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The Transition From Tellers To Digital Touchpoints In LATAM

As originally published on PYMNTS. Mass payments are no novel concept. Readers of this space know that many verticals and functions, from insurance to payroll – where payments are on the grandest scale in terms of volume – could see improvement in convenience and choice if only more companies would embrace instant and digital disbursements. The paper check remains a stubborn fixture in many areas of business. And readers also know that when it comes to Latin America, in the switch to banking done in ones and zeroes, transforming the way B2B is done may be best served through partnerships between financial institutions and FinTechs. As part of a continuing series on the digital transformation taking shape in the region, in an interview with Kevin Fox, executive vice president of NovoPayment, he stated that the trend is not a new one, but that it definitely has new twists. “Digitizing a company’s manual, cash and paper-based processes and payments has been going on a long time,” he told PYMNTS. “The difference is that solving it today provides not only a new service for banks to sell, but often their first truly transformative digital use case.” Progress has been a hallmark over the last several years – and yet, for firms like NovoPayment, greenfield opportunities abound. That is especially true in Latin America, Fox said, where in many emerging markets processes could be streamlined, where bank’s client companies are grappling with the demands of their own logistics and operational costs, and where traditional methods are just not cutting it. The age of the portal is over, it seems, and banks are finding that in product lines like corporate prepaid, enterprise customers want real-time, scalable and seamless payment experiences. Banks, once wary of FinTechs and of collaborative and API-driven models, are realizing the competitive advantages of digitizing payments functions, which in turn allows them, ultimately, to better serve their customers. “The catch is the urgency to the corporate client,” Fox told PYMNTS. “These payments can impact the operational flow of the business through procurement and key vendor relationships. We have found that there are a lot of organizations with large geographic footprints that may have considerable requirements to be able to support different business processes.” Thus, he said, complexity may stymie banks’ abilities to satisfy their clients’ desire for mass disbursements of funds to different stakeholders – ranging from employees to contractors who help fulfill different operational requirements on scales both small and large. It’s the last mile, in a way, and no easy task to tackle. Think, for example, of a logistics company served by independent trucking fleets, bringing various goods between cities or across borders. Mass payouts via an enterprise solution could be used to pay for expenses critical to the flow of business, such as fuel, tolls, stipends and drivers’ fees. Education and Dialogue — and APIs Fox contended that as client firms work with banks seeking to centralize operations and simplify last-mile activities, the API offers a new channel of delivery, where once the teller or the portal was a conduit for transactions. In outlining NovoPayment’s approach to Latin America, education and dialogue are key when seeking to smooth operational processes, he stated. “When you combine the importance of the mass payout problem to the client, the specific challenges it presents to the bank and the best practices for solving it today, you have an ideal recipe for testing some pretty top-of-mind stuff,” Fox said, as his firm helps to streamline, say, enrollment and compliance efforts through closed and partner APIs delivered through banks. Among the challenges in Latin America, as stated by Fox: “A significant share of your end user/recipient population probably lacks formal banking relationships and electronic payment instruments.” And against that backdrop, through the API, the client self-serves in what Fox termed a fully digital manner, pulling in services in an automated fashion, enrolling and authenticating workers and vendors. And when it comes to payments, he said, with the aid of APIs, those clients are able to go about ordering and electronically funding co-branded debit accounts, dynamically loading and reloading accounts at the individual transaction level, sweeping back and redeploying funds, and blocking and replacing accounts. Getting to the Heavy Lifting None of this takes place in a vacuum, said Fox. The banks have to understand what questions to ask of their clients. The pace can be daunting in adapting and adopting the digital mindset – and for some banks, there is the challenge of accepting the reality that in linking with FinTechs, the FI may need to accept a smaller role in executing some of the transformation in exchange for a bigger impact on the backend. “From the perspective of the FI,” Fox said, “the challenge is really to fundamentally understand the business processes of their clients. In some cases, financial institutions are not accustomed to getting very granular with their clients to determine where in their workflows they might add additional value.” An optimal experience, he said, is one where the bank client is consuming those aforementioned services from within the banking institution and via a White Label platform, rather than having to go to the bank for those services, picking and choosing them individually on an as-needed basis. “So the opportunity here,” he said of the FI linked with the FinTech and dialoguing actively with the client, “is to really get ingrained within the customer’s value chain.” As banks get their arms more fully around the idea of mass/instant payouts, in working with their enterprise clients, Fox suggested that all parties benefit from setting short-term goals, with a constant feedback loop in place. “There need to be champions,” said Fox, of digital initiatives across the FI and the client, “and those champions currently do not fit a specific profile” – as they can come from not just the C-suite, but also from marketing, sales and IT departments. But when is all said and done, “the bank emerges more digitally mature at the end of the process, which today is strategic gold.” ...
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NovoPayment Named “Best of The U.S.”

Miami, Florida – August 28, 2018 –NovoPayment has been selected as the winner of the 2018 BAI Global Innovation Awards in the Innovation in Customer Experience category for Embedding FinServ in Gig Value Chain, and is among a specially-invited group of award honorees selected Best of the U.S. to be recognized at BAIs Beacon event in Orlando October 9-11.   BAI Global Innovation Awards finalists and winners represent the most distinctive, revolutionary solutions in the global financial services industry, selected from hundreds of nominations. Awards winners will be honored at BAI Beacon on Tuesday, October 9th at 4:30 pm. “Best of the U.S.” honorees will be showcased on Wednesday, October 10th at 3:45 pm. NovoPayment has also been selected as a finalist for Outstanding Achievement in the Disruptive Innovation in Financial Services category to also be announced on October 9th.   “NovoPayment found a unique way to drive positive change in the industry and, ultimately, the customer experience,” said Debbie Bianucci, president and CEO of BAI. “BAI is pleased to recognize the dedication and innovation shown from these leaders and visionaries to help solve some of the greatest challenges in financial services.”   “Our collaborative innovation solves banks' and FI's general difficulty in serving modern, platform-driven businesses, and the undesirable impacts that cash-intensive processes have on their ability to scale,” said NovoPayment Co-founder and CEO, Anabel Perez.   Click to view full release....
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The Biggest Challenges Facing Financial Services – Part III

A four-part series originally published on LinkedIn. Part III: Getting Comfortable with Experimentation In our second installment of this series, we covered how new customer-centric collaboration models require us to rethink our concepts of ownership and control. As an extension of that exercise, we must also change our attitudes about experimentation and failure -- key concepts on the path to achieving digital maturity. According to Deloitte’s 2018 Digital Banking Outlook, “Digital disruption starts with experimentation, iteration and relinquishing command.” What I love best about the statement is what it doesn’t say: That going it alone today is also a kind of experiment, just one with poorer chances of success and recovery.  It’s no surprise then that respondents of a recent enterprise IT survey reported that the biggest challenge impacting a company's ability to compete in a digital environment is experimentation and taking risks. Of course, this challenge is not particular to financial services however, I would guess that many transformation champions and project owners in our region and elsewhere would probably rather walk on hot coals than utter the words “experiment” or “failure” in reference to their work. This mindset clearly needs to change. Product vs. Customer Centric It would be so much easier if we could just choose between operating and transforming, but unfortunately, we need to simultaneously do both. As such, we need to come to terms as an industry with the fact that most of us are still organized around products, fragmented lines of business and area silos rather than customer segments, as many experts recommend. This is perhaps the biggest obstacle to achieving digital maturity due to its immediate and often underappreciated consequences. Today, few if any banks and FIs can honestly say that they are dazzling their customers. This is a problem in a world where the importance of customer experience (CX) is difficult to overstate, and both consumers and business users are becoming increasingly restless in their desire to have more seamless, user-friendly interactions. The takeaway is that current organizational and delivery models are failing to meet customers’ expectations, and if left unchallenged, will not only inhibit the adoption of new technologies, but also the introduction of new collaborators. More on that in our next installment. In our final installment, we’ll explore how legacy decision making structures impact digital transformation initiatives and share some advice on setting project roles and reach. ...
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The Biggest Challenges Facing Financial Services – Part II

A four-part series originally published on LinkedIn. Part II: Rethinking Ownership and Control As we established in our first installment of this series, there is an inherent need to shift our industry’s mindset if we’re to advance our efforts to transform, achieve digital maturity and deliver services in a more customer-centric manner. Our way of thinking about ownership and control of technology is one such area. Two of the most contemporary trends and widely accepted practices in enterprise IT are the externalization of technology and the rise of open collaboration. Yet, an overly guarded attitude persists that in order to innovate, banks and FIs must replicate and own what others have done or acquire and assimilate. This way of thinking may be misguided or at best impractical when taking into account available human resources and relative costs. In Latin America and the Caribbean (LAC), where deep domain expertise is more scarce, assembling and successfully directing a group of vendors to replicate an imported innovation can be fraught with setbacks and costly blind spots. Also, consider that out of the roughly 300 banks in the LAC region, there may be 10 with the ability to successfully pull off a buy-and-integrate move allowing their organizations to meaningfully transform their tech and tech culture through acquisition. Therefore, one can conclude that the majority of banks and FIs, would be better off betting on technology partnerships that allow them to leverage other’s capabilities and connective tissues to generate value, preserve customer relevance and learn sooner, rather than to embark on building their own tech from scratch. Still, the own-and-control mindset is so ingrained that many organizations would still rather spend $10 million and two-plus years with the hope of successfully modernizing their own legacy tech (betting heavily on one option) over spending a half a million to go live on a more flexible platform in months, allowing them to more seamlessly integrate and create customer-centric ecosystems via APIs, for example. This alternative approach has the added benefit of allowing banks and FIs to innovate gradually, spread risk and invest more over time as initiatives begin to bear fruit and their organizations digitally mature. The takeaway is that we need to end our infatuation with ownership and control and get better at weighing our organizational readiness to transform against the most precious asset of all – time. In our next installment, we’ll explore attitudes about experimentation and organizational obstacles to achieving digital maturity. ...
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The Biggest Challenges Facing Financial Services: Mindset and Metrics

A four-part series, originally published on LinkedIn. Part I: Changing Attitudes for Changing Times For all of the technical challenges in digitally transforming (DX) financial services, it turns out that human beings are the most formidable puzzle piece of all. That's because, if you dig deep enough into digital maturity -- the end game of transformation -- you realize that achieving it requires a radical, almost antithetical shift in the way banks and financial institutions (FIs) have thought about and measured their businesses for hundreds of years. A quick look at a DX playbook and you realize that these organizations have to turn their most basic precepts of investment, control, clients and product upside down. As a former banker, I get it. I understand the long-held beliefs and convictions that have dominated banking, and by extension its discussions about technology, for decades. "Of course, we're risk-averse and controlling! Who wants a banker that experiments and externalizes operations?" Well, as it turns out, the world does. The Inclination to Reject As Bain & Company’s Mike Baxter and Richard Fleming wrote in American Banker (2015), "The traditional banking mindset and metrics rejects digital initiatives for all sorts of reasons." As such, they argued, they fail to receive sufficient funding, attention, and support. Among the reasons are an over-emphasis on net present value and insisting on hard ROI figures over more strategic indicators like, “Does this initiative solve a key problem or strategically put us in a better, more differentiated position? Is it more customer-centric?” If you think these conversations are problematic in the U.S. and Europe where banks might have been more inclined to incentivize new ways of thinking amid years of slowing revenue growth, imagine in Latin America where banks have enjoyed some of the highest returns on equity in the world and major enterprise technology trends lag by about four to eight years. The takeaway is that without a fundamental change in our thinking, the best initiatives can be stopped before they start, or pass us by. In our next installment, we’ll explore longstanding attitudes about ownership and control and how they impact transformation in the present. ...
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For FI Innovation In LatAm, Think VC, Not PE

As originally published on PYMNTS. To gain new strength, strengthen the core. Sound advice to any Pilates enthusiast, and to banks looking to tap into the potentially lucrative markets in Latin America through digital means. As it turns out, when it comes to transforming B2B and B2C transactions, these traditional financial services providers could use a little help. That’s especially true in markets like Latin America, where the movement to embrace and promote new payment technologies can lead to greenfield opportunities for financial institutions (FIs). The advent of APIs and platform banking models shows a sea change underway for firms, one well beyond the confines of traditional banking services. Going it alone — and building banking platforms from scratch or cobbling them together through existing technologies — is inefficient at best, expensive at worst. It’s also a form of betting heavily on one option (private equity [PE] mindset), as opposed to investing in and spreading risk across a set of options (venture capital [VC]). In an interview with PYMNTS’ Karen Webster, NovoPayment CEO Anabel Pérez stated that, when it comes to linkups between FIs and FinTech companies (such as her own firm), innovation is a key goal, but works best when it strengthens the most basic proposition(s) of a bank — among them cash deposits and client relationships. APIs have given rise to platform economies, where developers can create new products and banks can tap into those new capabilities quickly, without building it in-house or buying a FinTech to do it. Bankers today, Pérez said, would do well to bet on technology partnerships that can generate value and preserve customer relevance in the immediate term, rather than build their own or even invest in those startups with the expectation that — at some point down the road, perhaps via an acquisition — things will dramatically change. That shift in thinking requires a new way of examining the returns on those innovation investments, too, she said. “Some bankers still think that investing $10 million and two-plus years to modernize their own tech is better than spending a half a million to go live on a more flexible platform in months,” Pérez said. APIs, Bridging The Gap For FIs Traditional FIs must grapple with the vagaries of their legacy systems, and inadequate interoperability and middleware, that have persisted for decades. As such, they have difficulty in serving new clients who might, for example, require payment functionalities that incorporate new solutions, such as mass payouts or fast fund access — flexible payment models that stretch beyond the abilities and confines of banks’ mere web portals. That’s, in part, because the needs of the clients themselves change as they participate in platform economies. Against this backdrop, partnerships can generate revenue for banks and FinTech firms alike. Banks can mollify pain points, say, with enrollment/authentication and account management — and, of course, the daily rigors of satisfying compliance mandates. Pérez told Webster that the proper combination of private, partner and open APIs can help banks bridge the gaps to tap into the Latin American (and other) markets, with the added — and often overlooked — benefit of cutting the cost of delivering some services by 40 percent or more. In recent months, NovoPayment launched a developer hub devoted to Latin America, with dozens of APIs on offer — spanning functions such as enrollment, transactions and compliance — to help widen banks’ respective digital ecosystems across markets and use cases. The hub model offers the aforementioned APIs in sandbox mode, so that users are able to test innovation before deployment. The company also partnered with Visa earlier in the year to facilitate B2B transactions in Latin America. Broadening reach while strengthening the core remains a critical dual push for FIs in an age where, as Pérez noted, loyalty takes a backseat to innovation. Take into consideration the recent findings of a survey via Ovum, which found that 80 percent of corporate treasury professionals in countries that lack real-time payment infrastructure noted that they have considered moving their banking relationships in the past year. With such loyalty evaporating and consumer experiences consistently raising the expectations of business users, time is of the essence. Pérez said NovoPayment is seeing particular interest in partnering to deliver new customer services among Tier 2 and Tier 3 banks, for whom partnering should be a clearer choice. However, as she told Webster, some banks erroneously think they are cutting edge by dint of technology that is already falling by the wayside. “They do not understand the power they have to gain new customers,” she said. “Banking by app … is just a surface approach. They may be accommodating new interfaces and updating the way they provide [information] to consumers, … but they may also be underestimating the relevance and importance of the platform economy and, by extension, the platform banking model.” The banks know, continued Pérez, that “they need to overcome a lot of internal obstacles and challenges.” By leveraging existing systems with APIs (and with NovoPayment), she said, “they can innovate and integrate more quickly. If [FIs] go off and do it themselves, it is going to be costly.” That’s especially true in an environment where compliance continues to evolve, and where adopting narrow solutions are likely to prove as both half-measures and, ultimately, more expensive. Moving To A VC Mindset As Pérez noted, “banks typically do not have a venture capital mindset when looking at technology partnerships, they have a private equity mindset … they are always looking at the bottom line over long-term value.” However, the true cost of a new bank investment must be measured, too, in terms of time and impact to the customer. “It will be impossible for many banks to achieve a transformation model without a FinTech,” she said, even for some larger incumbents. The white-label aspect of platform banking represents an ideal option, she told Webster. Amid the embrace of collaborative partnerships, and APIs, Pérez mused that other mindset shifts for FIs in Latin America may reap benefits, too, as normally conservative operators should be encouraged to acknowledge, learn from and even celebrate mistakes. Not too far-fetched, she said, in a future where job titles might be reframed, and a bank executive might point proudly to their title as one that seeks to continuously enhance FI/customer relationships: “I’m in charge of value creation.” ...
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BAI Announces 2018 Global Innovation Award Finalists

CHICAGO — BAI announced the finalists for the 2018 BAI Global Innovation Awards, the industry’s most prestigious awards program that unveils the most transformative solutions in the financial services industry worldwide. BAI also launched the new People’s Choice Award where voters throughout the industry will select which innovation is the most powerful among the BAI Global Innovation Award finalists. 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. Each nomination is evaluated by the Innovation Circle. These 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. For the first time this year, BAI Global Innovation Awards will include a People’s Choice Award. Finalists from several key award categories are contenders for the award, and voting is now open. While BAI Global Innovation Awards finalists compete for this industry recognition, voters have an opportunity to participate and learn about innovation shaping the future. One winner will be selected for the award, which will also be announced and celebrated at BAI Beacon. The 2018 BAI Global Innovation Awards finalists are: Best Application of Data Analytics, AI or Machine Learning in a Product or Service First National Bank, Johannesburg, South Africa: Robo-Advice Tool for Life Insurance Jibun Bank Corporation, Tokyo, Japan: AI Support Tool for Foreign Currency Deposits OneConnect Smart Technology Co., Ltd. (Shenzhen), Shanghai, China: AI Verification using Insure Tech Ping An Technology, Shanghai, China: Emotion Recognition Based Financial Risk Management System Innovative Touchpoints and Connected Experiences CaixaBank, Barcelona, Spain: CaixaBank Now App HDFC Bank Limited, Mumbai, India: HDFC Bank Mobile Banking Card mBank S.A., Warsaw, Poland: Breakthrough Customer Experience in Distribution of Banking Products USAA, San Antonio, Texas, U.S.: IVR to Digital Channel Shift Internal Process Innovation DenizBank, Istanbul, Turkey: Internal Fraud Defence Live Oak Bank, Alpharetta, Ga., U.S.: 100 Percent Re-Invention to Cloud Service Operations for Boundaryless Anytime-Anywhere Employee Enablement Royal Bank of Canada (RBC), Toronto, Canada: RBC Blockchain Shadow Ledger for Cross-border Payments Innovation in Societal and Community Impact KASIKORNBANK PLC., Bangkok, Thailand: KPLUS Beacon – Mobile Banking Application for the Visually Impaired Nova Credit, San Francisco, Calif., U.S.: The World’s Premier Cross-Border Credit Bureau Rukula (Pvt) Ltd, Columbo 5, Sri Lanka: Micro-Credit for Consumer Product Purchases in Sri Lanka for the Financially Underserved USAA, San Antonio, Texas, U.S.: Aerial Imagery Tool Innovation in Customer Experience Arion Bank, Reykjavík, Iceland: Digital Mortgage Process Bank of America, Charlotte, N.C., U.S.: Meet Erica: Bank of America’s New Virtual Financial Assistant Best Innovation Group, Oak Ridge, Tenn., U.S.: Financial Innovation Voice Experience (FIVE) NovoPayment, Miami, Fla., U.S.: Embedding FinServ in Gig Value Chain Human Capital Innovation Albaraka Turk Participation Bank, Istanbul, Turkey: Yourunge Project DenizBank, Istanbul, Turkey: HR in a pocket Fifth Third Bank, Cincinnati, Ohio, U.S.: Maternity Concierge Intesa Sanpaolo, Turin, Italy: ISP Digital Learning – Portal and Smartphone App to Learn Anytime, Anywhere Innovation in Marketing CaixaBank, Barcelona, Spain: imaginCafe DenizBank, Istanbul, Turkey: Denizbank Credit X Intesa Sanpaolo, Turin, Italy: XME Conto UP! Marketing Campaign: the New Relationship Between Young People and Intesa Sanpaolo Turkiye Is Bankasi A.S., Istanbul, Turkey: Isbank’s Self-Learning Marketing Hub Innovative Accelerator or Incubator Albaraka Turk Participation Bank, Istanbul, Turkey: Albaraka Garaj Acceleration Center Arion Bank, Reykjavík, Iceland: Digital Future – Internal Accelerator Emirates NBD, Dubai, United Arab Emirates: Emirates NBD 3D Open Innovation Boost Wild Card Honorable Mention DBS Bank, Singapore: DBS API (application programming interface) Developers’ Programme FARFA Foundation, Chiniot, Pakistan: FARFA BLT Incubator Additionally, all nominees are considered for BAI’s Outstanding Achievement Awards. The finalists for the three honors are: Disruptive Innovation in Financial Services Nova Credit: The World’s Premier Cross-Border Credit Bureau NovoPayment: Embedding FinServ in Gig Value Chain USAA: Aerial Imagery Tool Outstanding Use of AI in Financial Services Jibun Bank Corporation: AI Support tool for Foreign Currency Deposits OneConnect Smart Technology Co., Ltd. (Shenzhen): AI Verification using Insure Tech Ping An Technology: Emotion Recognition Based Financial Risk Management System Most Innovative FinServ of the Year Arion Bank, Iceland CaixaBank, Spain DenizBank, Turkey USAA, U.S. To learn more visit BAIGlobalInnovations.com. About BAI As a nonprofit, independent organization, BAI delivers the financial services industry’s most actionable insights, enabling leaders to make smart business decisions every day. BAI is passionate about the trusted information and powerful tools that provide leaders with the clarity and confidence needed to drive positive change and move the industry forward. For more information, visit www.bai.org. ...
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Open Banking in Latin America Is Making Its Move, And Rightly So

As originally published in Nearshore Americas. Anabel Perez from Novopayment explains why several financial institutions in Latin America are moving on open banking projects and hunting for partners that can deliver quick, near-term wins. Right now, open banking 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. If the recent influx in FinTech-bank collaborations is any indication, many financial institutions in Latin America are kicking off their own initiatives before waiting for new open banking and API rules to roll out in Europe, Mexico, and elsewhere. And rightly so! Around the region, several financial institutions have started 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 discernible and deliberate pattern — they pick a project that’s not overly ambitious, a partner that they 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. Companies developing for the industry generally prefer and recommend projects that fit specific criteria, such as 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. 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 technology from negotiation to signature, cutting the closing process of €75m corporate creditfrom 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. Ultimately, 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 +2,000% in such use cases. That’s not a typo. How often do bankers see a product do that? Not very often. And when they do, 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 about what each side of the party in a collaboration can reasonably deliver in a given timeframe is key. Stretched IT teams that over promise 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. ...
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NovoPayment Named Finalist in Two BAI Global Innovation Award Categories

  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.   ABOUT BAI   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....
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