can face resistance within organizations that are incorrectly interpreting them as competing with other efforts. For example, an initiative to define a new system architecture road map isn’t necessarily in conflict with an open banking project. Today’s API enabled, wrap-and-extend approaches permit those projects to happen in concert. And besides, initiatives that appropriately leverage existing assets while improving digital agility are typically a good idea.
Commercial Banking Customers Aren’t Happy
Let’s be honest. Most banks in any given market have fairly similar business products. It’s hard to point to many areas where one bank has a dramatically better product than another. What happens when that changes? Answer: They take away business at an alarming rate. This is made worse by that fact that more tech-savvy and innovative corporate customers aren’t exactly wowed by current services. A recent study of corporate treasurers found they are quick to move away from banks that don’t understand and can’t meet their digital requirements.
In fact, when it comes to imagining the corporate bank of the future, McKinsey & Company advises corporate banking leaders to pay close attention pointing out that digitizing processes from end-to-end increases customer satisfaction, building customer-centric journeys, and suggests it may be time to redefine some product offerings and migrate them to new platforms.
API Economy and Platform-Driven Business
Case in point: gig economy and other digital platform companies have been providing a clinic on how real-time systems have the ability to dynamically pull financial services and rapidly scale volumes with little need for human intervention or traditional bank delivery models. Anecdotally, we’ve seen deposits growing at a rate of CAGR +2000% in such use cases. That’s not a typo.
How often do bankers see a product do that? Answer: not very often. And when they do, I can tell you that the conversation about open banking projects takes on a decidedly different tone and sense of urgency.
The secret to these initiatives is almost always a combination of powerful APIs, orchestration and clearly defined roles from the beginning. Being realistic as to what each side party in a collaboration can reasonably deliver in a given timeframe is key. Stretched IT teams that overpromise are not conducive to “quick” or to “wins”.
So, pick a song and a dance partner that complements your abilities and don’t wait for regulations to spur your open banking efforts. Like the saying goes, accepting the future hurts once. Delaying it hurts forever.
As published on Forbes.
Visa (NYSE:V) has announced a partnership with NovoPayment, a leading enabler of digital financial and transactional services, to facilitate the implementation of payment solutions for Business to Business (B2B) transactions in Latin America and the Caribbean. The companies will work in three key B2B areas: solutions for the business traveler, solutions for accounts payables and receivables; and accelerating Visa’s bank clients go-to-market strategies.
The first project under the new partnership has launched in Colombia, where Visa, NovoPayment and a local bank are enabling real-time payments in the urban delivery sector through a suite of APIs that provide courier fleets the ability to electronically procure goods from merchants on behalf of customers through dynamically created and loaded Visa accounts. This new model, integrated by NovoPayment’s platform, gives urban delivery businesses greater operational agility and scalability in a fast-growing and digitally-driven category.
Another project advancing under this new partnership, aims at simplifying the payment of independent drivers in the expanding urban mobility and shared transportation sector. Under this model, drivers will use Visa accounts to efficiently receive payment for services rendered and to manage day-to-day expenses.
Through the integration with Visa’s platforms and API’s, this partnership with NovoPayment offers Visa clients – banks, merchants and acquirers – new payment functionalities and the ability to accelerate the adoption of electronic payments in the region.
“Through our open collaboration strategy, we partner with fintechs in the region to accelerate the adoption of new technological capabilities that complement our payment functionalities and those of our bank and merchant partners,” said Allen Cueli, Vice President of Product Solutions and New Enablers. This is the first initiative resulting from a broader partnership with NovoPayment, focused on the deployment of a number of projects including prepaid enablement, API integration as well as B2B solutions,” he concluded.
The partnership with NovoPayment aligns with Visa’s overall objective to move businesses and consumers from cash to digital forms of payment. For Visa, a culture that relies less on cash provides more convenience, more security and ease of use, which translates into faster growth and greater efficiency compared to cumbersome and expensive cash handling processes.
“We work to expand the use of electronic payments across the region, to improve people’s daily lives and help businesses increase sales and operate more efficiently,” said Diego Rodriguez, Vice President Business Solutions Visa Latin America and the Caribbean. “These projects with NovoPayment allow us to extend our reach and presence in the region, through different business models, facilitating payments amongst businesses and creating frictionless business-to-business interactions,” he added.
“Ultimately, by integrating our APIs and collaborating more closely, we are able to help others deliver better customer experiences and create new value chains free of traditional bottlenecks, while capturing new money and data flows,” said Anabel Perez, CEO of NovoPayment. “Our most recent project in Colombia is a great example of the kind of interoperability and structure required in today’s platform-driven businesses and a hint of what is possible in the future,” she added.
The combined proficiencies of both companies, along with their reach, will accelerate the development and diversity of Latin America’s payments ecosystem.
LatAm may be one of the fastest growing markets for companies like Uber, AirBnB and Instacart-type delivery companies, but don’t expect that rapid expansion to reach its full potential if drivers, hosts and end customers can’t have the full user experiences that made them earth-shattering. The same goes for Amazon, Alibaba and other international digital-natives looking to turn LatAm’s huge urban centers into major growth markets.
Yes, LatAm e-commerce and m-commerce are accelerating, driven by gig and shared economy players and others who demand more agile, open and fast-scaling financial services. But, those digital-native companies are built on interconnected platforms that consume financial services very differently from traditional corporate customers.
As these companies and others engage LatAm markets, they become intimately familiar with the region’s payments pains and the drag that they (and cash) can put on scalability. More to the point, current legacy financial infrastructures present a kind of information asymmetry that threatens growth.
Maybe that’s not news, or that LatAm’s legacy core banking and payments infrastructures lack sufficient interoperability and are transforming too slowly to meet the demand for a new breed of mobile and digital transactions. However, what’s less appreciated is how that lack of flexibility is becoming a growing problem for bankers wanting to gain and retain relationships with corporate innovators and SMEs “going digital native” across almost every industry.
The Business Banker’s Dilemma
Evidence increasingly reveals that these companies are quick to change banks if they can’t get the services they want. For example, in a recent transaction banking survey by Ovum, 80 percent of respondents in countries without real-time payment infrastructures said they have considered moving main banking relations in the past year.
The question becomes this: How do banks, financial institutions and others leverage their existing technology while simultaneously gaining the agility they need to win and keep business in the emerging and inevitable digital economy?
At NovoPayment, we decided to embrace the open API movement and invested in a bank-agnostic, multi-country developer portal, making over 30 of our most important pieces of software available for free for others to experiment. We went against a long and now outdated tradition in technology and financial services of being closed and guarded, and instead opened doors that others could walk through to build on our IP and help them (and us) to further monetize our investment, without sacrificing security or compliance. What was a radical idea just two years ago, seems today – against the backdrop of open banking and broader IT trends — a rather practical move.
The Reasons Why
The idea behind the Developer Hub is to enable banks, financial institutions and Fintech’s of all sizes to better attend to their corporate customers through the kind of integration and orchestration they actually need to serve today and tomorrow’s end customers.
By lowering barriers to test concepts and deploy them on solid foundations, we accelerate not only innovation, but also the expansion and diversity of the ecosystems that we can all be a part of.
Of more immediate importance, we accelerate time to revenue for all parties which is critical for skeptical banks making their first forays into these kinds of partnerships and for whom “quick wins” and proofs of concept are critical, but is also very attractive for agile startups who by their natures must be fast and frugal with their resources.
In short, we believe the time has come for organizations across the region to concern themselves with understanding the open API movement, for the sake of their customers and other stakeholders. Our advice: make the necessary organizational and technological investments to open.
Today’s disruptors and tomorrow’s market leading companies will run on interoperable cloud platforms that talk to one another in real-time. It’s a world based on open APIs, middleware and business rules — and a world you can join more easily than you realize.
To learn more, we invite you to visit our Developer Hub and join our community at Developer.NovoPayment.com.
NovoPayment, a leading enabler of digital financial and transactional services throughout the Americas, today announced the launch of its Developer Hub, the first bank-agnostic application protocol interface (API) portal of its kind offering resources to software developers seeking payment and financial service related APIs to build new solutions, enhance existing products and accelerate their initiatives. The portal’s current 37 APIs address a diverse range of Latin American geographies and verticals including banking, service organizations, insurance, urban delivery and transportation, and travel.
With the launch of its Developer Hub, NovoPayment is releasing a number of powerful APIs including those aimed at Account Creation (individuals, enterprise, merchants, corresponding agents); Cash Transfers (cash-in and cash-out, P2P [peer-to-peer], cash disbursements and collections); Account Inquiries (account balance, recent transactions, transaction history, transactions by category, agent commission history) and Customer Support Tools (account/card verification, blocking and replacement, report lost or stolen card, automated support).
“We’re proud to be joining the open API movement and to do our part in enabling banks, financial institutions, fintechs and others in the developer community to deploy next-generation financial services and enhanced customer experiences (CX),” said NovoPayment CEO, Anabel Perez. “These tools and others to come will help enable and accelerate the digital transformation of financial services in the Americas, providing a new means for organizations to extend their digital ecosystems, positively impact their customer’s value chains and overcome many common transactional bottlenecks,” she added.
Key features and differentiators of the hub include:
The company announced that its APIs are currently available in a sandbox mode for the purpose of testing and experimentation prior to deploying in a production environment. According to the company, additional APIs will be released in the coming weeks. Interested parties are invited to visit developer.novopayment.com and request a free tour in English or Spanish.
NovoPayment, a leading financial technology service provider and member of the Endeavor network, has earned the honor of the 2017 PayAwards Best in Category in the Outstanding White-Label Platform classification. PayAwards has conferred the most prestigious recognition of excellence in payments technology worldwide for 11 years. The awards are presented annually by Paybefore, whose publications are the leading source of industry information for payments executives.
NovoPayment’s platform was selected as one of three winners in late April by a panel of experts that evaluated a stellar field of global nominees. In June, NovoPayment was awarded Best in Category after voting by the publication’s readers concluded, which was primarily comprised of industry professionals.
“This recognition of NovoPayment is an example of the world-class entrepreneurial and technological talent blossoming in Miami, and why Endeavor’s work is so important,” said Laura Maydón, managing director of Endeavor Miami.
NovoPayment’s CEO, Anabel Perez, was selected as an Endeavor Entrepreneur in December 2014 at Endeavor’s 56th International Selection Panel, held in Miami, Florida. Since then, Endeavor has supported the company by building an advisory board and facilitating access to senior business leaders with relevant industry experience.
Born of the necessity to solve many of the bottlenecks and technical challenges common to the Americas, NovoPayment’s platform facilitates the creation of new financial services and payment products. The company also provides integration of third-party systems via a secure, bank-grade and highly scalable platform, fully integrated with major ecosystem participants in six Latin American markets.
NovoPayment’s platform has earned the honor of 2017 Pay Awards Best in Category in the Outstanding White-Label Platform classification. Pay Awards has conferred the most prestigious recognition of excellence in payments technology worldwide for 11 years. The awards are presented annually by Paybefore, whose publications are the leading source of industry information for payments executives.
NovoPayment’s bank-grade platform was selected as one of three winners in late April by an expert judging panel that evaluated a stellar field of global nominees, and in June was conferred the title of Best in Class after the close of voting by the publication’s readers, mainly comprised of industry professionals.
“We’re truly honored to receive the best in category distinction and are grateful to Paybefore, the judges, and Paybefore readers for their consideration,” said Anabel Perez, CEO of NovoPayment, whose multi-country, multi-currency, multi-tenant and bank agnostic platform offers clients faster deployment, lower capital expense, greater scalability and resiliency.
Born of the need to solve many of the bottlenecks and technical challenges common to the Americas, NovoPayment’s platform facilitates the creation of new financial services and payment products, as well as the integration of third-party systems via a bank-grade, highly scalable, and cost-effective subscription model.
Field-tested, the platform is differentiated in the market by its product maturity (supports 72 branded programs representing more than two million accounts), it’s turnkey solutions (from program design to post-sales services), integration (host of APIs, web services, and proprietary interfaces), flexibility (various program types and languages), scalability and security (stringent bank-grade security protocols and certifications).
Paybefore judges have selected NovoPayment’s Platform as a Service (PaaS) a 2017 Pay Awards winner, in the Outstanding White-Label Platform category. For 11 years, Pay Awards has conferred the most prestigious recognition of excellence in payments technology worldwide. The awards are presented annually by Paybefore, whose publications are the leading source of industry information for payments executives.
“We’re delighted to have our platform recognized by the industry and are grateful to the judges and many clients and developers that have chosen our white-label offering for faster deployment, lower capital expense, greater scalability and resiliency,” said Anabel Perez, CEO of NovoPayment.
NovoPayment Platform as a Service was selected by an expert judging panel that evaluated a stellar field of global nominees.
“As our industry changes, we remain committed to honoring innovation and excellence. Among the big themes in this year’s competition were solutions tailored to specific B2B, health care, T&E and cross-border payment needs,” says Loraine DeBonis, Paybefore editor-in-chief and chair of the judging panels.
“We also saw a remarkable number of consumer-focused solutions with ingenious approaches to savings and incentives that are making a difference in people’s lives. We’re proud to recognize NovoPayment for its contributions in propelling the industry forward.”
Born of the need to solve many of the bottlenecks and technical challenges common to the Americas, NovoPayment’s PaaS facilitates the creation of new financial services and payment products, as well as the integration of third-party systems via a bank-grade, highly scalable, and cost-effective subscription model.
NovoPayment’s Platform as a Service will now vie for Best-in-Category distinction, which will be announced in Pay News the week of June 12. Visitors to Paybefore.com will have a chance to vote on Best in Category through May 31. The outcome of this vote will be combined with the judges’ picks to determine Best-in-Category honorees, all of which will be profiled in the Pay Magazine – Awards Issue.
NovoPayment, Latin America’s leading fintech firm and a frontrunner in enabling payments and financial services innovation throughout the Americas, today announced the availability of Facebook Messenger integration within its platform, allowing their clients — including banks, financial institutions, retailers, and travel organizations — to quickly deploy engaging applications and services on the popular social network.
According to the company, their new Messenger bot capabilities will allow its clients’ end users to perform automated functions, such as opening accounts, checking balances and transaction histories, making peer-to-peer (P2P) payments, watching tutorial videos and having common help questions answered, within the user-friendly Facebook Messenger app. Organizations working with NovoPayment will now be able to offer a new set of transactional experiences to their customers all while ensuring privacy, security, and compliance.
“By working with Facebook, we’re helping our clients to quickly configure and deploy their own Messenger bots, and are able to accelerate innovation and generate new transaction streams with limited intrusion, creating differentiated and engaging experiences for mobile users across demographic segments,” said NovoPayment’s CEO, Anabel Perez.
Facebook Messenger has grown rapidly since its launch two years ago, reaching one billion users earlier this year, facilitating multiple transactions without sending users to an external website or alternate service delivery channel. In addition, bots support voice-to-text, deliver news and content, updates, confirm reservations, and send receipts, driving personalized, scaled customer experiences.
The International Finance Corporation in Washington, D.C. extended an invitation to NovoPayment’s CEO, Anabel Perez, to join the panelists at their 2016 Fintech CEO Summit. The invitation-only event brought together founders and CEOs of Fintech companies from around the world to discuss current issues, exchange experiences, network, and do business.
NovoPayment participated in the “Banking in the New Age: Deposits” session, focused on different perspectives for deposit-taking. The primary question was, “Is the core architecture of banking changing?” For centuries, banks have intermediated between savers and borrowers. But that may be changing now. Traditionally banks owned direct relationships with their customers and provided customer facing services for all financial products. Consumers basically went to the closest bank branch from their homes or work places to open up a bank account, lend money and make investments into financial products.
The massive adoption of FinTech in recent years by not only existing financial institutions but also many disruptors in the deposit-taking business has resulted in drastic changes in consumer behaviors. Nowadays people face multiple channels of financial transactions and store their values in multiple stored value accounts. Although these new media still utilize traditional bank/payment rails to process payments and store values, we’ve started to see disruptive use cases which could potentially change the dynamics of deposit-taking businesses. During this session, the panelists discussed the future of deposit-taking dynamics and the potential implications.
In Latin America, where NovoPayment is focused, we see a lot of opportunities, the strong influence of trends from the U.S. and Europe, but also recognize a different picture. It is a less evolved marketplace, which moves slower, and requires a more hands-on investment of time and resources to integrate and innovate. There are also many markets, each with different local networks, standards, laws, and regulatory entities.
Furthermore, in Latin America, we don’t see core banking as really changing or the ultimate role of banks as being under threat. Banks are unique, highly regulated institutions in terms of their role and abilities. What we see instead is innovation around the core, an opportunity to enable banks and others to innovate and integrate more quickly and securely. In our region, we think true deposits will ultimately reside in financial institutions (e.g. pool accounts), but the future is in new cash-in/cash-out methods, integrating, and closing gaps. We must recognize the importance of stored value as well established vehicle with a lower cost of maintenance than a traditional deposit account. In this region, reloading networks in deposit-taking and the integration with ATM networks and global acceptance networks (MC/Visa) is extremely important.