As summer turns to fall and the smell of pumpkin spice fills the air, the financial services industry continued to see lots of great news in September. To recap the month, we pulled together the top articles garnering attention from BizTech Magazine’s Top 25 Financial IT Blogs during September. The blogs covered topics including thoughts on the latest on the future of fintech, insights from Accenture on bank core processing, a look at the EMV upgrade one year later, increased cybersecurity at the central banks and a closer look at how same-day ACH will affect banks.
Here are the highlights:
Young fintech companies are facing a harsh new reality. After years of unbounded growth fueled by billions in venture capital, the market dynamics that made it all possible have changed. Two trends underscore this market recalibration.
With the one-year anniversary of the EMV liability shift in the U.S. upon us, we see that progress is evident, but issues regarding implementation, chargebacks and transaction times remain. These issues will most likely continue into 2017. EMV deployment was never predicted to be simple and was one of the biggest changes in the U.S. payments system in the past 50 years.
Mobile banking means you don’t have to wait in line at a branch (not that there would be a line these days if you went there). Accounts can be opened within minutes, and loans are approved more quickly. Perhaps most crucially, payments are getting faster. Real-time payments are available through a growing number of networks, and same-day ACH — or part of it, at least — is going live today.
A committee of central banks within the Bank for International Settlements (BIS) has set up a task force to oversee the security of banks and establish standards for the financial bodies to follow during cross-border banking, reports Reuters. The task force is looking at whether to establish cybersecurity standards for inter-bank financial transfers, and it could sort responsibilities of banks and SWIFT during inter-bank transfers and identify “breakdowns” in the system.
Most banks know they need to upgrade their core to stay competitive. Clunky batch-driven deposit and credit systems don’t perform well in a multi-channel, multi-product and multi-segment banking model. Configurable products, contextual “in the moment” advice and seamless experiences across channels need back-end systems that are real-time, agile and component-based. But the issue for most banks isn’t the knowing — it’s the doing.