Lanistar, the hassle-free banking alternative set to revolutionise how customers streamline their money, has today announced it has opened a new European office in Athens, as part of its rapid expansion plans. 

The office will serve as a hub for the company’s compliance specialists, with the team there working as an extension of its London headquarters and its customer service centre in Skopje, Macedonia. Set to launch this November, Lanistar will have 400 employees in total across its UK and European offices.

The new compliance hub will host a robust fraud and transaction monitoring department and support an aggressive hiring plan, with the company aiming to expand Lanistar’s Greece headcount and create more than 300 jobs in the region, growing it to 1000 in the long-term. The company is currently hiring more than 200 experts for roles across KYC, financial crime and anti-money laundering divisions, including a Head of Financial Crime supported by a huge tech team to manage the entire team from the Athens hub. 

Lanistar will aim to become the first fintech company to reach a one billion pound valuation within a year of launch Q4 2020. Lanistar is creating a new polymorphic debit card to help customers streamline their money via new technology and open banking. The company will provide multi-currency accounts, premium services and additional features to revolutionise how their clients’ money is managed.

CEO & Founder, Gurhan Kiziloz, said: “In the run up to Lanistar’s momentous launch, where we will redefine the way in which young customers manage their money, we’re proud to be creating jobs and a new office in Greece. We chose Athens for our compliance office because we believe it will attract a promising pool of existing talent in the sector, and we’re excited to build a strong compliance team that ensures Lanistar is at the forefront of working against financial crime. This investment will ensure Lanistar will operate at the highest levels of all regulatory environments and be able to foresee and be prepared for any changes to come.”

Global analytics software provider FICO today released its August 2020 analysis of UK card trends which shows the continuing signs of financial stress due to COVID-19.

FICO monitors the UK credit market using data reported by the UK’s leading credit card issuers through its FICO® Benchmark Reporting Service. FICO’s analysis of August 2020 activity provides a clear picture of the ongoing impact of COVID-19 on consumer finances.

For more information visit https://fico.com/en/products/fico-triad-customer-manager

“Although early-stage delinquency rates (missed one or two payments) remain below 2019 levels, the uplift seen in July in consumers missing one payment continued in August and has meant a segment of accounts rolling straight into two missed payments,” explained Stacey West, principal consultant for FICO® Advisors. “But payment deferrals and furlough payments continue to mask the true scale of the financial stress being faced by many UK adults.

“We believe the levels of financial stress will become clearer in the coming months. Furlough payments were reduced in September from 80% to 70% and in this final month of October will fall to 60%. Although the new Job Support Scheme starts in November for at least six months, this only tops up the salaries of those working reduced hours due to COVID-19. For those whose jobs are no longer viable, financial pressure will start to increase and the approach of Christmas will further compound the situation.”

Spend on UK cards continues to increase

Average spending on UK credit cards increased in August for the third consecutive month, up 6.9 percent to £639, and was only 4.8 percent lower than a year ago. For the period January-August 2020, sales were down 1.4 percent, compared to increasing 4.4 percent in the same period in 2019.

West added: “As further businesses reopened in August, along with the school holidays, the increase in spending was not unexpected. But expanding regional lockdowns and a potential nationwide lockdown will impact spend trends in the coming months. We will also soon start to see how seasonal spend patterns compare to 2019.”

Card usage continues to increase

Mirroring the average spend trend, the percentage of active accounts also increased for three consecutive months, although it remains 6.2 percent lower than in August 2019.

Unused credit a concern

The levels of unused exposure on active accounts remain high, illustrated by 29.5 percent of accounts having a limit in the range of £5,001 to £10,000 with their average balance being only £1,241.

“The concern remains that with further card usage and Christmas approaching,  some consumers will not be able to afford to support their existing spend, much less the unused credit that may be available to them,” added West. “For some a credit card may be the only spending option available.

“With the FCA’s focus on lenders treating the most vulnerable as fairly as possible, issuers could consider expanding their affordability assessments to include existing as well as new credit to proactively identify in advance those who may have payment issues and offer the most suitable treatment before payments start to be missed.”

Accounts in credit remain impacted by refunds

The percentage of accounts in credit (have excess funds) and the average amount in credit decreased for the second consecutive month. Accounts < 1 year old continued to see the average amount increase. The average amount in credit remans more than double that seen in August 2019.

West added: “There are now signs of the volume of holiday cancellation refunds slowing. With the end of the summer school holidays and the uncertainty around travel restrictions and refund rights, it is anticipated that the refunds will continue to decrease resulting in pre COVID-19 values being seen.”

Accounts over their limit stabilise

Normally August sees an increase in the proportion of accounts exceeding their limit due to holiday spending. However, August 2020 saw the percentage stabilise month on month and it was 42 percent lower than August 2019, and 41 percent lower than in January 2020, compared to a drop of 7.6 percent over the same period in 2019. Although the average amount over limit is 29.9 percent higher than a year ago, it decreased for the first time since January.

West added: “We may now be starting to see the early impact of interest being added to the balance of those with a payment deferral. This is coupled with reduced opportunities to increase limits and lower payments being made. There may, therefore, be further need for lenders to respond with new strategies for these customers.”

Monthly payments continue to increase

The percentage of payments to balance increased in August for the second month in a row. The percentage of consumers paying the full balance also increased in the month - 6.9 percent higher than a year ago.

“Consumers who took a payment holiday that potentially did not need to are now starting to resume payments and this is driving the uplift and outweighing at present the early signs of increasing missed payments,” said Stacey West. “With the end of the furlough scheme and ability to request payment deferrals approaching, along with the introduction of the Job Support Scheme in November as well as the usual increased spending for Christmas, it’s likely that payment trends will continue to be impacted for many months.”

Early signs of deterioration in two missed payment rates and increasing 1 missed payment rates

August saw a second month of increase in the one missed payment rates. The percentage of accounts missing one payment has risen 8.4 percent since June and the value compared to the total balance by 17%. Similar results were seen for the first increase in two missed payment rates since May.

West added: “The continued increase in consumers with one missed payment and this flowing into two missed payments a month later may be the start of the anticipated increase in consumers being unable to resume payments or no longer being able to maintain their existing payment habits.

“With September results likely to reveal early indications of the impact of the reduction in furlough payments, issuers are now focusing on the best ways to support consumers suffering or at a risk of suffering financial stress due to COVID-19. New approaches and data will be needed to help identify those affected (on furlough, in vulnerable sectors, resorting to high interest borrowing etc,) and communicate appropriately with them. Open banking transactional data could form a key part in customer communications whether before or after missed payments.”

New account openings remain to stable

In August the percentage of new accounts (compared to total accounts) was stable month on month, although it is 67 percent lower than a year ago; new account openings January vs. August was also 47 percent lower, compared to a 75 percent increase in the same period in 2019. The average new balance peaked in May and has been decreasing since and is now only 5 percent lower than August 2019.

West added: “There is still caution being shown by issuers in offering new credit. But this highlights a concern that some consumers will turn to higher interest alternatives, pushing them further into financial difficulties.”

Cash spend on cards

The percentage of consumers using cash has been decreasing since September 2019 and during the national lockdown this decline rapidly accelerated. However, August 2020 saw a 2.5 percent increase, although levels are still 54.7 percent lower year on year.

These card performance figures are part of the data shared with subscribers of the FICO® Benchmark Reporting Service. The data sample comes from client reports generated by the FICO® TRIAD® Customer Manager solution in use by some 80 percent of UK card issuers. Issuers wishing to subscribe to this service can contact staceywest@fico.com.

Today, Mastercard and Monese, the European banking service provider, announced a new multi-year strategic partnership to further enhance local banking services for the underserved across Europe, with Monese becoming a principal Mastercard issuer.

With its multi-currency accounts that are available in 31 countries, Monese’s new partnership with Mastercard provides its customers access to Mastercard’s global acceptance network, allowing them to spend at the millions of locations worldwide at which Mastercard is accepted.

Monese and Mastercard are closely aligned in their commitment to financial inclusion. Many of Monese’s customers are working in the gig economy, are self-employed, or living in a different European country to that in which they were born, and are not therefore well served by mainstream banks.  The two companies aim to ensure that these consumers have access to banking services and electronic payments which may otherwise be difficult or impossible for them to access.

Under this partnership, the two companies will deliver industry leading card functionality and innovative payments features within the Monese app to meet the rapidly developing needs of underserved consumers across Europe.

The partnership supports Monese’s commitment to provide a more localised product offering to consumers across existing European markets, as well as the strengthening its core product offering and capabilities.

Monese Founder and CEO Norris Koppel, said: “We’re excited to announce this partnership with Mastercard today and build on our long and successful relationship. This significant deal further develops an ambitious localisation strategy we have been pursuing for a number of years and positions us well for the next stage of our growth in the UK and European markets.  We are committed to delivering more local experiences for our customers across multiple European markets, as well as making it easier for those who have previously been underserved by traditional banks to manage their money.  We are delighted to have partners such as Mastercard who are aligned to this vision.”

Mastercard’s European President, Mark Barnett, added: “Mastercard has an ongoing commitment to bringing the underserved into the digital and financial economy and to that end we are delighted to be the partner of choice of partners like Monese. As we build on our partnership, we look forward to bringing more people into the financial system as Monese continues to increase its presence and offering across Europe.”

So far this year, Monese has launched two new local country-IBANs and a cash top-up capability in multiple European markets, critical account functionalities that provide its European customers with a multi-product feature local banking experience. In July, Monese became the first European neobank to offer French IBANs to its customers. Local IBANs make it easy for customers in these countries to do local transactions, such as receiving their salaries directly into their Monese accounts, as foreign IBANs are not always accepted by employers.

In July 2020, Monese more than doubled its cash top-up network by launching thousands of new locations in Europe via a partnership with Paysafe. Cash top-up functionality is another key element that customers expect from their primary account. Together with Monese’s Post Office and PayPoint partnerships in the UK, Monese has created one of the largest cash networks in Europe which enables Monese customers to top up cash at over 87,000 locations.

The company now has one of the largest ranges of local IBANs and cash loading capabilities in Europe and intends to launch additional IBANs in Europe in the coming months.

• 19.10.2020 -- 09:08 am

Financial IT speaks with Ed Adshead-Grant, GM Payments & Cash Management at Bottomline Technologies

Leading enterprise connectivity platform Yapily has announced that it is working with BUX, Europe’s largest mobile broker. The new partnership will enable German users of BUX Zero to seamlessly fund their accounts and build an investment portfolio in a matter of seconds.

Through partnering with Yapily, BUX Zero customers can conveniently make deposits to their BUX Zero accounts from within their bank’s mobile banking app. Removing the friction involved in investing and opening access to bank accounts in Germany.

This partnership will allow German BUX Zero users to begin investing in the brands and companies they care about commission-free, in an easy, and intuitive way. With a simple and quick onboarding solution already in place, funding an account will now be equally as quick and simple.

Typically, German BUX Zero users funded their accounts through bank transfers; taking on average one working day to arrive. The integration of Yapily’s open banking API enables BUX Zero to enhance its customers’ experience by removing the friction, which speeds up the process in making deposits to their BUX Zero accounts. 

The new collaboration further consolidates Yapily’s position in Europe as the backbone of open banking, and the infrastructure that partners need in order to take advantage of the benefits that open finance will bring. By entering Germany, Yapily now has near total European coverage.  

Nick Bortot, Founder & CEO of BUX, said: “Efficiency and ease-of-use are at the core of the BUX Zero investing experience, and by introducing Yapily’s API technology to our platform, we will make the account funding experience even simpler for our German clients. With our zero-commission offering, rapid onboarding process and seamless user-experience, we are constantly innovating to make the investing experience smoother for our clients who are digital natives. This new generation of investors requires an investing experience that fits their mobile-first lifestyle, and BUX Zero is at the forefront of providing a better solution for retail investors. As BUX Zero continues to expand across Europe, partnering with Yapily will allow us to adapt to local markets more efficiently." 

Stefano Vaccino, CEO of Yapily, said: “Drawing on our technical expertise, we’ve been able to provide BUX’s German customers with a better customer experience and greater control over their finances. We are integrated with 80% of Germany’s banks; which enables us to provide companies like BUX with the infrastructure they need in order to provide the benefits of open banking to users beyond their native market. 

“Through partnering with BUX, we’re continuing our mission to further expand the reach of open banking across Europe. We believe open banking will enable fairer and better financial products and services for all. And we’re pleased to have found a partner in BUX who believes the same. We look forward to a long partnership and underpinning future products and services which can fuel greater financial accessibility.”

Leading payments issuer processor, Global Processing Services (GPS) has secured a strategic investment from strategic partner, Visa Inc., the world’s leader in digital payments. Backed by UK growth private equity firm, Dunedin, this strategic investment will accelerate GPS’ global expansion, following its success in launching new and innovative fintechs and digital banks in Europe and South East Asia, including Revolut and Starling Bank.

Joanne Dewar, Chief Executive Officer at GPS, commented: “This strategic partnership with Visa is a fantastic step in the GPS growth journey, providing both recognition as a trusted and proven processing provider and further extends our reach. We have great relationships with Visa around the world and we look forward to taking these from strength to strength as we work together to showcase both of our capabilities. GPS is uniquely focused on customer success and we welcome the opportunity to spotlight the role we play at the epicentre of the fintech story.”

GPS has proven to be the Paytech Pioneer™ that has powered the fintech revolution by enabling brands to provide hyper-personalised user experiences, placing flexibility and control in the hands of the cardholder. GPS is a leading issuer processor positioned to support fintechs, digital banks and e-wallet providers on their growth journey, from the agility of a proof-of-concept to a fully scaled global offering.

With the support of the UK Department for International Trade’s Fintech Bridges and the Singaporean Economic Development Board, GPS successfully expanded into the APAC region last year, and has already delivered successful programmes including Xinja, the second Australian neobank to be made an authorised deposit-taking institution, and WeLab Bank, the first homegrown virtual bank in Hong Kong. Having been selected as one of the preferred issuer processors for Visa’s APAC Fintech Fastrack programme, GPS has worked closely with Visa to deliver a next generation showcase for the 2021 Tokyo Summer Olympics.

Now, the company will be looking to replicate its European and APAC accomplishments across other regions as one of Visa’s preferred processors.

“The entire payments industry is evolving at speed, which has only accelerated further with the increased preference and convenience for digital payments over cash transactions. Through innovation and solid partnerships, we will successfully accelerate the delivery of better financial experiences for every customer,” Dewar continued.

Kevin Jacques, Vice President, Visa Ventures, added: “GPS is an example of how we continue to invest in, and partner with, companies that provide valuable capabilities to the ecosystem and have potential to advance the payments industry. The business has a strong balance sheet, engaging leadership and growth across key regions, and we believe it will continue to be an important enabler for payments processing.”

Kevin Murphy, CEO of Crosscard and representative of the GPS Strategic Customer Council, commented: “The Visa investment is a resounding endorsement of GPS’ market-leading issuer processing capabilities, with some of the biggest global digital brands having benefitted from its ability to launch innovative products quickly and reliably. We commend GPS for its partner-centric approach and unparalleled flexibility which have been invaluable in accelerating our growth as one of Europe’s leading digital issuing solutions provider, and for supporting us on our journey whilst we pivoted towards focusing on our issuing business.”

“With GPS having established its place as the trailblazer in fintech processing, the Visa investment is a natural and logical next step in its evolution towards becoming a global payments processing leader,” Murphy concluded.

Financial Technology Partners LP and FTP Securities LLC (FT Partners) served as the exclusive financial and strategic advisor to GPS in this transaction.

NatWest and ITV have today announced the launch of a new competition where three of the UK’s brightest small businesses will win their own TV advert worth £150,000, produced by acclaimed London-based advertising agency Pablo, with guaranteed, tailored airtime on ITV and through NatWest’s owned channels.

The high street bank and broadcaster have combined forces to show their support to the UK’s small business sector following the most challenging year for SMEs in recent history. Open to any sector and size, business owners need to be based in the UK and over 18 to enter, with entries open until midnight on 2 November at natwestbusinesshub.com/extraordinary.

The campaign kicks off on 17 October with the first in the series of the four adverts featuring Cornwall based success story Buttermilk, who specialise in a wide range of confectionary, with an inclusive and sustainable purpose. The business began as a fudge shop in Padstow in 1964, and today now ships its diverse range of sweet treats to customers in 10 different countries, and to most of the UK’s major supermarkets.

Margaret Jobling, Chief Marketing Officer, NatWest Group, said: “Small business owners around the UK have been through an unbelievably difficult year, and have fought hard to continue supporting their customers through the challenges that the pandemic has brought all of us, so we want to give three extraordinary businesses the opportunity to share their message and build their brand through a professionally filmed and produced ad, as well as tailored airtime.

As the biggest business bank in the UK, NatWest is delighted to be teaming up with ITV and Pablo to offer this unique opportunity to three of the UK’s best up and coming businesses.”

Mark Trinder, Director of Commercial Sales and Partnerships at ITV, said: “Lockdown has posed challenges and difficulties for so many businesses, and we have constantly been looking at agile and effective ways of helping brands to stay connected and closer to their customers. This partnership with NatWest and Pablo is all about honouring creativity and ingenuity, and will provide three small businesses with an invaluable free advertising package that will keep them front of mind throughout these uncertain times.”

NatWest will also provide over 50 additional support packages to the top entrants, including places on NatWest’s Accelerator programme for entrepreneurs, 1:1 coaching sessions, and advertising spend for LinkedIn. Business owners can enter by visiting natwestbusinesshub.com/extraordinary.

Earlier this year, ITV launched ITV Backing Business, an initiative designed to support businesses as they return to growth over the coming months. The Backing Business hub offers a specially tailored toolkit providing marketing support, digital content, information, resources, special offers and trading flexibility. Additionally ITV commercial offered support packages specifically targeting universities, charities and arts heritage.

* Entrants must be UK residents, aged 18 and over.

Debit card spending in the UK reached a record high of £59.1 billion in July, data published by UK Finance has revealed. This is up almost a fifth (17.9 per cent) compared to the previous month and an increase of 9.4 per cent compared to July last year. Credit card spending in July amounted to £15 billion, an increase of 15 per cent compared to the previous month, but 24.8 per cent below levels seen last year.

The figures suggest that consumers may be choosing to make purchases using their debit card rather than their credit card amid ongoing economic uncertainty. Consumers are also likely to be making fewer high-value purchases that are typically made using credit cards to benefit from additional protections, for example for flights, holidays abroad and white goods. In addition, the increase in debit card spending may have been driven by retailers encouraging customers to pay by card or contactless payments where possible.

Online card spending also reached a record high of £21.8 billion in July, suggesting the pandemic has accelerated the ongoing shift towards consumers shopping for goods and services online. 41 per cent of total card spending by value took place online during the month. This is up from 30 per cent in February, but down from a high of 46 per cent in April when opportunities to spend in physical retail stores were more limited as a result of lockdown restrictions.

The data indicates that consumers have continued to make use of the higher £45 contactless limit introduced by the banking and finance industry earlier this year. Contactless card spending amounted to £8 billion in July, up 22.5 per cent from the previous month and an 11.1 per cent increase compared to last year. The average value of a contactless payment reached £12.08 in July, compared to £9.42 in February. This suggests consumers are using contactless payments for higher-value transactions in the retail and hospitality sector. At the same time, there are likely to have been fewer low-value contactless transactions for public transport.

A total of 1.2 billion card transactions were made in July as lockdown restrictions continued to ease. This is an 18 per cent increase compared to June, but the figures remain 30.4 per cent below those seen in July 2019.

Of these, 662 million card transactions were made using contactless, up by 27.7 per cent compared to the previous month, but 13.5 per cent down compared to last year. Contactless payments accounted for almost six in ten debit card transactions and four in ten credit card transactions during the month.

Eric Leenders, Managing Director of Personal Finance, UK Finance, said:

“This data suggests the pandemic has accelerated the shift towards internet shopping, with card spending online reaching a record high in July.

“We are also seeing a marked increase in debit card spending, driven by the growing use of contactless as shoppers take advantage of the new £45 payment limit to make higher value transactions. Credit card spending has recovered slightly but continues to be impacted by ongoing economic uncertainty and fewer opportunities to spend on high value items such as holidays.

“The banking and finance industry’s clear plan continues to support customers during this difficult time, as we work closely with the government and regulators to ensure people can pay in a way that suits them.”

________________________________

1. UK Finance is the collective voice for the banking and finance industry. Representing more than 250 firms across the industry, we act to enhance competitiveness, support customers and facilitate innovation.
    
2. Full data tables are available here.
    
3. The banking and finance industry has put in place a clear plan to help Britain through:

• Two million mortgage payment deferrals
• 27 million interest-free overdrafts offered, 1.1 million payment deferrals on credit cards and over 735,000 payment deferrals on personal loans.
• £57.3 billion of lending to over 1.32 million businesses through government Covid-19 lending schemes
• Protecting customers from scams and fraud
• £45 limit for contactless payments
  
  4. Please note that data on UK cardholders is different to data on card activity in the UK. Data on UK cardholders refers to transactions made either inside the UK or overseas on cards issued to UK residents and reported by card issuers. Data on card activity in the UK refers to transactions made in the UK only, both on UK-issued cards and cards issued overseas, this data is provided by acquirers.
  
  5. A  summary of our annual UK Payment Markets 2020 Report containing detailed analysis of the use of all types of payments in the UK, can be found here: https://www.ukfinance.org.uk/policy-and-guidance/reports-publications/uk-payment-markets-2020
  
  6. The quarterly Household Finance Review containing analysis and economic commentary on household finance in the UK, can be found here: https://www.ukfinance.org.uk/data-and-research/data/household-finance/household-finance-review
  
  7. The monthly credit card data has been re-stated back to January 2019 to increase our market coverage to 97 per cent, providing a more representative picture of the credit card market.

Female participation in the RegTech industry has grown over the last few years, with women now accounting for up to 35 per cent of the RegTech workforce, but there is more to do - especially when it comes to women moving into leadership roles. 

In the latest episode of the RegTech 2020 podcast, from Encompass Corporation, three female experts, Victoria Martin from 11:FS, Marisol Lopez Mallado from IHS Markit, and Lucy Heavens, co-founder of RegTech Women, debated the state of female participation in the industry, and how  to improve gender equality. 

Victoria, 11:FS’ Head of Risk, drew reference to recent data, which revealed that, in 2019, the UK added 60,000 new tech roles but only 16 per cent of those were filled by women. Furthermore, 17 per cent of FinTech founders are women and only 3 per cent of investments go to female founded firms.

“We’ve seen the industry change quite considerably, but for all of us, and for me personally, I still think we’ve got quite a huge way to go, especially when it comes to encouraging more of the younger women into the RegTech industry, through to supporting women to move up that career ladder and take on more senior and C-level roles,” Lucy Heavens commented.

When discussing how women can contribute to making RegTech a much more evolved industry, Victoria mentioned that women tend to have  more natural ability in some areas of compliance.

She commented: “One of the reasons [for that] is the skill set that comes with being a compliance officer. It’s so important to have good advocacy skills and be able to see both sides. I also tend to think women can be a lot more risk averse as well”

Later in the podcast, Marisol Lopez Mellado, Global Head of KYC Services at IHS Markit, suggested that retaining women in RegTech and FinTech is just as important as getting them there in the first place:

“Trying to create a diverse environment is imperative… But, for the industry to change as a whole, there must be career progression for these roles [for women]. So that it’s not just about women coming into a role, but how are they going to stay, how are they going to reach this point of C-level and leadership roles, which is where we need more women.”

Marisol went on to say: “Working for organisations that believe in inclusion and diversity as being critical to global success  is key, as well as organisations that remain committed to increasing the female population at board level.”

You can listen to the full episode of RegTech 20:20 here [https://www.encompasscorporation.com/regtech2020-podcast/]. Or on all major podcast streaming platforms, including iTunes and Spotify.