the full picture, this week – 07 June 2019

by | Jun 7, 2019 | All Blog Posts, the full picture this week, Featured

Let us put you in the picture this week, as we round-up and react to the latest news from the financial crime compliance and technology sectors.

This time, we report on how fintech services have hit the mainstream, according to the EY Fintech Adoption Index, with China and India top-ranked when it comes to fintech usage.

Elsewhere, we highlight the news that the 20 major economies grouped together as the G20 are pushing for a registry for cryptocurrency exchanges to help stamp out money laundering.

These issues, and more from around the globe, give us plenty to dive into for your Full Picture, This Week…

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fintech hits mainstream as global uptake rises

the full picture, this week – 07 June 2019 | mobile banking | encompass blogFintech services have hit the mainstream, according to the EY Fintech Adoption Index.

The study, based on 27,000 interviews across 27 markets, revealed that China and India lead the way in terms of usage, with 87 per cent of the population now using associated services, closely followed by Russia and South Africa, both with 82 per cent.

The UK has an adoption rate of 71 per cent and Tom Bull, EY UK’s fintech leader, said its position alongside large, mature economies reflects London’s reputation as a fintech global hub and the resilience of the sector amongst broader Brexit uncertainty. Mr Bull explained:

We expect to see increased adoption in the UK as established financial institutions work on more fintech services either through partnerships, acquisitions or in-house development… The introduction of Open Banking and PSD2 in the UK hasn’t yet created the rapid take-off of use predicted, but it is still early days.

Read the latest here.

the encompass view

What this research shows is that there is more of an appetite for fintech now than ever before, and we can clearly see this reflected in the increased usage across the global markets.

Mature fintech, as we know it in today’s space, and regtech, which is a clear focus for encompass, are now characterised by defined and structured collaboration with banks and B2B firms, moving beyond the retail/consumer focus, which the first wave of fintechs reflected.

This, combined with a shift towards practical staged implementations that prove value and integrate with and improve banks’ current processes, rather than replacing them completely, means the true benefits of fintech solutions are being realised as part of an ecosystem of solutions.

While the UK adoption rate is particularly high, with London’s role as a global hub for the industry cemented, Scottish businesses are also making moves in the sector, which is something we hope will only continue as the country’s ambitions to show what it can offer in the fintech/regtech arena are brought to fruition.

the encompass view

What this research shows is that there is more of an appetite for fintech now than ever before, and we can clearly see this reflected in the increased usage across the global markets.

Mature fintech, as we know it in today’s space, and regtech, which is a clear focus for encompass, are now characterised by defined and structured collaboration with banks and B2B firms, moving beyond the retail/consumer focus, which the first wave of fintechs reflected.

This, combined with a shift towards practical staged implementations that prove value and integrate with and improve banks’ current processes, rather than replacing them completely, means the true benefits of fintech solutions are being realised as part of an ecosystem of solutions.

While the UK adoption rate is particularly high, with London’s role as a global hub for the industry cemented, Scottish businesses are also making moves in the sector, which is something we hope will only continue as the country’s ambitions to show what it can offer in the fintech/regtech arena are brought to fruition.

Alex Ford | VP Operations, encompass

G20 progressing on registry for crypto exchanges

the full picture, this week – 07 June 2019 | Fukuoka, Japan | encompass blogThe 20 major economies grouped together as the G20 are pushing for a registry for cryptocurrency exchanges to help curve potential money laundering.

It is expected that the G20 will soon come to an agreement on this registry after formally recognising and taking heed of the cryptocurrency market place.

Finance ministers and central bankers from the bloc will discuss challenges surrounding digital currencies, including money laundering and customer protection, at a meeting in Fukuoka, Japan, later this month.

It comes after The Financial Action Task Force (FATF) said in October 2018 that virtual asset service providers ought to be subjected to anti-money laundering regulations.

“They should be licensed or registered and subject to monitoring to ensure compliance,” the policymaking body commented.

Read more.

digital banking ‘part of everyday life’

Six out of seven people use digital banking solutions at least once a month and 38 per cent do so on a weekly or sometimes daily basis, according to new research.

Mastercard commissioned TNS Kantar to survey more than 11,000 people from 11 different markets, finding that 63 per cent use mobile banking apps from traditional banks and 20 per cent from digital-only banks.

The research revealed that security was the most important criteria for using digital banking solutions at 67 per cent, while convenience was ranked highest by a third of those surveyed.

The biggest advantage of digital banking solutions is because they are time-saving (66 per cent) and easy to use (65 per cent).

Looking to the future, a growing number of Europeans say they will consider switching to a digital bank at some point – this is an increase from 49 per cent when the same study was carried out in 2017 to 54 per cent now.

Get the latest from FStech.

on demand webinar

aligning customer and vendor due diligence through technology

news in brief

China’s securities regulator will enhance its crackdown on money laundering, with a string of concrete measures. Anti-Money Laundering (AML) will be further prioritised as it bears much importance for the stable and healthy development of the capital markets, the China Securities Regulatory Commission (CSRC) said in a statement. Read more.

A consortium of companies have launched b.yond, a financial innovation platform that will let banks and consumer-facing businesses deploy a range of fintech payment services. The consortium includes Global Processing Services, Pannovate, Cornercard, Modulr, AllPay and Meawallet. Find out more.

SWIFT’s Latin American Regional Conference (LARC) explored how banks in the region are looking to increase digitisation while managing cyber and compliance challenges. Ignacio Blanco, Head of Latin America & the Caribbean at SWIFT, opened LARC by noting that customer demands from financial services have rapidly increased in the digital world, with organisations operating in a world that is hyper-connected. Get more from the event.

A recent compliance survey of financial executives reveals that while most financial firms rated themselves as being effective when it comes to AML, 30% rated at least one of their components as being either “not at all effective” or only “somewhat effective”. Law.com has more.

More than half (52%) of customers in Germany prefer to pay cashless, according to new research. This development towards digital payment – highlighted in a study titled “Besser bargeldlos als Bargeld los – Potenziale digitaler Zahlungsverfahren im Mittelstand” – (“Better cashless than less cash – the potential of digital payment methods for SMEs”) offers significant potential for increases in sales and efficiency as well as cost reduction for small and mid-sized enterprises (SMEs).

the latest from encompass

This week, we held a webinar with Dun & Bradstreet exploring the convergence in compliance and procurement strategic objectives and responsibilities, and how joined-up processes can accelerate progress towards the common objectives of reducing costs while streamlining third party onboarding. You can watch the on demand webinar here.

On the blog this week, Business Development Manager Max Worrall examined how merchant service providers get the customer experience right in a competitive market. Read it here.

Amy Bell, industry advisor to encompass also gave her take on the findings of a recent SRA review in this blog.

And we were delighted to announce that encompass has been named among APAC CIO Outlook’s Top 20 Banking Tech Solution Providers.

meet the encompass team

From 12-13 June, we will be attending ACAMS AML & Financial Crime Conference Europe in Berlin. We’re looking forward to learning about the latest advancements in managing conflict, regulatory structures and collaborative working. If you’re attending and would like to set aside time to learn more about encompass then contact abis@encompasscorporation.com today.

On 18 June, Ed Lloyd, Executive Vice President and Global Head of Sales & Marketing at encompass, will be speaking at the Automation in AML & KYC Forum in London. This Panel Discussion will cover achieving operational excellence in KYC/AML through automation. The forum welcomes colleagues from banking, capital markets and other financial services to discuss all things automation. Find out more here.

The world of Know Your Customer (KYC), compliance and financial crime never sleeps, and if your challenges are keeping you up at night let us help. encompass intelligently automates information and news discovery for KYC requirements for onboarding, event-driven refresh and remediation.

Driven by your internal policies, our platform automatically constructs corporate ownership structures, discovers beneficial owners, and in minutes screens all relevant entities and persons for regulatory, reputational and financial risk.

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