Published
- 09:00 am
- 03:00 am
ClearBank, the enabler of real-time clearing and embedded banking for financial institutions, today announces a new report on the Electronic Money Institution (EMI) market in the UK and Europe. The independent report, commissioned by ClearBank and produced by leading analyst house Celent, finds that EMIs now hold deposits of €35 billion across Europe—an increase of 84% from 2019—but often struggle to find a banking partner that meets their needs.
The report, UK and European banks and EMIs: friends or foes?, is based on in-depth interviews with over a dozen industry players, including banks, EMIs, and fintechs that are EMI clients. The report estimates the value of funds held and safeguarded by EMIs in the UK and Europe, based on national and EU-level reports and financial data from EMIs. It also examines the growing systemic importance of EMIs, and how this sector is reacting to a particularly challenging few years and the resulting regulatory focus.
An e-money license allows firms to offer limited payment and financial services and does not require the same high capital reserves as a banking license. Unlike banks, deposits held by an EMI are not guaranteed by a deposit protection scheme, however, an EMI is required to safeguard its customers’ funds at all times, through third-party arrangements.
The report highlights the interconnectedness and complexity of the fintech ecosystem, where banks, EMIs and other fintechs are as much cooperative partners as they are rivals—there are very few cases where an EMI can offer its services without a bank involved somewhere in the value chain. Banks provide safeguarding services, credit and banking services, and act as sponsors for account-to-account payment systems.
By considering EMIs as key clients and partners in offering embedded finance, there is an opportunity for partner banks to capture a greater share of the €35bn in deposits across the UK and EU.
The report also examines how the EMIs, and their relationships with banks, are affected by the fintech downturn and increased regulatory pressure. It finds that:
· Safeguarding of customer funds, as required by Electronic Money Regulations, is receiving more scrutiny from the customers and partners of EMIs. However, EMIs have limited choice in the safeguarding arrangements open to them.
· Many EMIs are looking to add new banking partners to provide additional risk mitigation and resilience.
· When an EMI is selecting a banking partner, ease of integration and risk appetite alignment are much more important than price.
· EMIs expect regulation to tighten in response to market failures. However, this is welcomed by EMIs as a way to increase their reputation by demonstrating under higher compliance standards. For banks worried about counter-party risk, this will increase confidence in EMIs and remove barriers to collaboration.
“EMIs have played a key role in the growth of fintech and are now systemically important. We live in an age of ‘coopetition’, with the same entities competing in one area and cooperating elsewhere,” said Zilvinas Bareisis, Head of Retail Banking and Payments at Celent, and one of the co-authors of the report. “This is the case for banks and EMIs—they can compete and partner on the way to capturing this opportunity.”
“EMIs fill the gap left by incumbent banks unwilling or unable to support the fintech sector and now play a significant role in how financial services are delivered,” said John Salter, Chief Customer Officer, ClearBank. “Their customers and regulators are, partly in response to recent failings, demanding a greater emphasis on safeguarding, operational resiliency, fraud and AML controls. This report supports our core belief that cooperation and collaboration are key to better services for consumers and businesses”.
- 07:00 am
Leading payment orchestration provider BR-DGE has today announced its latest collaboration with Discover® Global Network, a leading payments network, to support its global growth.
This alliance will enable BR-DGE’s merchants to access the fastest-growing global payments network, with Discover Global Network Cards spending over $550 billion globally in 2022. Further, utilizing BR-DGE’s market-leading position, Discover Global Network will now access a global network that empowers merchants across travel, leisure, retail, and beyond. This will support the strong global acceptance trajectory of Discover Global Network, currently sitting at 70 million merchant acceptance points and millions of micro-merchants.
This collaboration with Discover Global Network will help drive acceptance and enable BR-DGE merchants to provide greater payment optionality to customers seeking more from the checkout experience. BR-DGE merchants will be able to accept cards that run on Discover Global Network, ensuring global customers can pay how, when, and where they want. Earlier this year, BR-DGE research found that 32% of consumers say that the availability of payment options is a high priority in their purchasing decisions, making it a key focus for merchants.
Crossing borders
Aligning with BR-DGE’s mission to help merchants build brand loyalty, Discover Global Network strives to offer cardholders a seamless payment experience. When combined with BR-DGE’s cross-border optimization and market expansion capabilities, BR-DGE’s merchants will expand their offering to international travelers, including the 305M+ Discover Global Network Cardholders around the world, comprised of over 25 network alliances, Discover®, and Diners Club International® Cardholders.
Commenting on the recent news, Tom Voaden, Head of Partnership at BR-DGE said: “Discover is a global leader in payments, and we are delighted to now offer our merchants the ability to meet the needs of hundreds of millions of Discover card users. By joining with leading payment providers, such as Discover, we can continue offering merchants a platform that allows them to select the best payment solutions to help grow their business, build loyalty, and exceed consumer expectations.”
“BR-DGE is an innovative payment orchestrator that supports our focus in the travel and retail verticals, making it a valuable connection for us,” said Rajiv Gupta, vice president of international markets at Discover. “Our work together will enable access to our global payments network and help merchants streamline their payment processes.”
BR-DGE’s Partnership Program brings together over 300 payment providers and technology solutions to enable merchants to boost authorization rates, optimize end-to-end payment journeys, increase their commercial leverage, and improve their overall payment resilience.
By leveraging BR-DGE’s independent payment orchestration platform and its network of market-leading payment innovators, Discover is empowered to acquire new merchants, accelerate onboarding, and gain access to a wealth of marketing and sales resources.
Led by CEO Thomas Gillan, BR-DGE is revolutionizing online payments for merchants by offering a universe of payment options via a single point of integration. This reflects BR-DGE’s ambitions to work with partners across the payments space to give merchants full flexibility in their payment offerings and give consumers greater choice. Alongside promoting wider payment options, the BR-DGE platform also supports merchants in optimizing customer experiences, reducing friction while improving security and building customer loyalty.
- 08:00 am
SellersFi, a global e-commerce financing and financial services company, today announced a financing solution with Amazon that will provide eligible Amazon sellers with access to credit lines of up to $10 million through Amazon Lending.
Through this relationship, eligible Amazon sellers can now seamlessly access broader lines of credit to support their Amazon stores.
“SellersFi was launched seven years ago to address e-commerce sellers’ paramount challenge: to secure the right capital to grow their businesses,” stated Ricardo Pero, co-founder and CEO of SellersFi. “This relationship with Amazon highlights our dedication to transforming e-commerce financing to empower small and medium-sized businesses with the accessible financial tools they need to focus their energy and aspirations on amplifying their businesses and attaining exceptional growth."
Sellers face a range of hurdles in building successful online businesses including competition, order fulfillment, visitor conversion, marketing and more. Even when effectively addressing those factors, however, 32% of e-commerce startups fail due to running out of money, according to research by Marketing Signals. These lines of credit from SellersFi and Amazon Lending are meant to support sellers experiencing such challenges.
"Working with the Amazon Lending team has been an exceptional experience for SellersFi," said Leonardo Felisberto, Head of Global Business Development and Partnerships at SellersFi. "Their dedication to empowering sellers aligns perfectly with our mission, and together, we've unlocked more possibilities for e-commerce entrepreneurs. We’re hopeful this can be another step toward supporting the growth aspirations of online sellers in the US and beyond."
“Amazon is committed to providing our sellers with flexible and convenient access to capital, regardless of their size,” said Tai Koottatep, director and general manager, Amazon WW B2B Payments & Lending. “Through this lending option with SellersFi, we’re able to strengthen that commitment and offer sellers even more opportunities to grow their business.”
This announcement bolsters SellersFi’s expansion as a financial services platform. The company currently offers working capital, prepaid debit cards and digital wallets with insurance, business credit and debit, and checking accounts in the pipeline.
- 09:00 am
Brite Payments, a leader in instant bank payments, today announced that it has partnered with Northe, a one-stop platform for electric vehicle (EV) charging, to provide customers with a more streamlined payments process.
Founded in Stockholm in 2020, and buoyed by fresh funding in early 2023, Northe is connected to an extensive network of public, semi-public, and private partners. It provides customers with an all-in-one platform that facilitates and automates the management of everyday EV charging needs. Via the Northe charging app, private and business customers access thousands of charging stations, connecting multiple operators and removing friction in the payment and reimbursement process.
Brite Payments, one of Sweden’s fastest-growing fintechs, enables instant account-to-account (A2A) payments and payouts based on Europe’s open banking infrastructure. The first phase of Northe’s collaboration with Brite involves the use of Brite Instant Payouts to equip leasing companies with a streamlined way to reimburse drivers for home EV charging. The partnership also includes use of Brite Data Solutions (open banking-enabled AIS – Account Information Services) to verify account holder information for reimbursements.
“Our mission is to solve the charging issues that many fleet operators and EV customers encounter, which threaten to hold back the transition away from fossil fuels to greener alternatives,” said Abdulwahid Ahmed, Chief Operations Officer, Northe. “With Brite, we can give leasing companies the tools they need to simplify the reimbursement process and give users a more seamless charging experience. Payment and reimbursement processes are a critical factor in customer retention and satisfaction in our dynamic and fast-moving industry.”
Sweden and Norway are established global leaders in e-mobility, and many European countries are approaching a tipping point as falling costs and advancing technology fuel the transition to EVs. However, significant infrastructure challenges remain, especially for businesses managing charging, payments and reimbursements for commercial EV fleets. Rental car companies can also make EV rentals more attractive for customers by offering all-in-one charging and payment solutions – as illustrated by Northe’s collaboration with Avis.
“Northe is proof that Nordic companies are tackling the challenges of EV transformation head on, with innovative solutions that help facilitate the green transition,” said Sebastian Pruszynski, VP – Business Development, Brite Payments. “We’re excited to be supporting Northe’s mission, starting with our Data and Instant Payouts solutions, to make EV charging services simpler and more intuitive. With Northe expanding rapidly and offering services across a growing number of European countries, Brite is also well positioned to support their future growth aspirations.”
“The EV sector as a whole is growing rapidly, and Northe will be expanding geographically to serve customers in more European markets – Brite gives us the reliability and scalability we need to confidently enter new markets and supercharge the capabilities of our all-in-one platform,” concluded Ahmed.
- 03:00 am
Today Plumery, a leader in mobile and digital banking technology, and Sumsub, a global full-cycle verification platform, are pleased to announce their technological partnership. Within the partnership, Plumery has integrated Sumsub’s capabilities into its new-generation ‘Headless’ digital banking engagement platform, launching first with Sumsub’s Know Your Customer (KYC) suite.
The combined solution will enable both traditional and challenger banks to create highly customizable onboarding flows using Plumery’s serverless onboarding orchestration, and Sumsub’s fully compliant KYC flows, saving them up to 80% on implementation costs and time, as well as over 50% of onboarding costs for each customer.
Plumery’s ‘Headless’ platform allows banks, fintechs, and other financial institutions to build applications on top of its APIs. The solution does not require compromising their applications’ user interface (UI) or core banking solution, ensuring highly-tailored onboarding journeys for their private and business banking customers. Sumsub’s pre-integrated KYC and anti-money laundering solutions verify new customers through a number of factors, including email addresses, tax residency, and proof of address (PoA), as well as screen identity documents and ensure new users pass liveness checks.
“We’re super-excited to become a technology partner with Sumsub,” said Ben Goldin, CEO at Plumery. "Their focus on both frictionless and compliant customer experiences, as well as excellent developer experience means solutions can be delivered faster than ever. Digital and mobile onboarding has become an essential part of any digital banking experience in the last 5 years. Now, together with Sumsub, our joint customers can integrate this capability faster and more cheaply than ever before, to launch new propositions and whole banks in record time.
“Our first release has focussed on onboarding natural persons, but we plan to add KYB and wider SME-focussed functionality together in the coming months. Customers will be able to leverage not just our technologies, but also our expertise in building digital banking platforms, and Sumsub’s expertise in compliance onboarding - the synergy is perfect.”
"We are pleased to announce the technological partnership with Plumery," adds Andrew Sever, co-founder and CEO of Sumsub. Using our APIs, Plumery has been able to create a completely seamless end-to-end onboarding journey for its users. Through this partnership, we can now combine their innovation-focussed digital experience building, with the highest levels of compliance and fraud protection, provided by our platform.”
- 09:00 am
Finzly, the pioneering provider of modern payment infrastructure for financial institutions, today published a report that includes polling results of bank executives' expectations for profitability from offering instant payments using FedNow. The poll found that 51% of bankers believe that FedNow payments will become a profit center for their institutions within the next three years, and 50% think the biggest profit opportunity will come from fees enabling businesses to send and receive instant payments.
The poll results of 267 bankers are included in a new report from Finzly 'New Revenue Opportunities for Banks: B2B Real-Time Payments', which summarizes a webinar hosted by American Banker that brought together speakers Erik Van Bramer, SVP at The Federal Reserve, Ron Shevlin, CRO at Cornerstone Advisors and Finzly's Founder and CEO Booshan Rengachari. The report covers how banks can seize the growth potential of B2B instant payments and delves into top use cases.
The key findings of the poll, along with the conclusions of the esteemed panel are as follows:
When asked about the biggest profit opportunities with B2B instant payments:
- 50% of respondents mentioned fees for enabling businesses to send/receive instant payments. The panel concluded that banks not enabling instant payment send features are missing a crucial component of the profit potential.
- 29% mentioned embedding instant payments into third-party systems. According to the panel, this demonstrates the importance of smoothly integrating B2B payments into everyday business operations like tax and accounting, emphasizing the demand for modern API-based solutions enabling instant payments.
- 15% identified 'Request for Pay' (RfP) as a major profit opportunity. The panel commented that most bankers are missing a major opportunity for bank customers to request and send payments instantly using RfP, and as a result, miss the opportunity to automate invoices and bill payments through their digital banking experience.
Respondents identified their biggest concerns as follows:
- 38% identified "faster fraud" as their number one concern. The panel stressed the importance of choosing a vendor solution that can integrate real-time fraud monitoring to keep fraud at bay. They cautioned against forcing fraud detection into batch-based systems that lack the capability for real-time prevention.
- 13% felt that cannibalization of profit was their main concern. The panel emphasized that banks, especially those with suitable use cases like early wage access, need not worry about profit cannibalization. Instead, they should prepare for increased profit opportunities stemming from the growing transaction volumes associated with B2B instant payments.
- 25% are concerned that they presently don't have the technology and operations in place to be successful with instant payments. According to the panel, the adoption of instant payments should motivate banks to update their obsolete technology stacks, aligning with the demands of the modern, open, and interconnected economy where outdated batch-based systems fall short.
Finzly's Booshan Rengachari believes these concerns are an indicator that a shift in perspective is needed. "Banks continue to treat instant payments as a product, and that's the bigger problem," said Rengachari. "We must think from the customer's perspective and offer different options: some want to move money within an hour and pay a higher fee, others want to move the money in 24 hours to pay a lower fee, and still others are willing to wait four days and pay no fee. The customer will start paying for the experience, not for the payment."
With nearly 300 participants, the poll results are representative of wider industry sentiment.
- 06:00 am
Mastercard and BOK Financial Corporation today announced an expanded agreement making Mastercard the exclusive payments network across BOK Financials’ debit and commercial portfolios, as well as extending its relationship with BOK Financials' TransFund processing business. Both companies will build an innovative, inclusive, and sustainable future in banking, grounded in the shared values of advancing the communities they serve.
"Mastercard and BOK Financial share a passion and commitment to support and uplift our local communities. BOK Financial is more than a bank – it's a force for good, financial education and opportunity," said John Levitsky, President, U.S. Financial Institutions, Mastercard. “Through our expanded partnership, Mastercard will bring unparalleled expertise, technology, and services to drive new payment experiences, community impact and financial access for BOK Financial and its customers.”
“At BOK Financial, we continue to grow and invest in the future of our communities,” said David Reynolds, director of product management, at BOK Financial Corporation. “Our expanded partnership with Mastercard will allow us to deliver a differentiated value proposition for our customers through cutting-edge technology and purpose-driven initiatives. Most importantly, we’re thrilled to be working with a company who holds a steadfast promise of connecting consumers to the things that matter most to them.”
Advancing the Communities Across the South-Central United States
Mastercard and BOK Financial will leverage Mastercard’s network, technology, and services to deliver trust, increase financial access, accelerate innovation, connect consumers with Priceless benefits and experiences, and empower small businesses. Together, Mastercard and BOK Financial will:
- Deliver confidence at each transaction: with Mastercard’s leading cyber and intelligence solutions, BOK Financials’ customers will gain access to digital identify and tokenization technology to ensure each transaction is safe and secure.
- Expand inclusion & empower consumers: deliver customer-first banking tools and initiatives focused on providing financial access and literacy.
- Bring value-added services to Transfund’s processing business: scale services and payments technology across one of the leading debit processors in the U.S.
- Drive commercial innovation: leverage Mastercard’s commercial portfolio across middle market and virtual card solutions to enable businesses to drive operational efficiencies and intelligent automation for today’s complex business environment.
- Enable Open Banking: leverage Mastercard’s Open Banking solutions to enable seamless account opening and consumer and small business lending solutions.
- Deliver Priceless Experiences: access to Mastercard’s Priceless events, experiences, and cause-driven initiatives that align with their passions and purpose-driven initiatives.
- Accelerate Main Street: support the dynamic growth of Small Businesses with tools and mentorship resources like Digital Doors 2.0 to advance the communities across the region.
Additional details about the partnership, including details on new customer cards, will be released later this year.
- 04:00 am
As GoHenry continues its push for financial education to be made compulsory in all primary schools, CEO and co-founder, Louise Hill, gave oral evidence to the Education Select Committee’s inquiry into strengthening financial education in England this morning.
Also giving evidence were representatives from the Association for Citizenship Teaching, PSHE Association, NAHT, MyBnk, Young Enterprise and Santander. Louise's evidence focused on the following recommendations for how financial education could play a more prominent role in schools:
Financial education needs to be taught from primary school age as that is when it’s proven to have the biggest effect.
Teaching must be consistent to all young people regardless of the type of school they attend or the geographic and social background they come from.
It needs to be statutory and have some form of assessment to create a level playing field for all children.
There was agreement among all panelists that teachers are already under immense pressure to teach a wide range of subjects, so changes must be made to ensure financial education is given the space it needs to make a lasting impact on all young people in schools.
Today’s evidence session follows GoHenry's long-standing push to level up financial education in the UK, with its Parliament petition to #makemoneycount recently reaching 10K signatures, meaning it is awaiting a formal response from the Government. GoHenry has worked with experts and industry campaigners to push for change and better equip the next generations with vital money skills, including holding roundtables on the topic both in Parliament and the Welsh Senedd. GoHenry is also a member of The Centre for Financial Capability, backing the charity’s push for every child to be supported to develop the skills necessary to navigate critical financial decisions in later life, starting at primary school.
Louise Hill, co-founder and CEO of GoHenry, said: “Having a consistent financial education programme in all schools could transform the financial futures of young people and the wider economy. The fact that this doesn’t exist is a betrayal of an entire generation of young people in England; they have been completely left behind. Now is the time for the Government to take action and seriously prioritise the practical money skills children need to navigate real-world finance successfully and I hope the Education Select Committee will be making strong recommendations to that end.”
The full evidence session can be viewed here. To show your support for financial education in primary schools, you can sign GoHenry’s petition here.
- 01:00 am
iDenfy, a Lithuania-based RegTech company offering identity verification technology and fraud prevention tools, announced a new partnership with CO2IN, a Czech fintech and sustainability business that focuses on reducing carbon emissions with the release of its carbon credits to the world.
CO2IN was founded in 2020 with the innovative goal of reducing carbon emissions through innovative technology and financial opportunities in mind. Currently, the company operates an app that creates voluntary carbon credits from European Union emission allowances, allowing individuals and companies to offset their carbon footprints effectively. Apart from its main purpose, CO2IN offers bespoke CSR services, especially for non-financial Environmental, Social, and Governance (ESG) reporting in compliance with the most recent EU legislation.
Moreover, users can calculate their carbon footprint as well as that of their trips and purchase credits through a mobile application which can be used as a form of payment with various partners and merchants. The platform's versatility extends to assisting companies in meeting their ESG targets, making it a valuable asset for businesses and individuals committed to combating climate change.
CO2IN selected iDenfy as its partner due to the company's flexible solution that perfectly suited the project's needs. The company was able to offer a superior pricing structure, 24/7 support, and effortless integration of iDenfy's identity verification that also assists in meeting AML compliance to enhance overall application safety by detecting fraudulent information of the person before verifying its account.
The partnership with iDenfy has allowed CO2IN to significantly lower its costs for AML solutions, addressing a critical issue for the platform. With the seamless integration, iDenfy’s Identity verification system has saved a tremendous amount of time verifying new users, as well as obtaining the information that has not only improved operational efficiency but also increased CO2IN and the users' experience, allowing the company to focus on the application development without safety concerns.
This partnership between CO2IN and iDenfy represents a powerful alliance dedicated to making a positive impact on environmental sustainability and corporate responsibility. As both companies move forward, they are committed to delivering innovative solutions that empower businesses and individuals to contribute to the fight against climate change actively.
Václav Vislous, Product Owner of CO2IN, commented on the partnership: "We were looking for a partner who would offer a flexible solution that would fit our needs. Unlike our previous experience with the partners, the iDenfy solution fits us the best, saving time and overhead expenses, not to mention a great working experience.’’
Commenting on the partnership, Domantas Ciulde, the CEO of iDenfy, stated, "Empowering businesses taking confident steps towards innovative global problems solutions is a big honor to us since we can verify and prevent any fraud from stopping executing global solutions. Together with CO2IN, we aim to drive efficiency and compliance for companies, ultimately contributing to a more sustainable and responsible business landscape."
CO2IN's top priority is to assist corporations in navigating the complex landscape of ESG criteria, turning mandatory compliance into an opportunity for increased business, customer and employee satisfaction, resilience, and sustainability.
