Quest Payment Systems Pty Ltd, an innovative Australian payments provider has collaborated with Alipay, the largest mobile and online payment company in the world, to launch Alipay in Australian stores.

Starbucks Coffee Company (NASDAQ: SBUX) and Tencent Holdings Limited (SEHK: 00700), a leading provider of internet value-added services in China, today pioneered a strategic partnership to co-create a new social gifting feature on WeChat, China’s leading mobile social communications service, in early 2017.

Having successfully completed the final round of judging, Path Solutions, the Islamic core banking system provider, has won the award for ‘Best Solution Provider in Islamic Banking’ at the Fintech Finance Awards 2016.

The Fintech Finance Awards 2016 have been announced in the December issue of Fintech Finance launched at Fintech Connect Live on the 6^th of December. Path Solutions was selected amongst a list of nominees representing the Islamic financial technology sector, with second runner-up International Turnkey Systems and third Sopra Banking Software.

“We are thrilled to have been recognized once again for our leadership in the Islamic financial technology space”, said Mohammed Kateeb, Group Chairman & CEO at Path Solutions. “The fintech revolution has disrupted the global finance industry and it continues to move forward at full speed. We are proud to be contributing significantly to the growth of this industry by empowering our clients to adjust to this reality and compete effectively. Additionally, this award is a tribute to our best-in-class software solutions and the excellence of the team behind them. It’s no secret that Path Solutions is shaping the future of the Islamic finance segment with leading technology innovations, and our recognition as ‘Best Solution Provider in Islamic Banking’ is an endorsement worth celebrating”.

The Fintech Finance Awards aim to recognise fintech companies with the ability to lead the industry. They also honor organizations that bring lasting and positive change to the financial services sector. “We’re very pleased to award Path Solutions our Gold award for ‘Best Solution Provider in Islamic Banking’ for ethical approach to ensuring Sharia compliance”, declared Ali Paterson, Executive Editor of Fintech Finance.

Fintech Finance is a quarterly publication, with a constant stream of online news providing key decision makers within leading financial services organizations globally with reliable and accurate intelligence on emerging trends and breakthrough technologies, helping them to make informed decisions.

Research from Sungard Availability Services® (Sungard AS), a leading provider of information availability through managed IT, cloud and recovery services, has revealed that financial services (FS) organisations are struggling to keep up with the fast pace of digital change.

Already recognised as a game-changer for the industry, 92 per cent of FS organisations named digital transformation as a priority, with a further 86 per cent claiming it to be “a critical factor in remaining competitive”. The expected benefits are huge – including increased productivity (87 per cent); improving customer satisfaction (51 per cent); and opening new revenue streams (41 per cent).

A Digital Disconnect

However, despite recognising the importance of digital transformation there appears to be a disconnect when it comes to implementation. The research found that nearly half of employees (45 per cent) in FS organisations believe that their employer is falling behind the competition when it comes to adopting the latest digital tools and technologies.

With the FS industry already feeling the heat from ‘digitally-native’ competition – such as the emergence of innovative, UK start-ups Atom Bank and Mondo – this dissatisfaction with technology implementation could not only cause a competitive disadvantage, but also lead to a staff retention crisis.

With 90 per cent of FS workers naming access to digital tools as a crucial part of their role, as well as a further 39 per cent admitting that they would be embarrassed to work for a company that did not provide digital tools, trouble is lies ahead for any organisation not already investing in digital transformation. 

Critically, over a fifth of employees in the sector (21 per cent) claim to have already left a place of employment that did not fulfil their digital expectations, whilst a further 34 per cent have said they leave their present employer to join a more digitally progressive company.  FS organisations must act now to avoid a skills gap and talent retention crisis. 

Keeping Up with The Competition

All of this is creating enormous pressure for the IT department. Along with pressure from staff, over half (57 per cent) of the industry’s IT Decision Makers (ITDMs) fear that their IT team cannot drive digital transformation at the speed the management team expects.

A lack of the appropriate skills is a big hindrance for the FS sector as it looks to adopt more digital technology, with 52 per cent of businesses struggling to integrate new applications with legacy IT – the highest of any sector surveyed.

Keith Tilley, Executive Vice President, global sales & customer services management at Sungard Availability Services comments:

“The rise of new, innovative and digital-native fintech organisations is challenging the established order of the industry, with traditional institutions now being forced to confront the power of technology or risk losing market share to what they might regard as upstarts. Adopting the old maxim of ‘if you can’t beat ‘em, join ‘em’, investment in the technologies that can better enable the FS industry’s ‘old guard’ to meet rapidly changing market demands is going to be crucial to their survival.

“Now fighting a battle on two fronts – maintaining ever-aging legacy systems and implementing the latest digital technology – many FS organisations are facing an upward struggle. For these organisations, IT has become a bear: unruly, challenging and scaring away the best talent. Something must be done to enable them to regain control of their complex IT in order to safeguard their commercial positions.” 

The full report on how organisations are handling the challenges of digital disruption is available to download by visiting Tame the Bear here.

Rival Systems (Rival), a leading provider of trading and risk management software, has just won the 2016 award for Best New Technology Product – Risk Management at the annual FOW International Awards. FOW Magazine officials presented the award last night to Rival CEO Robert D’Arco for the firm’s Rival Risk platform at a dinner and ceremony following the FOW Derivatives World London conference.The FOW honor is the second award Rival has earned in the past month. In November, the firm’s Rival Trader and Rival API offerings won the Buy-Side Technology 2016 award for Best Buy-Side Commodities Trading Platform.

Launched last fall, Rival Risk is the first real-time, fully hosted, HTML-5 based risk platform to bring enterprise risk management capabilities across trading platforms and clearing firms. 

Will Mitting, publisher of FOW Magazine, said:  “The risk management award is always one of the most hotly contested, and Rival Risk won the judges’ plaudits this year. Requirements for risk systems vary significantly for different market participants, and Rival has brought an innovative product to market that solves the problem of calculating risk exposure for illiquid products, among other new initiatives.”

Rival Systems CEO Robert D’Arco said: “We’re truly honored to win this prestigious FOW award.  In today’s regulatory and business environment, it’s critical for firms to have an accurate view of their performance and risk at all times.  Rival Risk makes it easy – with auto-reconciliation, real-time drop copies, advanced algos to accurately price illiquid assets, end-of-day reports and instant email alerts – all   built on our custom HTML5 engine so clients can monitor their business from anywhere.  It’s been a great first year, and we’re driven to continue developing valuable enterprise level solutions for our clients.”

The platform’s innovative algorithms automatically calculate a reliable synthetic price when there is no current market available or the bid/ask spread is very wide, giving risk managers an accurate view into the profit-and-loss (P&L) and risk across all of their trading accounts. When monitoring the performance of futures spread trades, P&L depends on the price accuracy of all the legs, but if a back month is illiquid, risk managers typically have had to just live with uncertainty. By automatically calculating a synthetic price for illiquid futures, Rival Risk eliminates the uncertainty so users can focus on what really matters.  Rival Risk also calculates real-time prices and greeks for any option without users having to set volatility curves.

Most risk management software can view the activity of only one group or clearing firm at a time, presenting a significant challenge when firms have multiple trading groups with separate P&Ls or when they clear through multiple firms. Rival Risk auto-reconciles positions to clearing firm statements at the start of the trading session, and connects to real-time drop copies from clearing firms and exchanges to provide a centralized repository for all trades and positions. 

Users receive end-of-day P&L reports based on preliminary and final settlement prices so they know where they stand well before they receive clearing firm statements the next morning.  Users can also run custom price or volatility scenarios and run option expiration reports across the entire firm.

D’Arco said that Rival’s custom HTML-5 engine and interoperable architecture provide a solid foundation for the firm to continue building innovative features for its clients in the years to come.

FOW is the leading news and data service for the international futures and options industry. The magazine said it received a record number of entries for its awards this year.

Veridium, a leader in biometrics-based authentication technology, today announced the appointment of new CEO James Stickland. Stickland, a seasoned financial technology industry executive with decades of experience, has served in senior executive roles for HSBC, JPMorgan Chase and Cisco, where he specialized in expanding a pipeline of venture capital and accelerating innovation within emerging technology portfolios. He most recently served as managing director of U.K.-based fintech firm Red Deer Systems.

As CEO, Stickland will primarily be focused on driving business strategy, revenue and investment growth, and will be based out of Veridium’s London office. The appointment comes three months after Veridium, formerly known as Hoyos Labs, rebranded and launched its end-to-end biometric authentication solution, VeridiumID. VeridumID is a server-based system for biometric authentication that works in conjunction with an enterprise’s mobile app and Veridium’s front-end, mobile SDK.

Prior to his role at Red Deer Systems, where he was responsible for the firm’s strategic direction, Stickland was director of innovation and investments at HSBC’s fintech division. With a strong track record as a senior executive within both the financial services industry and tech startup sector, he is uniquely well positioned to lead the company as it addresses key security issues impacting the global 2000, financial services, healthcare and government organizations.

“Passwords are dead and can no longer be relied on to safeguard companies or consumers from the threat of fraud and data breaches. Biometrics are now a valid replacement for these authentication efforts,” said James Stickland, CEO, Veridium. “Enterprises across the globe are attempting to tackle the ongoing problems associated with identity and access management, and VeridiumID is perfectly positioned to fully support these efforts. There is an incredible void for a biometric authentication offering that can be adopted on a widespread basis across an enterprise, remain cost-effective and eliminate the major security concerns. Veridium’s technology has cracked this nut and I am very much looking forward to joining the company and taking this solution to market.”

Linedata (NYSE Euronext: LIN), the global solutions provider dedicated to the investment management and credit industries, has launched an updated version of its market-leading portfolio
management system, Linedata Global Hedge.

Designed specifically to meet the changing needs of the hedge fund and institutional investment communities, the new features of Linedata Global Hedge provide clients with total control of their portfolios and transactions, from order entry right through to settlement and custody. Offered to alternatives managers, Linedata's advanced portfolio management solution also serves institutional investment managers and wealth advisors across Europe, North America, and Asia.

Gemalto, the world leader in digital security, today announced that it has entered into agreements to acquire 3M's Identity Management Business for US$850 million. 3M's Identity Management Business is comprised of 3M Cogent Inc., which provides a full spectrum of biometric solutions with a focus in civil identification, border control and law enforcement, and 3M's Document Reader and Secure Materials Businesses.

Headquartered in the United States and present on 3 continents, 3M's Identity Management Business is a trusted partner to governments, law enforcement, border control and civil identification bodies worldwide. It offers world-class biometric based end-to-end solutions enabling identity verification and user-friendly authentication. 3M's Identity Management experienced and highly-skilled team of approximately 450 experts has developed proven biometrics algorithms (finger, face, iris, etc.) and is at the forefront of innovation with the latest multi-modal biometric solutions. Annual revenue of the business is approximately US$215M and profit from operations at US$58M[1].

As Gemalto pursues its expansion and prepares for the future, this acquisition both completes Gemalto Government Programs offer by in-sourcing biometric technology and ideally positions the Company to provide solutions for the promising commercial biometrics market. Our combined offers and experience in the Public sector to manage the enrolment, identification of individuals, flow of passengers and border control should contribute to stronger national security. On the commercial side, as online and mobile transactions grow, new forms of multi-factor authentication and identification are needed to complement physical ID documents. Combining market access and technologies from 3M's Identity Management Business and Gemalto will allow trusted national identities and strong biometric authentication to develop throughout the digital economy.

Once the acquisition is completed, 3M's Identity Management Business will become part of Gemalto Government Programs business which recorded a revenue of €391 million in 2015.

The closing of the transaction is expected to occur in the first half of 2017, after approval from the relevant regulatory and anti-trust authorities and employee consultation where required. After the acquisition is completed, Gemalto will retain a strong financial structure with a net debt/adjusted EBITDA ratio below 1.5. The transaction will be accretive to adjusted Earnings Per Share. As part of our long term strategy and the development of this core technology across our businesses, the acquired business revenue is expected to grow at +10% CAGR with EBITDA margins above 20% by 2020.

"Gemalto is delighted to welcome new members to its international team. 3M's Identity Management Business and Gemalto perfectly fit, solving authentication and identity management pain points across our customer segments, creating immediate increased differentiation and offering additional long term growth perspectives", said Philippe Vallée, Gemalto CEO.

 [1] Source: Proforma carve-out unaudited financials based on due diligence – 12 months ending June 2016

Emerging technology firm Everledger is the first organisation to secure a bottle of wine’s provenance on the blockchain. The bottle, a 2001 Margaux, was certified and secured on the Chai Wine Vault - a joint solution introduced by Everledger and world-renowned fine wine expert Maureen Downey to transform provenance tracking in the fine wine industry.  
 
“We hear daily from our industry partners on the threat fraudulent bottles pose to sales, trust and most importantly reputation,” says Leoni Runge, Everledger’s Head of Fine Wine. “Blockchain enables us to secure the identity of an asset in a way we haven’t been able to before. For the fine wine industry this means the opportunity to add a layer of transparency to every stage of a bottle’s journey across the supply chain.” 
 
The Chai Wine Vault issues certification to bottles authenticated through Maureen Downey’s Chai Method (TCM) where 90+ data points are collected, in addition to high-resolution photography and records of a bottle’s ownership and storage. Everledger takes all this information and creates a permanent, digital incarnation of the bottle that is written permanently into the blockchain. 
 
This digital proof travels with the wine as it moves between different stakeholders in the supply chain, with ownership and storage records updated as the bottle changes hands. Licensed retailers, warehouses, auction houses and other sale platforms can link to the bottle’s digital identity to verify provenance resulting in an increase of an asset’s value for years to come.
 
Built on the Linux Foundation Hyperledger Fabric, The Chai Wine Vault is authenticated and secured by IBM Blockchain that helps bring transparency, security and efficiency to transactions in a permissioned environment. 
 
“Global trade fraud costs billions of dollars each year in lost revenue due to malicious activity or human record-keeping errors,” said Donna Dillenberger, IBM Fellow. “Our work with blockchain shows the potential to dramatically reduce these losses by ingraining transparency and security in the system from the ground up. Working with Everledger in tracing the provenance of diamonds, and now wine, shows how the application of this technology can fundamentally change the way consumer goods are exchanged.” 
 
A proven leader in the diamond industry, Everledger’s focus for the past year has been on securing the provenance of diamonds on the blockchain with 1,000,000 stones currently encrypted. 
 
While a diamond’s provenance is threatened by conflict stones and the tampering of certificates, the wine industry shares the same need to protect a bottle’s identity and provenance in a secure and transparent way. In the fine wine industry where an estimated 20% of international sales are from counterfeit wine, problems with document tampering and fraudulent activity continue to affect the supply chain pipeline from grape to glass. 
 
Until today, authenticators could only identify a counterfeit and were unable to certify an authentic bottle. Certification wasn’t possible given the risk of document tampering and the inability for the certificate to stay connected with the bottle of wine as it changes ownership and location. 
 
Providing a single version of the truth for industry at every stage of a bottle’s lifetime journey, The Chai Wine Vault is part of Everledger’s continued commitment to work with industries where provenance matters to bring transparency to global trade.