Followers

Followers

Search This Blog

This is default featured slide 1 title

Go to Blogger edit html and find these sentences.Now replace these sentences with your own descriptions.

Thursday, 7 January 2021

The Data Management Challenge

 Data data everywhere , not a bit to use  can become a familiar story in banks as our sources of data such as ISO20022 information , internet of things (IoT) with every edge device capable of a payment transaction and scads of video, biometric  and other unstructured data. Banks have done a good job of gathering all this data but very few know where it is or how to use it.Here are the issues:-Keeping up with storage and use for consumption by analysts and data scientists.-Why is the data being collected ? Few know why and how it...

Wednesday, 6 January 2021

Data Security in ISO 20222 with Tokenization

 With increasing use of account level credentials being used for facilitating payments it comes with risk of ensuring safety of the remittance information. Compounded by various real time rails and the rise of immediate payments the new payment methods such as wallets, ecommerce, QR code and  other payment methods have increased the chance of fraud . Given lack of delay in the real time rails and that payments are irrevocable, fraud mitigation is taken on a higher priority.Tokens , which can be thought of as surrogates for the PAN or...

Tuesday, 5 January 2021

Customer minutes and friction as a metric for Banks

 Everywhere we see especially in ecommerce what used to be complicated method of paying for goods and if required getting refunds used to be fraught process. Nowadays Amazon has shown the way with One click ordering and refunds.This consumer focus to help make their lives easier while interacting with a machine has been rewarded both by customers and the stock markets . What are some examples where banks have made the difference?- Transaction alerts on the mobile app -Customer authentication on the phone if calling from a registered number-Servicing...

Monday, 4 January 2021

Business in the instant payment world

 Many jurisdictions are working on implementing a low value system on real time rails. Built on ISO20022 payment messaging standards, these promise the availability of instant and irrevocable settlement as well as rich data about the transaction such as invoice details.Some well established business use cases that will benefit from these new capabilities  where payments are available 24x7  as opposed to time delay for ACH and checks are:-Ecommerce vendors buying and selling online-Gig economy payroll for workers for payment of hourly...

Sunday, 3 January 2021

CSM Opportunity for Banks

 Given the huge innovation in payment initiation  for consumers its only a matter of time that businesses would ask banks what options are available for them to participate in the instant payment world.Its not going to be easy for banks. They will have to take calls that may or may not pan out. One area they can start thinking about is the Clearing and Settlement function. There is a history of lag and costs in this area. However there is sporadic innovation as well. Ripple's cross border RippleNet system has shown the potential for reducing...

Saturday, 2 January 2021

Banks cede innovation in Retail Payments

 We have seen the great uptick in new methods of payment initiation by the customer. Examples of these are:-QR Codes-Request to Pay-Pay by mobile phone and other devices using Google or Apple Pay-Buy now Pay Later or Installment Pay.-EMT or email money transferAll these new services are can be grouped as Alternative Payment Methods (APMs). These services are possible by layering an Alias Directory on top of the payer, payer's bank, the network, the payee's bank and the payee. Overlay services delivered via the alias directory improve customer...

Friday, 1 January 2021

What is LEI?

 LEI stands for Legal Entity Identifier . This is a 20 character alpha numeric code based on ISO 17442 standard. This code helps in identifying the legal entities in a payment transaction. For example in Canada all counterparties to the derivatives transactions need to have an LEI. As faster payments and pay mod initiatives kick  in, more market participants including legal companies, their subsidiaries, government departments, charities...