LexisNexis® Risk Solutions earned recognition as a leader in the Global Behavioural Biometrics and Fingerprinting Solutions report from Datos Insights (formerly Aite-Novarica). It achieved best-in-class scores across three of the four criteria areas assessed: vendor stability, client strength and client service. The analysts also considered LexisNexis Risk Solutions to be a strong contender, bordering on best-in-class status, in the product features criteria area.

Analysts at Datos Insights highlighted the layered approach to identity and authentication that LexisNexis Risk Solutions provides, throughout the customer lifecycle and across communication channels. According to the report, the LexisNexis® ThreatMetrix® Dynamic Decision Platform “enables clients to develop a tailored risk and authentication strategy across channels by leveraging a wide array of risk signals including behavioural biometrics and digital identity intelligence including device, email and phone risk and many other aspects.”

“LexisNexis Risk Solutions delivers a solution that is focused on providing fraud protection in an effective and customer-centric manner,” said Jim Mortensen, Strategic Advisor at Datos Insights. “The available capabilities can address a wide range of fraud types. In addition to the ability to intelligently authenticate customers at login, the solution can help organisations determine whether an individual customer is being scammed through behavioural signals. Added to that, the solution’s device intelligence features analyse the user’s device and authenticates its validity.”

The report emphasised that LexisNexis Risk Solutions employs various advanced detection methods in its approach to user authentication and security. These methods encompass behavioural intelligence from LexisNexis® BehavioSec®, which assesses user identity and authenticity, and also includes the ability to detect potential scams. Additionally, LexisNexis Risk Solutions uses digital identity intelligence techniques to analyse and confirm the authenticity of customers and their devices. This approach is purpose-built to deliver a streamlined and exceptionally effective authentication experience.

“The Datos Insights report underscores how LexisNexis Risk Solutions empowers organisations to reliably authenticate their customers with minimal disruption to the customer journey,” said Rob Woods, International Market Planning Director at LexisNexis Risk Solutions. “Our comprehensive solutions demonstrated outstanding performance across the criteria Datos Insights used for analysing products aimed at enhancing companies' risk and authentication strategies. We will continue extending these services globally to enable clients to realise the benefits of cutting-edge digital identity intelligence and behavioural insight technologies.”

The accelerated transformation in business-to-business (B2B) payments seen in the last three years is set to continue into 2024 and beyond. As businesses look for more efficient ways to make and take payments and even fund their operations and growth initiatives, digital B2B payment technology is proving to be an effective solution.  

While some companies were early adopters, digitising and automating their payment systems before the challenges of COVID-19, some players are yet to implement the tools that would address many common business cash flow and payment problems. Here are some key statistics to give you an overview of the B2B payments market, both globally and in Australia, and the trends that are likely to dominate the B2B payments landscape across 2024 and beyond.

1.       The B2B payments market continues to grow, forecasted at a CAGR of 10% through 2030. 

The global B2B payments market is expected to grow at a compound annual growth rate (CAGR) of 10.1% through to 2030, making the market worth $2.1 trillion. 

2.       By 2025, most B2B transactions will be digital.  

Digitisation has swept through B2B payments, particularly in the last three years. According to Gartner’s Future of Sales 2025 Report, 80% of transactions between suppliers and buyers will be digital by 2025.  

Businesses that act now to get digital B2B payment systems and processes in place will reap the rewards now and into the future. Not only will these businesses save time, but they’ll also gather data that can be used to drive stronger commercial decision-making. 

3.       B2B payments will dominate the virtual card payment market by 2026. 

By 2026, virtual card transactions will reach $6.8 trillion globally. With conveniences such as employee-issued cards and spend tracking, companies are embracing virtual cards, especially in remote workforces, to streamline and better manage spending. 

4.       Despite rising interest rates and lengthy approval processes, Australian businesses still rely on banks for some of their funding. 

Three-quarters of businesses (75%) use bank loans to bridge cashflow gaps, while agri-food companies request trade credit for short-term finance. Other methods used to address cash flow issues amongst Australian businesses include delaying payments to suppliers and spending extra time chasing late payments. A more effective alternative to these methods, which does address cash flow and late payment problems, is on-demand finance. 

5.       Almost half of Australian businesses want to improve their payment processes.  

46% of businesses now accept four or more payment methods. The most common methods include bank transfer, corporate credit card, direct debit, and digital payments. Despite offering a range of payment methods, 45% of companies say they need to improve their payment systems, with 40% discussing investment in changes at the executive or board level. 

6.       In Australia, there’s been a 12% increase in overdue payments in the last year, and 47% of B2B sales on trade credit remain unpaid by the due date.  

When interest rates rise and high inflation persists, continuing to offer trade credit can be increasingly risky. For example, insolvency issues are a key cause of late payments in the agribusiness sector, rising to 7% of all outstanding invoices. To address these issues, solutions that extend payment times without the supplier carrying the risk are key.  

7.       Payment times from big businesses to SMEs in Australia remain unchanged despite policy developments aimed at reducing payment times. 

Despite the Payment Times Reporting Scheme being introduced in January 2020, SMEs still wait an average of 32 days to get paid and up to 47 days in some cases. If you’re an SME that supplies products and services to large companies, taking control of your cash flow is more effective with third-party lending. 

8.       Automating payment processes delivers a better customer and supplier experience.  

Forward-looking finance teams who have already automated their processes are reaping the benefits, with almost half (47 per cent) improving their customer experience and over 40 per cent providing a better supplier experience.  

9.       Most finance teams (70% of them) still spend 10 hours per week, or 520 per year, on accounts payable (AP) tasks that could be automated. 

While 75% of Chief Financial Officers (CFOs) say they could complete processes and be fully functional while working remotely throughout COVID-19, many still haven’t automated tasks. Key tasks that AP teams still don’t automate include invoice processing, supplier inquiries, supplier payment execution, purchase order matching, new supplier registration, and payment reconciliation. 

10.   Almost 40% of accountants spend half their time on manual tasks. 

Not only does automation cause errors and inefficiencies, but 39% of accounting professionals spend over half their time on manual tasks. And 42% of accountants who have been in the industry for more than 15 years found these manual tasks to be one of the most painful parts of the profession when they joined the industry.  

Implementing solutions that automate accounts payable and accounts receivable processes not only saves time but can also improve employee engagement, particularly in finance and accounting teams. 

Digitisation and point-of-sale lending will drive B2B payments in 2024 and beyond 

Throughout 2024, expect to see a larger share of global B2B payments continuing to become digital. Along with this move, on-demand finance options that allow both suppliers and customers to collaborate on every transaction will boost cash flow across the supply chain. As these transactions flow into businesses, accounts payable and accounts receivable automation solutions will eliminate repetitive manual tasks, with AI-driven tools making it easier to reconcile transactions and complete reporting.  

Of course, as more B2B payments move online, fraud can become more common. Taking measures to prevent fraud and ensure payment gateways are secure will be a top priority for companies moving into 2024. One way of making sure your payment solution has the highest standards of security is by finding the right payment facilitator (PayFac) partner for your business. A PayFac can look after all of the regulatory and administrative burdens of processing payments while ensuring you have the infrastructure to meet mandatory compliance regulations, which has varying levels based on your transaction volume.  

Accelerate your business growth  

The shift to digital B2B payments and the ability to automate repetitive manual tasks can transform how businesses transact while making finance and accounting teams more efficient and strategic. With the right integrated payments provider, such as Spenda, businesses can boost their cash flow, stop the late payments problem at its core, strengthen their relationships with customers and suppliers, and access the capital they need to grow. If you want to hit the ground running in 2024, start by digitising your B2B payment processes and getting access to and offering on-demand finance. 

PPRO, the leading digital payment platform, has integrated Swiss payment method TWINT onto its platform. Processing over 386 million transactions in 2022 alone, TWINT is the preferred way to pay for more than half of the Swiss population and it has become an essential choice for online merchants looking to reach Swiss consumers.

According to PPRO research, the Swiss e-commerce market is currently valued at US$14 billion and is projected to reach US$22 billion by 2027. With over 5 million active users, TWINT has gained significant traction in Switzerland, and now accounts for well over half of mobile payment transactions in the country*. By providing Swiss consumers with their payment method of choice, payment service providers and merchants can ensure a more seamless and efficient checkout experience, which positively impacts conversion rates. 

Adrian Burgess, Head of Payment Partnerships, EMEA at PPRO, said: “We’re thrilled to be able to offer TWINT as part of our portfolio. Payment service providers and merchants globally can now access this essential Swiss payment method in a market where mobile-first ecommerce is seeing impressive growth. Our partnership will unlock the full power of the US$14 billion Swiss e-commerce market for our customers, and open up the rest of Europe for Swiss consumers.”

Adrian Plattner, Chief Sales Officer at TWINT, said: “TWINT's goal is to make our users' lives easier on a daily basis. Our collaboration with PPRO as a connecting platform will enable many international merchants from a diverse range of industries to offer Swiss customers their favorite mobile payment method at checkout. This means that even more consumers and merchants benefit from easy, fast and secure payments via TWINT.”

PXP Financial Group CEO and Founder Kamran Hedjri commented: “We are delighted to have been recognised by the Fintech Power 50 and are incredibly proud of this accolade. PXP Financial stays at the cutting edge of the international fintech and payments communities thanks to the expertise of our people. It is their contributions which have earned us our reputation for shaping the future of our sector.

 

“Our principles are rooted in a commitment to success, fearlessness in driving change, the cultivation of trust and a commitment to continuous learning. In the dynamic realm of payments, we work immensely hard to remain at the forefront by harnessing innovative technologies and new solutions, creating a top-tier payment experience for our customers. Our culture is defined by ambitious objectives within an open and transparent communication ethos, and a relentless pursuit of excellence.

 

“Some fantastic businesses have made this year’s final cut, we are in excellent company and looking forward to driving change together in 2024.”

Flutterwave, Africa’s leading payments technology company has announced its acquisition of money transfer licenses for 13 U.S. states to enable faster, more affordable, and secure transfer of money from the United States to Africa and back. The states include Arizona, Arkansas, Maryland, Michigan, Delaware, Georgia, Maine, Mississippi, Missouri, New Hampshire, Iowa, North Dakota, and South Dakota. The 13 new licenses in addition to its partnership with another licensed financial institution enable Flutterwave to serve customers in 29 states in the U.S.

Money transfer licenses are issued by state regulators to allow financial technology companies to engage in the transmission of money.

These licenses enable Flutterwave’s solutions like Send App, which facilitates money transfer between the U.S. and Africa, and enterprises that use Flutterwave for last-mile payout globally.

“Getting these licenses expands our regulatory footprint, demonstrates our ability to deliver services with safety and soundness, and fosters trust of regulators, partners and customers,” said Stephen Cheng, Executive Vice President, Global Expansion and Partnerships at Flutterwave. “We’re growing and are committed to servicing customer needs in as many geographies as possible with a significant African diaspora.”

“These licenses reflect our commitment to working with regulators across various markets, following their requirements and ensuring the safety of customer funds. We will continue to create an environment of safety and trust.” added Cheng.

Sending money between the U.S. and Africa is challenging for the African diaspora. These licenses enable Flutterwave to make Send App, the super user-friendly money remittance app, available to the African diaspora in the U.S. This will help them send money where their heart is.

“Our mission is to connect Africa to the world and the world to Africa by simplifying payments for endless possibilities,” said Olugbenga Agboola, Founder and CEO at Flutterwave. “These licenses move us one step closer to our vision and we will continue to expand this feat to ensure coverage for all States in the U.S. and beyond.”  

Flutterwave is committed to providing accessible remittance services across the U.S. and will continue its expansion of licensing coverage.

Mambu, the leading SaaS cloud banking platform, has launched its Partner Predictions Report for 2024, delving into the trends that are set to shape the financial landscape in the year ahead, and examining the ways banks, businesses and financial players can respond to these shifts. 

With 2023 seeing generative AI disrupting every industry including software, media, healthcare and more - and big tech companies like Apple and Google, making their presence known within banking, 2024 is set to be another transformative year for the financial services industry. 

In Mambu’s new report, 30 experts from various sectors across big tech and financial services, including Amazon Web Services, Deloitte, Backbase, and Capgemini, forecast trends that are expected to influence the industry in 2024 and beyond. 

The full list of the 2024 predicted trends has been published on Mambu’s website. Here are a few highlights: 

• Generative AI and banking: Digital banks, fintechs, and established financial institutions alike are using generative AI to synthesise financial documents, provide personalised financial recommendations and more, which has helped financial institutions experience massive productivity booms along with greater operational efficiency. Its effect on the industry is only set to increase.

• Mortgages: Retail banks must consider adding technologies to the lending process, which are personalised to customer needs and deliver lifetime value. Financial institutions that fail to enhance the experience they provide during the mortgage process will lose to specialist lenders, which are customising their offerings based on customer behaviour and needs.

• Regulation: Financial services firms must anticipate regulatory changes and recognise the implications for their business, to stay abreast of compliance matters. 2024 will see more regulatory oversight partnering with financial services firms to unlock innovation, while enhancing consumer protection, enriching user experiences, and expanding personalised service offerings.

Fernando Zandona, Chief Executive Officer of Mambu said: Mambu has long been at the forefront of digital transformation in the financial services industry, and next year will be no different. Together with our partners, we’ve evaluated the trends we expect to see across financial services. What’s clear is that embracing technology continues to be key for established banks and new digital challengers alike, if they are to thrive in this fast-paced landscape. At Mambu, we look forward to supporting our customers to transform, so that they can deliver better financial experiences for their customers."

To download the full report, please visit: https://mambu.com/insights/articles/mambu-partner-predictions-report-fintech-trends-for-2024

KOHO Financial Inc., a leading Canadian fintech company, announced today it successfully raised an additional $86 million in a series D extension at an $800 million valuation. New and existing KOHO investors provided the capital, including Drive Capital, Eldridge Industries, HOOPP, Portage, Round13, BDC, and TTV.

Despite a decline in Canadian fintech investment during the first half of 2023, KOHO shines as an exceptional success story in the industry. Notably, it has sustained a consistently positive valuation since the 2021 funding round.

“When we look across the global fintech landscape, it is clear that more and more consumers are choosing newer, mobile-first technology startups that simplify their financial lives. KOHO is emerging as the winner in Canada and we're thrilled to continue to support this ambitious team and mission,” said Chris Olsen, partner at Drive Capital.

The company's overarching success is attributed to the continuous growth of its innovative product range which includes Credit Building, Cover, the ability to check your credit score for free, and an industry-leading 5 percent savings rate. Complementing these products is KOHO’s subscription model, known as KOHO Plans.

“We set out to raise this additional capital with one thing in mind: to accelerate building value for users,” said Daniel Eberhard, CEO and founder of KOHO. “In this economic climate, every dollar counts. This injection puts us in a position to ship faster and push harder for Canadians.”

Looking ahead to 2024, KOHO is dedicated to enhancing Canadians’ financial well-being through innovative features such as increased credit offerings, in-app bill splitting, access to government benefits, and a wide range of other exciting capabilities. In the app, users have the opportunity to remain informed as KOHO's roadmap is public and open for comments.

The Consumer Financial Protection Bureau (CFPB) today took action against Atlantic Union Bank for illegally enrolling thousands of customers in checking account overdraft programs. The CFPB found that Atlantic Union misled consumers who enrolled in this overdraft service by phone and failed to provide proper disclosures. The CFPB is ordering Atlantic Union to refund at least $5 million in illegal overdraft fees and pay a $1.2 million penalty to the CFPB’s victims relief fund.

“Atlantic Union Bank harvested millions of dollars in overdraft fees through a host of illegal practices,” said CFPB Director Rohit Chopra. “Americans are fed up with junk fee scams and the CFPB will continue its work to ensure families are treated fairly.”

Atlantic Union Bank (NYSE: AUB) is a subsidiary of Atlantic Union Bankshares Corporation, a bank holding company headquartered in Richmond, Virginia. As of March 31, 2023, Atlantic Union had over $20 billion in total assets.

The Electronic Fund Transfer Act and its implementing regulation require banks to describe their overdraft service in writing before getting a consumer to opt-in to overdraft coverage for ATM withdrawals and one-time debit card transactions.

The CFPB’s order describes the bank’s illegal conduct and how it improperly communicated with and enrolled consumers in its overdraft program. Specifically, the bank violated federal law by:

• Charging fees without proper consent: At Atlantic Union Bank branches, employees gave oral descriptions of the bank’s overdraft coverage to new customers who opened checking accounts. Employees sought oral confirmation from customers to enroll in overdraft coverage before providing them with the required written disclosures describing the terms of service.
• Misleading customers about the terms and costs of overdraft coverage: For customers who enrolled in overdraft coverage by phone, Atlantic Union Bank employees did not clearly explain which transactions were covered by the service, and made other misleading statements about the terms and conditions of the service. In some calls, bank employees also omitted key information about the cost of the service and the fact that consumers could incur a hefty overdraft fee for each transaction covered by the service.

Enforcement Action

Under the Consumer Financial Protection Act (CFPA), the CFPB has the authority to take action against institutions violating consumer financial laws, including engaging in unfair, deceptive, or abusive acts or practices. The CFPB found Atlantic Union Bank violated the Electronic Fund Transfer Act’s opt-in requirements for overdraft services, and it found the bank engaged in deceptive acts or practices in violation of the CFPA.

The order requires Atlantic Union to end its unlawful practices and:

• Refund $5 million to thousands of consumers: The bank must pay at least $5 million in redress to thousands of affected consumers illegally charged overdraft fees.
• Pay a $1.2 million fine: Atlantic Union will pay a $1.2 million penalty to the CFPB’s victims relief fund.