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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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EBOOK | Mid-Year 2018: Payments Execs Map Out What’s Next

As originally published in PYMNTS. The world is getting faster these days. Change happens at the speed of, well, if not light, then sound. The information deluge is constant. Commerce is constant. Payments and financial services? Always on, too, and always in demand. There’s no such thing as “bankers’ hours” anymore. No surprise, then, that innovation in the payments space is getting ever-more truncated in terms of time to market. It’s also no surprise that trends now come in waves, more often than not, with nary a ripple effect in sight. Deals are cut across industries as firms seek scale, scope and technology to tie it all together. Witness, for example, Amazon’s push into food via Whole Foods Market – and its foray into medicine through its announcement, just last week, that it would buy PillPack. Not to mention push payments, which use existing rails to get gig workers paid as projects are completed. Any number of examples of innovation and change pop up in the pages that follow. We asked executives from several points along the payments continuum to weigh in on what those trends and innovations mean, looking both backward and forward. What better demarcation point for introspection, reflection and prognostication than the half-year mark? The hazy days of summer may be upon us, but the executives we’ve tapped are clear-eyed in their assessment of what changes have been wrought, in ways grand and small — and where trends have developed in the year, thus far, and where they are going. It’s not just about digital, with transactions done in ones and zeroes. It’s not just consumers going mobile. It’s not just the headlines about cars that drive themselves, or Big Data, or cryptos or blockchain. It’s all of this —  and, of course, a lot more. Among some of the musings from our experts: Mergers are less about volume and more about bringing new value to end markets. The regulatory environment is changing for firms of all shapes and sizes. PSD2 and GDPR have crossed the Rubicon from mere acronyms to reality. Artificial intelligence is no longer the province of science fiction. Want more food for thought? Put down that beach read and get ready to delve into some heady stuff. ...
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Visa, NovoPayment using APIs to wean Latin American businesses off cash

As originally published by Payments Source. NovoPayment, a payment provider focused on Latin America, is working with Visa to help local banks work with Latin American businesses to migrate from their high levels of cash usage to digital payments. The companies are planning to develop B2B and B2C payment APIs for banks in the region. The initiative aims also plan to address the fragmented nature of the region’s banking and payments networks. Over the past year, Visa has been positioning itself in the B2B payments space. In June 2017, Visa launched the Visa Ready Program for Business Solutions. In October, it partnered with Billtrust to improve B2B virtual credit card acceptance. In November, Visa launched the first pilot phase of its blockchain B2B payments service Visa B2B Connect. January and February 2018 respectively saw Visa’s API partnership with NovoPayment and acquisition of B2B expense management solutions firm Fraedom. NovoPayment has been working with Visa on open APIs for quite some time, and further announcements are in the pipeline, according to Anabel Perez, Miami-based NovoPayment’s CEO and founder. She adds that NovoPayment’s deal with Visa isn’t exclusive and that she hopes to sign similar open API deals with other payment networks. “NovoPayment and Visa are developing joint APIs to enable Visa customers in the LAC (Latin America and Caribbean) region to deliver new digital products and services to their business clients,” Perez says. “These include instant payments and mass payout services for gig economy firms and marketplace operators as well as T&E solutions for business travellers.” NovoPayment sees major opportunities to provide real-time payments for the gig economy in Latin America, such as for urban delivery companies and firms providing urban mobility services, Perez says. According to data from Americas Market Intelligence, Uber ride volumes rose tenfold across LAC between 2015 and 2016, while the region’s e-commerce market is growing by 20 percent a year. “There is still heavy cash usage in LAC,” Perez notes. “Also, Latin America’s domestic and cross-border payment systems lack interoperability, which is why NovoPayment has invested in ensuring its platform interconnects with multiple end points and networks. This means that our bank clients don’t need to invest in their own integrations with end points and networks.” FIs and business that deploy NovoPayment’s and Visa’s jointly developed APIs won’t need to apply for multiple certifications from Visa. “They can simply use the certifications we’ve been given by Visa,” Perez says. The APIs enable participating banks' corporate clients to automate tasks such as virtual and card-based account origination, fund loading and reloading to Visa cards, recovery and redeployment of funds, and Visa account blocking. NovoPayment, which began life as a prepaid card program manager specializing in T&E and employee benefits cards, has Principal Member Licences from both Visa and Mastercard in LAC. It has over 2.5 million prepaid card accounts, 72 prepaid card program deployments and over 11,000 corporate clients in Latin America. “By the end of 2018, we will have onboarded three new customers including NovoPayment’s first U.S.-based client, which is based in Miami,” says Perez. “We want to showcase the potential of our hub to connect businesses in Miami with Latin America.” Last October, NovoPayment launched its own cloud-based open API developer portal in the region, enabling banks and payments firms to offer B2C and B2B mobile payment services. It also launched a practice targeting the emerging gig economy in LAC. “We still operate our prepaid card programs which are available on a white-label basis as well as through our subsidiaries in Mexico, Peru, Colombia and Venezuela,” says Perez. “But we’re now refocusing on offering APIs for payments enablement on our bank-agnostic, multi-country and multi-currency platform. Our platform is available on a modular basis, so that banks can choose to host prepaid card accounts and other services on their back-end server or let us host these accounts for them, for example.” Developers can test NovoPayment’s APIs on its portal and then embed them into their own programs. “We’re planning to launch a new version of the portal before the end of 2018 and will also double the number of our APIs from the current 37,” says Perez. Working with Visa, NovoPayment supplied its APIs to the Colombian subsidiary of Ecuador’s Banco Pichincha. A case study on NovoPayment’s website explains that Banco Pichincha Colombia (BPC) increased revenue from its commercial banking customers by giving them digital cash management services including the ability to digitally manage procurements, payroll and commissions, and to offer meal and food benefits and fuel expenses prepaid cards to their staff. Two examples of services provided by BPC to its business clients include rolling out real-time payments for urban deliveries of goods ordered online, and fee and expenses payments to independent drivers in the shared transportation sector. “By using our APIs, BPC is seeing a 2,000 percent CAGR in transactions and fund transfers from its new service,” Perez says. BPC is owned by Ecuador’s largest bank, but it is a new entrant in Colombia and faced significant competition from incumbents. ...
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Open Banking in Latin America Isn’t Waiting for Mandates – And it Shouldn’t

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....
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Open Banking in Latin America Isn’t Waiting for Mandates

As originally published on Forbes. 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 application programming interface (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 discernible and deliberate pattern: Pick a project that’s not overly ambitious and 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 in a 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 person-to-person (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, those that you can pilot with an existing and able client and those that clearly fall 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 business-to-business-to-customer (B2B2C) plays like digital lending, to name a few. And, the fintech business to business (B2B) trend seems to be catching steam, as evidenced by reports of Santander’s plans to launch a digital business banking service in the U.K. and Banco Bilbao Vizcaya Argentaria (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. Innovating 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 roadmap 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. Why 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? 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. 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 and builds customer-centric journeys, and McKinsey & Company suggests it may be time to redefine some product offerings and migrate them to new platforms. API Economy And Platform-Driven Business 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 compound annual growth rate (CAGR) of 2000% per month in such use cases -- and that’s not a typo. How often do bankers see a product do that? Answer: 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 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. ...
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LATAM Banks’ Digital Journey Starts With The Value Chain

As originally published in PYMNTS. Moving from cash to digital in Latin America is a process that requires not only the right technology, but the right types of partnerships and use cases between banks and FinTech firms, built on trust. That process, and making sure it works profitably, were among the main themes of the latest PYMNTS “Monday Conversation” series. Anabel Perez, CEO at NovoPayment, talked with Karen Webster about the digital payment progress in a region with more than 630 million consumers and at least two globally significant economies: Brazil and Mexico. NovoPayment offers financial and transactional services through a cloud-based platform, the company said. Its clients include banks, financial institutions (FIs) and others throughout the Americas. So what are FIs in Latin America hunting for as pressure builds to go ever more digital in both B2C and B2B? First, capturing more deposits, Perez told Webster. What bank doesn’t want more consumers and businesses to put more money into their accounts? Second, building new relationships, which can then add revenue boosts to balance sheets. The strategy for pushing banks further into digital first involves getting those FIs to focus on the value chain — that is, working from the customer back. “We show [banks] that they can deliver better financial services within their customers’ own value chains,” Perez said. “That seems like a new concept to many of the bankers you talk to, but it’s actually at the heart of open banking and digital transformation.” That’s only the start. Trust matters in any business relationship. FIs in Latin America need confidence that FinTech firms — operating along the frontiers of Latin American payments and commerce — are not there to poach customers, but to sell technology, software and services designed to help banks make the move from cash to digital, as well as better serve customers and advance their own relationship banking strategies. Done correctly, FinTech companies and FIs help each other find deeper wells of profit. Perez said it also helps to be able to prove the tech that FinTech firms bring is secure and compliant, as well as to understand how FIs think. That in particular, Perez said, is something that NovoPayment considers one of its competitive advantages. “We have a banker’s mindset,” Perez said. “We have origins in banking. In some cases, we may surpass their own standards.” That said, Perez emphasized that getting FIs to buy in doesn’t happen overnight, given the complexities of working with and across the different stakeholders in a bank. She said it takes time for bankers to understand there are newer models of doing business that, in certain cases, involve a hybrid of traditional practices, such as mobile and API delivery methods — which involve working in partnership with FinTech businesses to make progress happen faster, and scale faster. Perez said she and her team have found that helping these banks identify a few “quick wins” that will result in near-immediate revenue gains can help establish that trust and get a project started. “First and foremost,” Perez said, one must bring more collaborative and API-enabled models to banks, and new payment propositions that have a solid, documented track record that shows the banks how that solution can scale, or be applied to new use cases. Banks always want better margins, after all — a prime goal of an FI’s board of directors – along with evidence of digital transformation. From a NovoPayment perspective, Perez said that since they understand cash management and how the money and data can flow to and from the bank, they can help them find a “quick win” project that delivers a benefit consistent with the reality of their clients’ businesses. On that score, she said, there are many proof points. “We are seeing positive growth in some markets,” Perez said. She offered an example of an unnamed client enjoying a 2,000 percent compound annual growth rate (CAGR) in new deposits via projects that completely replace cash. “It’s a double win for the bank,” she said. Citing mass payments for gig workers as a proof point, Perez said banks gain revenue streams by giving their enterprise customers new ways to digitize the payments services they offer to their consumers. That keeps the customer sticky to the business which, in turn, keeps the business loyal to the bank that provided the capability. It is a circle that Perez said is proving virtuous for NovoPayment. “Banks are calling us to see how they can capture those types of relationships,” she said. ...
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Latin America’s Potential for Fintechs

Latin Trade interviews Anabel Perez, CEO & Co-Founder of NovoPayment. Established more than a decade ago, NovoPayment provides financial and transactional services solutions to banks and corporations. The company, which operates throughout most of Latin America and serves more than 2.5 million end users, has built landmark alliances with multinationals such as Visa, while providing innovative cash management and payments alternatives for big clients like airline Avianca and Banco Pichincha in Colombia, and rising stars such as Rappi, a fast-growing delivery company. Venezuela-born Anabel Pérez, NovoPayment CEO & Co-Founder, has more than 25 years of experience in banking. She is a recognized professional for her achievements in the industry, most recently for her endeavors in financial inclusion in Latin America.Anabel Pérez, CEO & Co-Founder, NovoPaymentWhat is the main impact that fintechs are having on banks and consumers? Fintechs are helping to drive much-needed innovation across a range of different financial services. I say “much-needed” because companies’ and consumers’ realities—the way entire industries and people operate their business and their lives—have changed considerably over the past few years, while the financial services industry has changed little by comparison. In our case, we’re changing that by enabling banks and financial institutions with the open banking and (Application Programming Interface) API-based technologies that … Read the full interview at Latin Trade. ...
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