Digital payment problems drive banking exodus
Digital payment problems are behind a trend of UK small-to-midsize businesses (SMBs) planning to switch their banking provider soon, according to a new study. The FIS PACE survey of 253 SMBs - across industries, from startups to established business - found that while 70 per cent of SMBs are satisfied with their banks, of the 30 per cent that are unhappy, most plan to change bank in the next year.
Bank of Ireland hit by debit card failure
The Bank of Ireland yesterday experienced technical problems with the processing of debit card transactions, leaving thousands of customers unable to withdraw money or pay for goods. According to the bank, one in seven customers were affected by the problem, which it stated has now been resolved.
PayPal to acquire Simility for $120 million
PayPal look set to continue their spending spree with the $120 million acquisition of fraud prevention and risk management platform Simility. PayPal hopes that the purchase will enhance its ability to deliver fraud prevention and risk management solutions to merchants around the world. Merchants will gain access to fraud tools that can be customised to suit the needs of their business.
ING leads $16m investment in TradeIX
Trade finance platform TradeIX has closed a Series A investment round of $16 million, led by ING Ventures with participation from Kistefos, BNP Paribas and Tech Mahindra. TradeIX has established partnerships with various leading banks, corporates and enterprise resource planning (ERP) providers. The company also works with enterprise software firm R3 to lead the Marco Polo initiative involving international trade banks aimed at further developing the use of distributed ledger into trade transactions.
Lack of crypto regulation risks ‘missed opportunity’
The chair of the cryptocurrency trade body, CryptoUK, has warned politicians that the UK risks missing out from the global cryptocurrency economy if it fails to bring the sector within the remit of financial services regulation. Iqbal V. Gandham - who is also UK managing director of eToro - gave evidence yesterday to the Treasury Select Committee, calling on government to take a straightforward, light-touch approach to regulation, by bringing cryptocurrency exchanges within the remit of the Financial Services and Markets Act.
UBS joins $50m SigFig funding round
Wealth management FinTech SigFig has secured $50 million in Series E funding, led by General Atlantic with participation from UBS, Bain Capital Ventures, DCM Ventures, Eaton Vance and New York Life. Founded in 2011, SigFig provides more accessible investment advice for investors of all wealth levels. The company uses data science technology for its end-to-end digital wealth management platform, which is behind automated investment services for banks including Wells Fargo, UBS and Citizens Bank.
Lloyds Banking Group axes further 450 jobs
Lloyds Banking Group will reduce its staff numbers by a further 450, following an announcement earlier this year that it would be axing 930 jobs alongside hundreds of branch closures. “Today’s announcement involves making difficult decisions, and we are committed to working through these changes in a careful and sensitive way,” a Lloyds spokeswoman said.
IBM Watson expands further into RegTech
IBM’s artificial intelligence (AI) powered Watson Financial Services has announced changes to its portfolio of services to help companies tackle risk and regulatory compliance challenges. These include ‘significant’ enhancements to IBM’s OpenPages 8.0 with Watson, which leverages the AI technology to let users more easily interpret complex issues and match them automatically to controls and obligations, as well as analyse losses, emerging risks and failed controls.
Mobile PoS devices forecast for huge growth
Mobile point of sale (mPoS) devices connecting wirelessly or via mobile devices will account for 24 per cent of all point of sale transactions by 2023, according to new research. The study from Juniper found that mPoS devices, such as those from iZettle and Square, will account for 87 billion transactions by 2023, representing a threefold increase over an estimated 28 billion transactions in 2018.
FCA finds urban/rural banking disparities
In rural areas, a higher proportion of people have difficulty getting to a bank and tend not to be able to use online banking, although they are more likely to be satisfied with their overall financial circumstances. This is according to a survey of nearly 13,000 adults by the Financial Conduct Authority (FCA), which conversely found that people living in urban areas are less likely to be satisfied with their overall financial position, are more likely to use high-cost loans and on average have higher levels of unsecured debt.
‘Data centre malfunction’ behind Visa outage
A rare malfunction of hardware in one of Visa’s data centre was the cause of the outage that left millions of people across Europe unable to make card payments on 1 June. In an 11-page letter to Nicky Morgan, chair of the Treasury Committee, Visa detailed the reasons for the system failure, its effect on the UK and Visa’s response and plans for avoiding such problems in the future.