Mobile Banking Usage Increases in India

A recent study from FIS has revealed an increase in the use of mobile devices and digital banking channels in India due to demonetisation.

The report, Performance Against Customer Expectations (PACE), surveyed 1000 banking consumers in India and found that more than 60% of the respondents have used mobile devices in 2017 to check their account balances, view recent transactions, pay bills or transfer funds. The finding is up from 39% of survey respondents in 2016 and 34% in 2015.

Other key findings of the survey include:
• Nearly 18% of the respondents use their primary bank’s credit cards exclusively;
• The importance of the primary bank providing digital payment is on the rise;
• 30% say they use mobile apps to carry out their payments, compared to cash, cheque or cards;
• Gen Y consumers want to better connect with their banks at their convenience, at any time and from anywhere;
• The biggest pain point for banked Gen Y is getting time to physically visit a branch;
• Gen Y are less satisfied than older generations with their current banking providers.

The research also uncovers the fact that Indian banks continue to underperform their peers in other countries in terms of meeting their customers’ expectations. Indian financial institutions scored 75% in the 2017 PACE study, 1% higher than in 2016, but 7% below the global average PACE score.

European eID Schemes Provide Only 69% of ID Information

A new research published by Signicat has shown that European eID schemes provide 69% of ID information needed to digitally apply for financial services.

According to “The Rise of Digital Identities” report, financial institutions are missing a vital link in the digital chain: onboarding. 40% of consumers have abandoned a bank sign up process because of the time and effort needed. This combined with the upcoming eIDAS regulation means that financial institutions need to be able to onboard customers 100% digitally.

In Belgium, for example, the eID covers all the necessary attributes but the scheme is only relevant in a consumer-to-government context. In The Netherlands, the bank-operated scheme offers the right coverage but, on its own, will not satisfy Know Your Customer (KYC) requirements.

To fully verify a customer’s identity, financial institutions must supplement eID information from a variety of sources including national ID schemes, various digital assets and traditional ID documents such as passports. To succeed, institutions must plug the gaps and ensure they have access to the right information in the right geographies.

The paper was developed with research from Innopay, the payments, digital identity and e-business consultant. Innopay surveyed the onboarding landscape across Austria, Belgium, Germany, Luxembourg, The Netherlands, Switzerland and the UK to look at KYC/AML requirements and how available eID schemes map to these requirements.

Banks Warned Over Misuse of Personal Information

Data

Businesses including banks and financial services institutions must build public confidence in their ability to store and protect Australian citizens’ personal information, according to the latest Unisys Security Index.

The research found that 58 per cent of Australians are extremely or very concerned about unauthorised access to or misuse of personal information, while a further 55 per cent are extremely or very concerned about other people obtaining or using their credit/debit card details.

The Unisys Security Index is a global study that measures the attitudes of Australians on a wide range of issues related to national, personal, financial and Internet security, and showed that many consumers are still concerned over identity and financial theft.

“In an era where data breaches have become part of the daily news cycle, consumer confidence in the ability of organisations, including banks and retail businesses, to protect their personal and financial data has eroded away,” says John Kendall, director for national and border security programs, Unisys.

UK experience

Research indertaken by RFi Group based on the UK experience of open banking found almost 60 per cent of UK consumers agreed that their privacy was more important to them than accessing better products and services.

“Here the banks have an advantage; on any given Sunday a consumer trusts their bank to hold and maintain the privacy and security of their personal information better than any other organisation,” RFi Group managing director of consulting Alan Shields said.

Closer to home, RFi Group research found that Australian banks are the most trusted institutions in terms of data security and privacy regardless of age – with banks outranking technology and even government agencies when it came to trust and privacy issues.

Shields acknowledged that banks with foresight are already preparing to operate in an open banking environment, with open APIs.

“On the consumer front, if we solve privacy and security concerns, then account aggregation is clearly an attractive driver of consent among younger consumers and it is here that the banks must carefully choose their positioning,” he said.

Data breach

However, there are plenty of examples of companies getting it wrong and less than 12 months ago Australia recorded its largest ever data breach when the Red Cross Blood Service lost over half a million personal and medical files of Australian citizens.

“High-profile security breaches have rattled the Australian public and highlighted the vulnerabilities in business implemented technology. Security breaches don’t just impact an organisation’s ability to deliver services, the negative repercussions of a data breach can change the way customers think about or trust the business,” added Kendall.

Previous Unisys research from 2011 revealed 85 per cent of Australians said that they would stop dealing with an organisation if their data was compromised.

“Banks, retailers and governments wanting to move more of their transactions online can use innovative security measures, such as multi-factor identification or biometric technology, as a point of difference and position themselves as safe organisations to do business with and regain consumer trust,” concluded Kendall.

Klarna Granted Full Banking Licence in Sweden

Klarna has announced it has been granted a full banking licence by Finansinspektionen, the Swedish Financial Supervisory Authority.

Obtaining a banking license will enable Klarna to broaden its product portfolio for customers and merchants. The license to operate as a bank comes into effect starting from the date of the decision.

Klarna is a Swedish ecommerce company, founded in 2005 in Stockholm, which provides payment services for online storefronts. Currently it has 60 million customers, serving over 70,000 merchants across the world. Their core service is to assume stores’ claims for payments and handle customer payments.

Singapore to Test Blockchain for Diamond Trading

Singapore Diamond Investment Exchange (SDiX) has teamed up with two blockchain startups to trial blockchain verification for diamond trading.

The exchange is working with Kynetix, which develops blockchain-powered commodity marketplaces, and Everledger, which uses the tech to track the trade of diamonds, to authenticate a proof-of-concept aimed at creating verifiable trails for precious stones.

According to a press release for CoinDesk, the concept is designed to enable holders of diamonds with certificates from a verification laboratory to authenticate the ownership and authenticity of the diamonds using a distributed ledger. Changes of diamond ownership on SDiX will be updated on the ledger, creating a digital record for market participants.